DEMAND FOR AIR TRAVEL DECELERATES IN MARCH: IATA
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The International Air Transport Association (IATA) announced global passenger traffic results for March showing a moderation of the pace of growth in demand. Total revenue passenger kilometers (RPKs)increased 3.1 per cent compared to March 2013. Although this represented a slowdown in comparison to the February year-over-year traffic increase of 5.6 per cent, cumulative traffic growth for the first quarter of 2014 was 5.6 per cent, which is a slight improvement over the 5.2 per cent overall growth achieved in 2013.
“After a number of very strong months we are seeing a slowing of demand growth. The strong performance of advanced economies nevertheless is likely to support the continued growth of traffic in the coming months,” said Tony Tyler, Director General and CEO, IATA.
International passenger traffic rose 2.6 per cent in March, a significant slowdown compared to the 5.4 per cent increase in February. Capacity rose 5.5 per cent and load factor fell 2.3 percentage points to 78.0 per cent. Most regions experienced a slowdown in year-on-year growth rates.
Asia Pacific carriers experienced some of weakest traffic growth in March with international traffic up just 1.1 per cent compared to a year ago. Part of this is attributable to the relative slowdown in demand after the positive impacts from the Lunar New Year in January/February. But the result is also probably owing to downward pressure from continued weakness in the Chinese economy, as well as a recent contraction in regional trade volumes. Capacity rose 5.3 per cent and load factor fell 3.1 percentage points to 76 per cent.
The growth of domestic markets slowed in March, rising 4.0 per cent on a year ago, compared to 5.8 per cent in February, but there was significant variation among the largest markets. With capacity up 4.9 per cent, load factor slipped 0.8 percentage points to 80.5 per cent.
“Rising demand for air travel tapered in March, following months of increasing demand. Aviation is crucial for economic expansion and development. But it is up to governments to treat aviation as a partner, not as an easy target for overly excessive taxation and onerous regulation or to have its infrastructure needs neglected. When aviation is treated as an economic enabler the industry is able to rise to its full potential as a key engine of growth and job creation,” said Tyler.