MANILA, Philippines - Global air traffic rose six percent in the first half of the year, translating to higher earnings for major players in the airline industry, the International Air Transport Association (IATA) reported over the weekend.
Tony Tyler, IATA’s director general and chief executive officer, said growth in passenger demand last June boosted the revenue passenger kilometers (RPK) to 4.8 percent and the passenger load factor to 81.7 percent.
Tyler noted that Asia-Pacific airlines were responsible for half of the increase in RPKs from May to June but said it is too early to say if this acceleration marks a trend for the rest of the year due to the volatility of Asia-Pacific performance.
European airlines posted a solid growth of 4.8 percent, reflecting an easing in recessionary conditions in the euro zone and an improvement in business and consumer confidence. Emerging markets such as Africa booked a growth of 10.8 percent, and the Middle East with 11 percent.
“June was a positive month for passenger markets. The stability in the euro zone, albeit tentative, is giving a boost to business and consumer confidence. And the load factor at 81.7 percent shows that airlines are efficiently meeting increasing demand for travel,†he stressed.
However, Tyler warned that about some headwinds as economic growth in the BRICS economies, including China, is slowing while oil prices remain high.
Data showed that international air travel expanded strongly by 5.9 percent in June amid the slowdown in the growth of Asia Pacific carriers to 5.5 percent from 6.7 percent.
“Slower than expected economic growth in China during the first half of 2013 coupled with a decline in both trade and export orders are negatively impacting travel across the region. Nonetheless, Asia Pacific carriers did account for nearly half of the May to June growth in RPKs,†he added.
On the other hand, total domestic air travel performed strongly in June, climbing 6.1 percent with China leading the growth with 14.6 percent in June despite a reported economic slowdown in recent months.
“The half-year report for passenger markets is broadly positive. There is plenty of evidence to support some cautious optimism. Airlines are expecting continued growth in demand, but there is little immediate hope for an improvement in yields,†he said.
On the other hand, IATA also reported a 1.2 percent year-on-year expansion in global air freight demand.
While global economic trend has been defined by robust emerging economies and stagnant growth in developed markets, the strongest improvements in business confidence are now occurring in some developed economies. Nevertheless, overall business confidence, which is a key indicator for air freight, continues to be weak.
“It’s too early to tell if June was a positive turning point after 18 months of stagnation. Air freight volumes are at their highest since mid-2011, but that good news needs to be tempered with a dose of reality. The global economic environment remains weak, and the basis for the acceleration of air cargo growth in June appears to be fragile,†Tyler said.