Universal slow-down in air transport: IATA

The International Air Transport Association (IATA) has revealed global air traffic results for the month of July, citing a global reduction in growth for both air travel and freight business.

Although worldwide passenger demand increased 3.4 percent compared to the same month last year, this figure represents a downturn following June’s 6.3 percent increase.

Air cargo demand witnessed significant reductions, down 3.2 percent in July compared with the same period in 2011.

In order to stabilise load factors and develop profitability, airlines have reduced capacity.

“The uncertain economic outlook is having a negative impact on demand for air transport... the growth trend is clearly slowing,” IATA director general and chief executive Tony Tyler said.

“This, along with rising fuel prices is likely to make it a tough second half of the year.”

IATA has been reporting reduced air transport demand since the beginning of the year.

International passenger market growth for June 2012 was up 7.5 percent on last year, while July results only garnered a 3.5 percent rise compared to July 2011.

Domestic markets also experienced slow growth, continuing the trend that began early in 2012; traffic rose 3.1 percent year-on year, down from 4.2 percent in June.

Despite the turbulent global economic climate China and Brazil recorded strong domestic growth.

“The huge success of the London Olympics was also an important reminder of the vital role that international aviation plays in bringing the world together and facilitating global mega-events,” Mr Tyler said.

“Now all eyes are on Brazil which will host the 2014 World Cup and the 2016 Olympics and aviation will play a key role there as well.”

Sourced: etravelblackboardasia