Mideast air traffic surge far outstrips global growth rate

Dubai - Global demand for air travel slowed to 4.6 per cent from a 6.4 per cent increase in July

Demand for air travel in the Middle Easter surged 10.3 per cent in August, far outstripping the global traffic growth of 4.6 per cent, the International Air Transport Association (Iata) said on Thursday.
Middle Eastern carriers also posted a capacity jump of 13.7 per cent, resulting in a 2.5 percentage point fall in load factor to 81.2 per cent, underscoring the sustained growth in demand for air travel fuelled by lower airfares.
Global demand for air travel slowed to 4.6 per cent from a 6.4 per cent increase in July as capacity measured in available seat kilometres rose 5.8 per cent, faster than demand, meaning load factors - a measure of how full planes are - dropped 0.9 percentage points to 83.8 per cent, Iata said in its monthly traffic update.
"While the slowdown is disappointing compared to the previous month's performance, it is still healthy growth. And although terrorist attacks in Europe have dampened demand, the impact is ebbing," said Alexandre de Juniac, Iata's Director-General and CEO.
"Lower airfares are a major factor sustaining demand for air travel," de Juniac said, "but the lingering impact of terrorist attacks in Europe earlier in the year reminds us that the aviation industry is vulnerable to many external factors beyond its control".
August international passenger demand rose 4.7 per cent compared to August 2015. All regions recorded increases, but growth was dominated by airlines in the Middle East. Capacity climbed 6.5 per cent, causing load factor to slide 1.4 percentage points to 83.9 per cent.
Asia-Pacific airlines' August traffic climbed 5.6 per cent compared to the year-ago period. Capacity rose 6.8 per cent and load factor slipped down 0.9 percentage points to 81.9 per cent. There are signs of Asian travelers continuing to be put-off by recent terrorism in Europe. Traffic on Europe-Asia routes grew just 1.5 per cent in July, the most recent month for which route-specific figures are available, while international traffic growth on routes within Asia accelerated to 9.9 per cent.
European carriers saw August demand climb 3.3 per cent year-on-year. European traffic continues to be affected by the impact of terrorism, however, there are indications this may be easing. Capacity rose 5.1 per cent, which caused load factor to drop 1.6 percentage points to 86.6 per cent - which still was the highest among regions.
North American airlines' international demand rose 1.8 per cent compared to August a year ago. However, seasonally-adjusted traffic has risen at an annualised rate of seven per cent since March, supported by transpacific demand and leisure routes to Central America and the Caribbean. Capacity rose 3.8 per cent, causing load factor to drop 1.7 percentage points to 85.3 per cent.
African airlines' traffic climbed 1.8 per cent in August. International growth has tracked sideways since the start of the year, reflecting challenges in the major economies. Capacity rose 3.1 per cent, with the result that load factor slipped 1.0 percentage point to 75.6 per cent, lowest among regions.
Demand for domestic travel climbed 4.3 per cent in August compared to August 2015, which was slightly exceeded by a 4.4 per cent increase in capacity. Load factor slid 0.1 percentage points to 83.6 per cent. All markets reported demand increases with the exception of Brazil and Russia, with India and China reporting double-digit rises.
- issacjohn@khaleejtimes.com
 
 
 
 - AP