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

Boeing eyes up Middle East for tanker export

As the combat aircraft inventories of Middle East nations continue to grow, air forces are increasingly seeking to back up their front-line units with support aircraft such as tankers. As Alan Dron reports, Boeing believes that its new

Turkish Aerospace has a new logo

Turkish Aerospace, which maintains position as a leader in the Aerospace industry of Turkey, is getting a fresh look with the new logo and identity.

Emirates opens first dedicated airport lounge in Cairo

Emirates has unveiled its 42nd dedicated lounge across its global network at Cairo International Airport (CAI).

Qatar Airways to showcase its A350-1000 at the Farnborough International Airshow

Qatar Airways has said that six state-of-the-art aircraft will be on display at this year’s Farnborough International Airshow, taking place from 16 to 22 July in Hampshire, United Kingdom.

Airbus Helicopters industrial model is coming together

The first pre-serial H160 has been fitted with its rear fuselage, the first major component assembly having been pre-assembled in Albacete, Spain according to the site specialisation strategy implemented in Airbus Helicopters.

Airbus delivers first A321neo in Cabin Flex configuration to Turkish Airlines

Turkish Airlines has taken delivery of the first A321neo in Cabin Flex configuration.

TAA SK0902311218
See us at
Cargo BT1004091018AIME19BTA3005120219MAPS18_BT1207131118Istanbul Airshow BT22018BIAS BT271017161118MEBAA BT1004121218ASDubai BT1004091018Aviation Africa BT0607280219GATM BT1004061118