Global air passenger demand slows in July: IATA
06 Sep 2019, 23:05 ( 2 Months ago) | updated: 06 Sep 2019, 23:07 ( 2 Months ago)
The International Air Transport Association (IATA) said on Friday that data showed slowing global passenger demand growth for July due to trade conflicts and uncertainties over Britain's impending departure from the European Union (EU).
Total revenue passenger kilometers rose 3.6 percent, compared to the same month in 2018, but down from the 5.1 percent annual growth recorded in June at the start of the peak travel period for the northern hemisphere.
All regions posted traffic increases. Monthly capacity increased by 3.2 percent, and load factor rose 0.3 percentage point to 85.7 percent, which is a new high for any month.
"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," said Alexandre de Juniac, IATA's director general and CEO.
Asia-Pacific airlines' July traffic rose 2.7 percent over the year-ago period, a slowdown compared to June growth of 3.9 percent and their weakest performance since early 2013
IATA said U.S.-China and Japan-South Korea trade tensions, as well as tensions in the Hong Kong Special Administrative Region of China, have all weighed on business confidence.
European carriers registered a modest 3.3 percent annual growth in July, down from a 5.6 percent year-over-year increase in June. This was the slowest rate of growth since mid-2016.
"Continuing uncertainty over Brexit and slowing German exports and manufacturing activity contributed to a weakening in business and consumer confidence," said IATA.
North American airlines' traffic climbed 1.5 percent compared to July a year ago.
This was down from 3.5 percent growth in June, reflecting the slowdown in the United States and Canadian economies and the trade disputes.