Middle Eastern carriers posted a 2.5% increase in traffic in June, which was a “slowdown” from the already subdued 3.7% growth seen in May, IATA’s latest figures show.
Capacity rose 3.1%, and load factor slipped down 0.4 percentage points to 68.9%, IATA said in its global passenger traffic data for June.
While most markets have seen demand slowing, it is most visible on the Middle East-North America market, which has been affected by a combination of factors including the (recently-lifted) ban on personal electronic devices, as well as a wider negative stimulation from the travel ban that has now been implemented for certain countries.
However, passenger traffic between the Middle East and North America was already slowing in early 2017, in line with a moderation in the pace of growth of the largest carriers in the region.
IATA showed that demand (measured in total revenue passenger kilometres or RPKs) rose by 7.8% compared to the year-ago period. This was in line with the 7.7% growth recorded in May. All regions reported growth. June capacity (available seat kilometres or ASKs) increased by 6.5%, and load factor rose 1 percentage point to 81.9%.
For the first six months of 2017, the industry experienced a 12-year high in traffic growth (7.9%) and a record first half load factor of 80.7%. IATA director general and CEO Alexandre de Juniac said, “A brighter economic picture and lower airfares are keeping demand for travel strong. But as costs rise, this stimulus of lower fares is likely to fade. And uncertainties such as Brexit need to be watched carefully. Nonetheless, we still expect 2017 to see above-trend growth.”
The demand for domestic travel climbed 8.2% in June compared to June 2016, up slightly from the 7.9% growth seen in May. June capacity increased 7%, and load factor rose 0.9 percentage points to 84.3%.
Led by China and India, all markets reported demand increases, but with wide variation.
Air travel recorded its fastest first-half growth in 12 years, pushing load factors to record highs. And the peak northern summer travel season is likely to be record-breaking. “This is all good news. The demand for travel is strong and that, in turn, will make a positive contribution to the global economy. This growth will also further expose infrastructure deficiencies. In every part of the world airport and air navigation infrastructure is struggling to cope with demand.
“There are plenty of examples linking connectivity and economic prosperity. But few governments have been able to deliver on the imperatives of sufficient capacity, quality aligned with user needs and affordability. This year’s strong growth is a reminder that there is no time to lose,” said de Juniac.
De Juniac: Brighter economic picture, lower airfares.