The International Air Transport Association (IATA) announced global passenger traffic results for June showing a modest deceleration in demand growth compared to the prior month. Total revenue passenger kilometers (RPKs) rose 4.7 per cent over the year-ago period, which was below the 6.2 per cent year-on-year increase recorded in May 2014. June capacity (available seat kilometers or ASKs) increased by 5.0 per cent, causing load factor to slip 0.2 percentage points to 81.5 per cent.
“June traffic growth at 4.7 per cent is encouraging even though it is a slight weakening on May’s performance. Earlier signs of a softening in demand are dissipating. While that’s good news there are many risks in the political and economic environment that need careful monitoring,” said Tony Tyler, Director General and CEO, IATA.
Asia-Pacific carriers’ traffic rose 4.9 per cent compared to the year-ago period but capacity rose 6.7 per cent and load factor slipped 1.3 percentage points to 77.9 per cent. The outlook for this region looks broadly positive, with measures of manufacturing activity and export orders pointing to better performance of China.
Domestic travel demand rose 3.4 per cent in June compared to June 2013, with the strongest growth occurring in Russia and China. Total domestic capacity was up 3.8 per cent, and load factor slid 0.3percentage points to 81.7 per cent.
“Demand for air travel and the connectivity it provides remains strong. But uncertainty in the global political and economic climate has the potential to negatively impact demand. Risk is today’s reality, whether it’s conflict in the Middle East, sanctions and an impending trade war with Russia, possible default in Argentina or the Ebola outbreak in Western Africa. All have the potential to dent demand. We are optimistic that the industry will still end the year with an improvement in profitability over 2013. But the regional impact of some of these risks will challenge some airlines more than others,” said Tyler.
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