AIR TRAVEL DEMAND STAYS STRONG IN MAY: IATA
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The International Air Transport Association (IATA) announced global passenger traffic results for May showing demand growth of 6.2 per cent compared to May 2013. While this represented a deceleration compared to April year-over-year traffic growth of 7.6 per cent, the performance is indicative of improving demand drivers. May capacity rose 5.2 per cent and load factor climbed 0.7 percentage points to 79 per cent. All regions except Africa experienced positive traffic growth.
“We are seeing healthy demand for air traffic to support and help sustain the pick-up in global economic activity,” said Tony Tyler, Director General and CEO, IATA.
May international passenger traffic rose 7 per cent compared to the year-ago period. Capacity rose 6 per cent and load factor climbed 0.8 percentage points to 78.1 per cent. All regions recorded year-over-year increases in demand.
Asia Pacific carriers recorded an increase of 7.3 per cent compared to May 2013, which was the largest increase among the three biggest regions. The strong performance suggests that downward pressure on demand from sluggishness in the Chinese economy is likely easing. According to JP Morgan/Markit, the measure of manufacturing activity rebounded in May, supported by a strong rise in export order growth. Capacity rose 7.5 per cent, pushing down load factor 0.1 percentage points to 74.1 per cent.
Domestic air travel rose 4.6 per cent in May year-on-year, with all markets showing growth with significant variation in performance continuing across markets. Capacity rose 3.8 per cent and load factor was 80.6 per cent, up 0.6 percentage points. Growth was especially strong in the developing economies of China and Russia.