Mideast carriers top global table for traffic growth
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Middle East carriers noted the largest traffic growth of any region, according to data for May released by the International Air Transport Association (IATA).
Global passenger traffic results for May showing that air travel continued to expand at a healthy rate and overall demand rose 5.6%, while capacity climbed 5.2% pushing the load factor up 0.3 percentage points to 78.1%.
But Middle East carrier traffic growth grew 11.7%, although with capacity up 12.8%, load factor declined 0.7 percentage points to 73.5%. Demand for air travel in the Middle East and Africa has benefitted from continued expansion in trade volumes since late 2011.
“Global economic performance remains a concern; however, demand for air travel continues to expand,” said Tony Tyler, IATA’s director general and CEO.
“The primary driver is growing demand for connectivity to emerging markets. The business environment has also improved compared to mid-2012 with some indications of easing weakness in the Eurozone. It’s still a tough environment, but there are some reasons for optimism in the second half of the year.”
A recent IATA study supported by analysis from McKinsey & Company shows that in the 2004-2011 period airline investors would have earned $17bn more annually by taking their capital and investing it in bonds and equities of similar risk. “We need to find ways to improve returns for investors. It will require fresh thinking across the aviation value chain and from governments as well,” said Tyler.
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