PASSENGER DEMAND GROWTH ACCELERATES IN APRIL
Representative image
The International Air Transport Association (IATA) announced global passenger traffic results for April showing a healthy increase in demand. Total revenue passenger kilometers (RPKs) rose 7.5 per cent compared to April 2013, an improvement over March growth of 2.9 per cent.
The year-on-year comparison is somewhat biased by the timing of the Easter holiday, which occurred in April 2014, a month later than in 2013. April capacity increased 5.8 per cent, propelling load factor up 1.2 percentage points to 79.4 per cent.
“April’s demand growth was a pleasant surprise in the face of the moderating trend of recent months but it is not clear whether the acceleration in demand is sustainable in view of global economic trends including slower growth in China,” said Tony Tyler, Director General and CEO, IATA.
Asia-Pacific carriers’ traffic rose 6.7 per cent compared to the year-ago period but capacity rose 7.7 per cent and load factor slipped 0.7 percentage points to 75.7 per cent. Economic conditions in the region do not support further acceleration in demand growth, with China continuing to show weakness and Japan starting to see some reversal of previous growth momentum. In Japan, a recent sales tax increase caused indicators for economic activity to decline sharply in April.
Domestic travel demand rose 5.8 per cent in April compared to April 2013, with the strongest growth occurring in Brazil, China and Russia. The timing of the Easter holiday, which fell in April this year and in March a year-ago, had a positive influence on comparisons in some markets.Total domestic capacity was up 3.9 per cent, and load factor rose 1.4 percentage points to 80.2 per cent.
“In just a few days, the world air transport community will gather in Doha, Qatar for the 70th IATA Annual General Meeting. The strong demand for air travel recorded in April reinforces aviation’s importance as an enabler of global economic growth and job creation, while the slowdown in Japan’s demand growth illustrates the sensitivity of the sector—and the economic benefits that it provides—to taxes. All those visiting the Gulf for the AGM will have a unique opportunity to see the potential for aviation to drive development when in a business-friendly environment and with the right infrastructure,” Tyler said.