AIRPORT: In 2008 developments in traffic at PJIA were mixed. Passenger movements amounted to 1,714,987 in 2008; that is an increase of 3.8% compared to 2007. In contrast the number of aircraft handled declined by 3.8% to 71,936 compared to 2007. As a result we at PJIAE are relatively pleased with the realized results in 2008. The development in traffic is illustrated in the graph below.
The divergent traffic data can be ascribed to the timing of the impact of the different global economic events. The decline in airline movements can be explained by the effects of the surge in oil prices as of 2005 which peaked at about $140 per barrel in 2008. This caused airlines to increase fares and fees to offset the increase in operating costs and cut capacity in an attempt to streamline operations. These developments coupled with the global economy slipping into recession, have forced airlines to rationalize their business to ensure more cost efficient operations. In 2008 the airport handled 71,936 aircraft movements, down from 74,769 in the previous year. Passenger movements on the other hand continued to grow throughout the first three quarters of 2008 (5.6%), but declined by 2.5% in the last quarter, thus starting to show the effects of the global financial and economic crisis on global passenger demand.
With the current global economic recession deepening, the outlook for 2009 remains uncertain. Current forecasts point to a decline in traffic of 5% to 12%. We at PJIAE have therefore taken and will continue taking steps to further streamline our operational expenses and to position ourselves to offset the expected fall out in business activity with the objective to successfully navigate through the difficult times ahead. Furthermore, in this period of declining demand, we consider it from a strategic perspective essential that St. Maarten and PJIAE do all that is necessary to stand out positively and maximize returns from the limited business opportunities. In particular PJIAE will continue to focus on ensuring safe and secure operations, on the one hand, and on the provision of efficient and quality services, on the other hand, with the aim of improving our competitive position.
