Skytra Price Indices are regulated by the Financial Conduct Authority (FCA). The indices represent the price of air travel (in the Economy Cabin Classes*) expressed in $/RPK (US dollars per Revenue Passenger Kilometer) for delivered flights in different geographies and are designed for hedging purposes. Six different indices are produced daily for the following regional markets: Europe-Europe, Europe-North America, Asia Pacific-North America, Asia Pacific-Asia Pacific, North America-North America, Europe-Asia Pacific.
$/RPK: this represents the average price (revenue) for transporting one passenger 1 km in each region represented by a Skytra Price Index.
The indices are designed for use by treasury teams in airlines, lessors, travel agents or companies that want to protect against ticket price volatility. More generally, sellers and buyers of air travel can, supported by their bank, use financial instruments (e.g swaps, options, futures…) in conjunction with these indices to hedge the price of air travel with a view to managing volatility and risk to their business from variations in the price of air travel.
Skytra will consider expanding the index offering with new regional markets and indices for specific market segments as a function of industry interest.
Skytra Price Indices are the result of over 3 years of research, analysing petabytes of flight ticket data, including offered, ticketed and flown data. Skytra has worked with the air travel industry directly to ensure each index correlates to airline prices in the region represented by the index. Whilst each airline reports different $/RPK revenues, the critical factor proving the value of the index is an airline's daily movement in relation to the index, not the absolute value. Airline price correlations are typically between 70% and 95%**.
Skytra has is registered as a Benchmark Administrator under the EU Benchmarks Regulation. Skytra Price Indices are classified as non-significant benchmarks under the EU Benchmarks Regulation. Skytra has formed an independent governance committee known as Skytra Index Oversight Committee (“SIOC”).
The SIOC advises Skytra in relation to its indices and provides independent oversight of decisions made by Skytra’s Executive Committee in relation to decisions made in the determination of Skytra benchmarks. The SIOC comprises of market users both from the financial markets and the air travel industry as well as contributors to the Benchmarks and Skytra representatives. SIOC will act in line with Article 5 EU Benchmarks Regulation (BMR).
Skytra index data is available under licence from Skytra. In order to access data, please request a call back with our sales team, or alternatively complete the relevant license agreement.
* For definitions please refer to our Rules & Methodology
** Based on the information available to Skytra and the airlines tested
Europe - Europe
Avg. $/RPK 0.181
Europe - North America
Avg. $/RPK 0.087
North America - North America
Avg. $/RPK 0.115
Asia/Pacific - Europe
Avg. $/RPK 0.060
Asia/Pacific - North America
Avg. $/RPK 0.059
Asia/Pacific - Asia/Pacific
Avg. $/RPK 0.143
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