Middle East airlines record 10.5% jump in passenger traffic

Dubai - 19.5% rise in capacity causes load factor to fall 5.7 percentage points to 74.3%.

Middle Eastern airlines recorded 10.5 per cent growth in air passenger traffic in June - the highest growth rate in the world - but a 19.5 per cent jump in capacity had caused load factor to plunge 5.7 percentage points to 74.3 per cent, the International Air Traffic Association, or Iata, said on Thursday.
However, the traffic growth in June was slower than in May (14 per cent), partly owing to the timing of the holy month of Ramadan when demand is traditionally subdued for air travel, the global body said.
Iata said global demand for air travel continued to rise in June, albeit at a slowing rate as weakness in Asia-Pacific and the impact of the Greek debt crisis were felt.
In June, international passenger traffic rose 5.3 per cent compared to the same 2014 period, but down from 6.9 per cent growth in May 2015. Global capacity climbed six per cent pushing load factor down 0.5 per cent to 80.4 per cent.

Airlines in all regions except Africa recorded growth although there was wide variation between regions, said Iata.
"June was another healthy month for demand for air connectivity, although slower trade activity in emerging Asia-Pacific markets and the impact of the Greek debt crisis on European travel remain worrisome," said Tony Tyler, Iata's director-general and CEO.
Asia-Pacific airlines recorded 6.8 per cent growth in June traffic compared to the year-ago period, which was down from a 9.3 per cent rise recorded in May. Capacity climbed 5.8 per cent and load factor increased 0.7 percentage points to 78.1 per cent.
European carriers saw demand climb 4.1 per cent in June versus June 2014, which was below the 5.7 per cent rise in traffic in May. North American airlines experienced a 2.7 per cent increase in traffic, which was above the two per cent increase recorded in May. Capacity rose 2.8 per cent and load factor slipped 0.1 percentage points to 84.9 per cent, which still was the highest among the regions, Iata said.
In June, global air freight markets showed a slowdown in growth. Air freight volumes measured in freight tonne kilometers (FTK) rose just 1.2 per cent compared to a year ago. This is consistent with falling trade activity and weaker than expected global growth.
Middle Eastern carriers saw the strongest growth with demand expanding by 15.3 per cent, and capacity rose 19.2 per cent.
"Airlines in the region have pursued a successful hub strategy connecting both long- and short-haul markets. Although some major economies in the region have seen slowdowns in non-oil sectors, economic growth remains generally robust, which is also helping to sustain demand for air freight. Growth for the year-to-date is running at 14 per cent," Iata said.
- issacjohn@khaleejtimes.com

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• MENA