Monday, February 17, 2020

Travel, Tourism & Hospitality

ME carriers see weak air travel demand in July
September 2019 670

Middle East carriers recorded a 1.6 per cent increase in demand for July, well down on the 8.3 per cent growth recorded for June, after the end of Ramadan, new data revealed

According to figures released by the International Air Transport Association (Iata), weakness in global trade, volatile oil prices and heightened geopolitical tensions have been negative factors for the region.

July capacity climbed 1.0 per cent compared to a year ago and load factor rose 0.4 percentage point to 81.3 per cent, data showed.

International passenger demand in July rose 2.7 per cent compared to July 2018, which was a deceleration compared to the 5.3 per cent growth recorded in June. Capacity climbed 2.4 per cent, and load factor edged upward 0.2 percentage point to 85.3 per cent. All regions reported growth, led by airlines in Latin America.

Domestic travel demand outperformed international growth in July, as total revenue passenger kilometres (RPKs) rose 5.2 per cent in markets tracked by Iata, up from 4.7 per cent growth in June. Domestic capacity climbed 4.7 per cent, and load factor rose 0.4 percentage point to 86.5 per cent.

The global passenger traffic results for July showed that total revenue passenger kilometres (RPKs) rose 3.6 per cent, compared to the same month in 2018. This was down from 5.1 per cent annual growth recorded in June.

Monthly capacity (available seat kilometres or ASKs) increased by 3.2 per cent and load factor rose 0.3 percentage point to 85.7 per cent, which is a new high for any month, the Iata report said.

“July’s performance marked a soft start to the peak passenger demand season. Tariffs, trade wars, and uncertainty over Brexit are contributing to a weaker demand environment than we saw in 2018. At the same time the trend of moderate capacity increases is helping to achieve record load factors,” said Alexandre de Juniac, Iata’s director general and CEO. - TradeArabia News Service

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