International News

IATA releases half year airline traffic results

EAW Staff - Mumbai

The International Air Transport Association (IATA) has released traffic results for the first six months of 2007 showing 6.3 per cent growth in year-on-year international passenger demand, slightly higher than the 5.9 per cent full-year rise recorded for the year 2006. However, passenger demand growth weakened to 5.3 per cent for the month of June, the lowest growth rate in nine months.

Freight demand for the first six months of 2007 grew 2.7 per cent, well below the 4.6 per cent growth recorded for the full-year in 2006. While year-to-date demand growth is weaker than forecast, June year-on-year demand for freight grew 4.9 per cent. This is the second consecutive month of strengthening demand for freight, following the 5 per cent growth recorded in May, and could be indicating a return to historical growth levels in the 5-6 per cent range.

Average passenger load factors were 75.7 per cent during the first half of the year, up 0.6 per cent over the same period in 2006. "A focus on efficiency, with careful capacity management, is keeping load factors at record levels. But the challenge will get tougher. Over the next 18 months almost 1,800 new aircraft will be delivered - equal to 10 per cent of the existing fleet," said Giovanni Bisignani, director general and CEO of IATA.

Asia Pacific's carriers are expected to receive the biggest share (35 per cent) of the new aircraft, to meet demand in the fast-growing Chinese and Indian markets. With a stronger emphasis on fleet replacement, but also to meet demand growth, European airlines will take delivery of 26 per cent and North American airlines will take on 25 per cent.

The Middle East led all regions with passenger demand growth of 17.8 per cent that outpaced capacity growth and boosted load factors during the first half of the year. Africa followed with 9.9 per cent thanks to improving links with Asia and the Middle East. Asia demand rose 6 per cent due to favourable economic conditions followed by North America (5.2 per cent), Europe (4.9 per cent) and Latin America (0.7 per cent).

Air freight demand growth was led by airlines in the Middle East during the first half of the year at 11.7 per cent. Demand growth in Asia Pacific rose 4.6 per cent during the same period although demand surged to 7.4 per cent in June following a 7.6 per cent increase in May. Demand growth in Europe was sluggish (0.7 per cent) and contracted in North America (-1.2 per cent) and Latin America (-3.8 per cent).

"Strong passenger demand means that record numbers of people are expected to travel in August. Harmonised security measures across borders are more critical than ever. The US-EU agreement on the sharing of passenger data, signed this month, was a step in the right direction. But governments must focus much more on further harmonisation to ensure that effective security is also convenient for passengers" said Bisignani.