Subscribe Free
in Business & Finance

Middle Eastern carriers posted a 2.5% traffic increase in June

Posted 7 August 2017 · Add Comment

The International Air Transport Association (IATA) announced global passenger traffic data for June showing that demand (measured in total revenue passenger kilometers 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 kilometers or ASKs) increased by 6.5%, and load factor rose 1.0 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%.

Middle Eastern carriers posted a 2.5% traffic increase in June, which was a slowdown from the already subdued 3.7% growth seen in May. Capacity rose 3.1%, and load factor slipped down 0.4 percentage points to 68.9%. While most markets have seen demand slowing, it is most visible on the Middle East-North

“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,” said Alexandre de Juniac, IATA’s Director General and CEO.

Asia-Pacific airlines’ June traffic jumped 9.1% compared to the year-ago period. Capacity rose 7.9% and load factor edged up 0.9 percentage points to 79.3%.The overall upward trend in seasonally-adjusted traffic remains strong, although volumes have slipped in recent months. Traffic on Asia-Europe routes continues to trend upwards following terrorism related disruptions in early 2016.

However, solid demand growth on international routes within Asia has paused.

European carriers saw traffic rise 8.8% in June compared to June 2016, which was up from a 7.5% year-over-year increase recorded in May. Capacity climbed 6.5% and load factor rose 1.8% percentage points to 85.9%, highest among the regions. The stronger growth reflects both a favourable comparison with the year-ago period, as well as increased momentum in the regional economic backdrop.

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.

North American airlines’ demand rose 4.4% compared to June a year ago. Capacity climbed 4.1%, with load factor inching up 0.3 percentage points to 84.5%. The comparatively robust economic backdrop in North America is expected to continue to support outbound passenger demand. However, anecdotal evidence suggests that inbound tourism is being deterred by the additional security measures in place for travel to the US.

Latin American airlines experienced a 9.7% rise in demand compared to the same month last year supported by strong travel within the region, while travel to North America is flat to down slightly. Capacity increased by 9.1% and load factor rose 0.4 percentage points to 82.1%.

 

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Emirates and Qantas to renew their vows

Emirates and Qantas are hoping to continue their special relationship and have applied to the the Australian Competition and Consumer Commission (ACCC) to renew their alliance.

EAG launches second Fikra University project

Etihad Aviation Group (EAG) has launched its Fikra University project for 2017. Fikra University is a competition which aims to foster entrepreneurship and innovation with students across the UAE.

Inzpire delivers cyber, UAS and ISR training to Royal Jordanian Air Force's new ISR wing

Inzpire's training experts have recently delivered tailored Cyber, Intelligence, Unmanned Air Systems (UAS) and Intelligence, Surveillance and Reconnaissance (ISR) training courses to a cohort of Royal Jordanian Air Force (RJAF)

AJW Group announces Tom De Geytere as chief sales officer

AJW Group has announced the promotion of Tom De Geytere to Chief Sales Officer to support its fast-growing business.

Flitetec launching new products at Dubai Airshow

UK-based aircraft interiors company, Flitetec, is set for the global launch of new products when it attends its first Dubai Airshow next month (12 to 16 November).

Rolls-Royce Trent 7000 powers Airbus A330neo first flight test

The Rolls-Royce Trent 7000, the latest member of the Trent family of engines, has successfully powered the new Airbus A330neo into the skies for its first test flight today.

Aviation Africa SK18418
See us at
DAS BT1105161117DIAC BT1105121117AIMA Africa 2017AIME BT1204240118Global Aerospace BT28218DASAS BT3006161117Aviation Show 267291117Aviation Africa BT18418