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Geneva - The International Air Transport Association (Iata) says the demand for air travel recorded another solid month of growth in July.
Overall revenue passenger kilometers (RPKs) were up 5% compared to July 2012.
All regions were up year-on-year, with emerging markets recording the strongest increases.
Capacity rose 5.5% on the previous July, ahead of demand, and industry load factor dropped 0.4% points to 82%.
Although July’s 5% performance was not as strong as June’s (6%), this likely reflects both a market correction in line with prevailing economic conditions as well as the impact of reduced travel in markets observing the Ramadan period.
Iata's director general and CEO Tony Tyler said: "Passenger demand continues to be strong, but the story of emerging markets driving growth as developed economies stagnate could be shifting and we're still expecting growth of 5% this year. How that growth is achieved, however, appears to be at a turning point.”
“The emergence of the Eurozone from an 18-month recession provided the biggest boost to traffic over recent months.
"In contrast, the deceleration of the Chinese economy has been a dampener on air travel, with weakness showing up throughout emerging Asian markets.
"The price of oil, a huge cost item for airlines, is tracking political tensions in the Middle East," Tyler said.
Recession
>>African airlines’ traffic climbed 7% compared to July 2012, second best among the regions, while capacity rose 5.6%, boosting load factor 1.3 percentage points to 73.6%, still the lowest among the regions. Expansion in trade is driving the healthy rise in demand for air travel on the continent.
>>Asia-Pacific carriers’ July traffic was up 6% on a year ago. Capacity rose 6.6% and load factor dipped 0.2 points to 79%. The support for growth at this rate is weakening.
>>European carriers recorded a 3.7% increase in demand compared to July 2012, in line with year-to-date growth although a significant decline compared to June results (5.%). The Eurozone emerged from its 18-month recession during the second quarter, giving grounds for cautious optimism for the region’s performance in the second half tempered by significant variations by country.
>> North American airlines’ international traffic rose 3.6% in July versus the same month last year, while capacity climbed 2.9%, pushing load factor up 0.6 percentage points to 87%, the highest for any region. Latest indicators show July business confidence reaching levels not seen since March, with consumer confidence also showing improvement at the end of the second quarter.
>>Middle East carriers experienced the highest growth rate for any region, with July traffic up 7.8% compared to a year ago. While this is a fall-off from even higher year-over-year growth in June (12%), part of the decline can be attributed to the timing of Ramadan, which has a dampening effect on demand. In 2013 Ramadan spanned most of July whereas it occurred mostly in August in 2012.
>>Latin American airlines posted year-on-year demand growth of 7%, almost perfectly aligned with capacity growth of 7%. The load factor slipped 0.1 percentage points to 82%, slightly below the industry average. Although Brazil continues to see inflation rising and domestic demand weakening, this is being partly offset by strong expansion in Chile and Colombia.
Iata said 240 member airlines supported a resolution calling on goverments to reach a global agreement on a market-based measure
Iata’s 240 member airlines in June supported a resolution calling on governments to reach a global agreement on a market-based measure as a key tool to manage aviation’s carbon footprint and achieve the industry’s carbon-neutral growth target.
Iata said industry and governments had to work together on key measures to maximize the impact of improved technology, operations and infrastructure on aviation’s carbon footprint.
Overall revenue passenger kilometers (RPKs) were up 5% compared to July 2012.
All regions were up year-on-year, with emerging markets recording the strongest increases.
Capacity rose 5.5% on the previous July, ahead of demand, and industry load factor dropped 0.4% points to 82%.
Although July’s 5% performance was not as strong as June’s (6%), this likely reflects both a market correction in line with prevailing economic conditions as well as the impact of reduced travel in markets observing the Ramadan period.
Iata's director general and CEO Tony Tyler said: "Passenger demand continues to be strong, but the story of emerging markets driving growth as developed economies stagnate could be shifting and we're still expecting growth of 5% this year. How that growth is achieved, however, appears to be at a turning point.”
“The emergence of the Eurozone from an 18-month recession provided the biggest boost to traffic over recent months.
"In contrast, the deceleration of the Chinese economy has been a dampener on air travel, with weakness showing up throughout emerging Asian markets.
"The price of oil, a huge cost item for airlines, is tracking political tensions in the Middle East," Tyler said.
Recession
>>African airlines’ traffic climbed 7% compared to July 2012, second best among the regions, while capacity rose 5.6%, boosting load factor 1.3 percentage points to 73.6%, still the lowest among the regions. Expansion in trade is driving the healthy rise in demand for air travel on the continent.
>>Asia-Pacific carriers’ July traffic was up 6% on a year ago. Capacity rose 6.6% and load factor dipped 0.2 points to 79%. The support for growth at this rate is weakening.
>>European carriers recorded a 3.7% increase in demand compared to July 2012, in line with year-to-date growth although a significant decline compared to June results (5.%). The Eurozone emerged from its 18-month recession during the second quarter, giving grounds for cautious optimism for the region’s performance in the second half tempered by significant variations by country.
>> North American airlines’ international traffic rose 3.6% in July versus the same month last year, while capacity climbed 2.9%, pushing load factor up 0.6 percentage points to 87%, the highest for any region. Latest indicators show July business confidence reaching levels not seen since March, with consumer confidence also showing improvement at the end of the second quarter.
>>Middle East carriers experienced the highest growth rate for any region, with July traffic up 7.8% compared to a year ago. While this is a fall-off from even higher year-over-year growth in June (12%), part of the decline can be attributed to the timing of Ramadan, which has a dampening effect on demand. In 2013 Ramadan spanned most of July whereas it occurred mostly in August in 2012.
>>Latin American airlines posted year-on-year demand growth of 7%, almost perfectly aligned with capacity growth of 7%. The load factor slipped 0.1 percentage points to 82%, slightly below the industry average. Although Brazil continues to see inflation rising and domestic demand weakening, this is being partly offset by strong expansion in Chile and Colombia.
Iata said 240 member airlines supported a resolution calling on goverments to reach a global agreement on a market-based measure
Iata’s 240 member airlines in June supported a resolution calling on governments to reach a global agreement on a market-based measure as a key tool to manage aviation’s carbon footprint and achieve the industry’s carbon-neutral growth target.
Iata said industry and governments had to work together on key measures to maximize the impact of improved technology, operations and infrastructure on aviation’s carbon footprint.
