International passenger demand leaps by double digits in June
Published: 29/07/10
Source: ©The Moodie Report
By Dermot Davitt
INTERNATIONAL. International passenger demand among the world’s airlines climbed by +11.9% year-on-year (measured in revenue passenger kilometres) in June, the International Air Transport Association (IATA) has reported.
Capacity increased only slightly above demand improvements during the month, keeping load factors in line with historical highs, at 79.8% for passenger traffic.
“The industry continues to recover faster than expected, but with sharp regional differences. Europe is recovering at half the speed of Asia with passenger growth of +7.8% compared to the +15.5% growth in Asia Pacific,” said IATA Director General and CEO Giovanni Bisignani.
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Giovanni Bisignani: "The question is how long can the industry maintain the double-digit momentum"
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Outside of Europe, all regions reported double-digit growth in passenger traffic. “The question is how long can the industry maintain the double-digit momentum,” Bisignani said. “Business confidence remains high and there is no indication that the recovery will stall any time soon. But, with government stimulus packages tailing off and restocking largely completed, we do expect some slowing over the months ahead.”
After a dip in April due to the volcanic ash crisis, international passenger demand has returned to its upward growth trend shown in the rest of 2010. Passenger volumes are now 1–2% above the pre-recession peak in the first quarter of 2008.
Middle Eastern carriers continue to post the fastest growth – up +18.0% compared to June 2009. This is based on a strong regional economy and the ability to attract long-haul traffic through the region’s hubs, noted IATA.
Asia Pacific carriers recorded the most significant demand improvement at +15.5%. China continues to be the region’s growth engine.
North American carriers posted growth of +10.8%, comparable to the +10.9% recorded for May 2010. Strong growth and the industry-leading load factor of 86.6% are contributing to strong second quarter financial results being announced by the region’s carriers.
European carriers reported +7.8% growth, down slightly from the +8.3% recorded in May. While annualised growth of +6.2% is in line with the industry average, the recovery in Europe is lagging behind the rest of the world, said IATA.
Latin American carriers showed a +14.7% increase in passenger traffic compared to June 2009. This reflects a more normal growth rate than the +23.6% recorded in May when results were heavily skewed by the Influenza A(H1N1) crisis which centered on the region in May last year.
African carriers posted a +21.3% increase in traffic in June, buoyed by the FIFA World Cup.
Bisignani said: “We remain cautiously optimistic. A clear indication of the growing confidence is the over 400 aircraft orders announced at the Farnborough Air Show. This is good news that will bring environmental benefits through improved fuel efficiency. But it will also make the challenge of matching capacity to demand much more difficult.”
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