Route Forecasting and Development

4-day (32 hours) classroom course

Get to know the leading methodologies for route forecasting to help you assess the performance of your network and plan for the future. Over 4 days, IATA’s Route Forecasting and Development classroom course will show you how to forecast the profitability of potential new routes and analyse the impact of changes to the existing network. For every airline business model, accurate route planning and management is the key to maximize profitability. It requires a complex set of skills and data to find the right balance between scheduling, market demand and costs. You will learn the techniques for estimating demand, calculating financial impact via cost and revenue drivers, and understanding regulatory context, to plan future capacity adjustments to optimize your fleet and network.

Course code: ALC024VEEN01

Course format

• This classroom course provides 4 days (32 hours) of instruction delivered by an official IATA Instructor.
• Take this course at an IATA Training Center, Regional Training Partner, or on-demand as in-house training.
• Student performance will be based on an assessment.

Prerequisites

• Participants should have 3 years of Microsoft Excel proficiency.
• Recommended level is Entry level and Intermediate.
• The recommended level of language proficiency is ICAO Operational Level 4 for courses in English or the equivalent level for other languages.

How to register

• When you click the Register button, you will be directed to log in to your Training Account.
• Register early and save up to 25% at our Training Centers! Please read the Terms and Conditions for the early bird discount.

In-house training

To arrange in-house training for your company, please complete the in-house training request form or contact the Training Specialist in your region.

Upon completing this course, you will be able to:

• Discuss the main route demand drivers (historical capacity, O&D figures, fares, macros)
• Apply industry methodologies for calculating and estimating route profile and profitability
• Explain regulatory (bilaterals, designation, route rights) and commercial (slots, airport costs) issues
• Make the differentiation between direct and connecting traffic, and the potential of interlining and partnerships
• Develop your route profitability model and long-term capacity growth management approach

The key topics that are covered during this course include:

• The importance of airline route profitability
• Cross-functional inputs for route evaluation
• Market demand and market share forecasting
• Modelling cost and revenue inputs and drivers
• Pricing and Yield growth forecasting over time
• Yield management for new and mature routes
• Cost drivers (stage length, airport costs, aircraft costs, flight costs, etc)
• Route performance evaluation, KPI monitoring and long-term profitability management

Activities

• Interactive exercises on route profitability
• Practical exercises on cost and revenue forecasting
• Case studies on route calculations and evaluations

This course is recommended for:

• Fleet planning, network, and scheduling staff
• Revenue management and pricing managers
• Airline Sales and business development staff
• Airport strategic planning and route network development professionals
• Commercial directors at aircraft manufacturers
• Aspiring beginners interested aviation careers

An IATA Certificate of Completion is awarded to participants obtaining a grade of 70% or higher on all exercises and exams. A special distinction is awarded to participants obtaining a grade of 90% or higher.