EEUROPEUROPE AVIATIONAVIATION ICTICT FORUMFORUM 20142014

“EUROPEAN AIRLINES INTO THE FUTURE”“EUROPEAN AIRLINES INTO THE FUTURE”

29 O29 OCTOBERCTOBER 2014, A2014, AMSTERDAMMSTERDAM

ATHAR HUSAIN KHAN

CEO

ASSOCIATION OF EUROPEAN AIRLINES

AEA Members: To the power of 30

420million passengersTransported by all AEA member airlines, estimated result annual 2014

13million more

400 mill

AEA AIRLINES’ TRAFFIC – AN ENGINE OF ECONOMIC GROWTH

13million moreEstimated growth in passenger numbers,

transported by all AEA member airlines,

2014 compared to 2013

5.5million tonnes of cargoTransported by all AEA member airlines, estimated result annual 2014

100 mill.

Passengers

200 mill

1975 1980 1985 1990 1995 2000 2005 2010

745 new aircraft on order

Source: Ascend, status as at 10/2014

AEA AIRLINES ARE INVESTING

US$ 73 bn

value of investmentSource: Ascend, status as at 10/2014, value is expressed in Ascend full life base values

IT’S NOT ONLY ABOUT INVESTMENT IN AIRCRAFT

370,000 jobs

Direct employment created by AEA member airlines, 2013

AEA AIRLINES CREATE EUROPEAN EMPLOYMENT

AEA AIRLINES’ CONTRIBUTION TO EUROPEAN CONNECTIVITY

620 destinationsSource: AEA member airlines’ network, Innovata, June 2014

160 countries160 countriesSource: AEA member airlines’ network, Innovata, June 2014

+150 city-pairs Source: AEA member airlines’ network, Innovata, June 2014 vs June 2013

INDUSTRY’S EXPANSION THROUGH BETTER USE OF RESOURCES

9,6

10,0 10,1

9,4 9,5

9,8

9,59,4

9,6

Number of Flights in European Airspacemillion

+10%

+20 seatsIncrease in average size of AEA aircraft on European routes,

2014 forecast over 2006

2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: Eurocontrol. Refers to all flights in European air space , incl. overflights

+10% PLFpassenger load factors

Increase in AEA passenger load factors on European routes

2014 forecast over 2006

75% PLF European routes

80% PLF network-wide

THE AIRLINE INDUSTRY’S FUNDAMENTAL CHALLENGE

AEA Airlines' Turnover and Profitability

€100bn revenues

Source: AEA member airlines combined turnover, 2014 forecast

Revenue

EBIT Result

2014 forecast

Less than 2% EBIT margin

Source: AEA member airlines EBIT margin, 2014 forecast

Other

Internal CostsExternal Costs

5%2013 over 2007

Airlines are highly exposed to external costs

32%

Fuel

34%

Other

34%

Source: AEA data, reference year 2013

-11%

Internal Costs External Costs

excl FuelSource: AEA data

ELIMINATE INEFFICIENCIES

AVOID UNNECESSARY COST

STAKEHOLDERS’ RESPONSIBILITIES

DO AWAY WITH BURDENS

AEA’S STRATEGIC PARTNERS