Overall Pricing Dynamics & Correlation with Market Share

The LHR-MNL market this week reveals complex interactions between pricing strategies and market share performance among major connecting carriers. Saudia, holding the leading position with a 22.3% market share, has an average fare of £800, which aligns closely with the market average. Despite not ranking among the cheapest options most frequently (6 times as the lowest fare), Saudia's balanced pricing allows it to maintain strong market traction, supported by its brand appeal and strategic connectivity via Jeddah.
 

Qatar Airways, which increased its market share to 16.6% this week, shows a nuanced pricing strategy with an average fare of £820, slightly above the average. Qatar was positioned as the cheapest option 8 times over the next 60 days, indicating its competitive pricing approach. However, Qatar’s strength lies in not only offering low fares but also maintaining a stable presence in the market through a strategic range of fares, making it attractive to a broader segment, including travelers seeking a balance of price and quality.
 

Cathay Pacific holds a 13.1% market share this week, slightly down from 14.2% last week. Its average fare stands at £810, which is in line with competitors like Qatar. Cathay frequently appears as a low-fare option (12 times as the lowest fare), suggesting a focus on capturing price-sensitive travelers. However, the slight decline in its market share indicates that while the low pricing helps sustain its presence, other factors like travel patterns or competitor offerings may be affecting its ability to grow further.
 

Emirates, with a 7.4% market share and an average fare of £850, continues to position itself in the premium segment. It ranks as the lowest fare provider 7 times, using strategic discounts to maintain a competitive edge while not compromising its premium positioning. This ability to deploy competitive fares selectively has allowed Emirates to retain a stable share despite facing challenges from more aggressively priced competitors.
 

Air China and Kuwait Airways have both leveraged pricing effectively to gain market share this week. Air China's average fare of £780 is slightly below the market average, and with 10 instances of being the lowest fare provider, it has attracted a price-sensitive segment, helping to lift its share to 9.3%. Kuwait Airways, with an average fare of £795, has similarly used competitive pricing (11 times as the second-lowest fare) to push its market share to 7.6%, demonstrating how price positioning can translate directly into market gains.
 

China Southern Airlines, with a 5.4% share and an average fare of £770, has maintained a steady market presence, ranking among the lowest fares 9 times. Despite its competitive average fare, the airline has not seen a significant increase in market share, highlighting that pricing alone may not be enough to drive substantial growth. Factors like service quality and route appeal likely play a role in limiting its expansion.
 

In contrast, Singapore Airlines and Turkish Airlines, which saw declines this week, underscore the challenges of premium pricing on this route. Singapore Airlines' average fare of £1,000, the highest among the competitors, has positioned it firmly in the premium segment. However, with only 3 instances as the lowest fare, its appeal to a niche premium market is not translating into broader share gains, leading to a drop to 1.5% market share. Turkish Airlines, with an average fare of £870 and few instances of competitive pricing, has seen its share decrease to 1.5%, suggesting that it struggles to compete with the more aggressive pricing strategies of other carriers.
 

This analysis suggests that competitive pricing can drive market share gains, but it must be combined with other aspects of service to create lasting appeal. Qatar Airways exemplifies this with its balance of competitive pricing and brand strength, maintaining a market lead without relying solely on the lowest fares. Meanwhile, Air China and Kuwait Airways have effectively used lower fares to capture price-sensitive travelers. The struggles of premium-focused carriers like Singapore Airlines highlight the challenges of maintaining share when travelers are more sensitive to price differences.
 

Focus on Etihad Airways
 

Etihad Airways’ pricing strategy on the LHR-MNL route this week reflects a focus on competitive positioning, particularly towards price-sensitive travelers. With an average fare of £810, Etihad positions itself closely with market trends, slightly lower than competitors like Qatar Airways (£820) but higher than Air China (£780). This positioning is complemented by its frequent appearances as a low-cost option, ranking as the lowest fare provider 11 times and the second-lowest 10 times over the next 60 days. This competitive approach helps Etihad maintain its market share at 9.7%, though it has not led to significant gains compared to other carriers like Qatar Airways, which holds a 16.6% share despite similar fare levels.
 

Etihad's market share has slightly decreased this week from 10.1%, aligning closely with its cumulative average of 10.8%. This consistency suggests that while Etihad’s pricing is effective in maintaining a stable presence, it may not be attracting new market segments at the same pace as competitors like Qatar Airways. Qatar’s ability to maintain a higher market share with a comparable average fare indicates that Etihad’s competitive pricing alone may not be enough to shift preferences away from travelers who value service quality or connectivity.
 

Etihad’s approach, focusing on being the lowest fare provider, highlights a potential over-reliance on price competitiveness rather than differentiation through other value propositions. The frequent availability of lower fares makes it appealing to budget-conscious travelers, yet the lack of a corresponding rise in market share suggests that factors like travel experience and brand perception may play a significant role. While Etihad’s average fare remains competitive, its fare accessibility primarily clusters around lower pricing brackets, potentially limiting its appeal among travelers who associate higher fares with better service quality.