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CAPACITY UP 12.9pc

Mideast air traffic growth slows in September

GENEVA, November 5, 2015

Middle East carriers saw international passenger demand climb only 9.9 per cent in September, well down on August's 13.7 per cent growth, as major economies in the region, including Saudi Arabia and the UAE, experienced slowdowns in non-oil sectors.

However, capacity rose 12.9 per cent with load factor slipping 2.1 percentage points to 75.7 per cent, said a report released by The International Air Transport Association (Iata)

The global total revenue passenger kilometres (RPKs) rose 7.3 per cent compared to the year-ago period, slightly above the 7.1 per cent growth achieved in August, while September’s capacity (available seat kilometers or ASKs) increased by 6.6 per cent, and load factor rose 0.5 percentage points to 80.7 per cent.

“The demand for air travel in September was robust—even with the economic slowdown in some key emerging markets such as China. The industry seems set for a positive end to 2015,” said Tony Tyler, Iata’s director general and CEO.  

Overall, international passenger demand for the month rose 7 per cent compared to September 2014, with airlines in all regions recording growth. Total capacity climbed 6.9 per cent, and load factor edged up 0.1 percentage points to 80.5 per cent.

Furthermore, domestic travel demand rose 7.8 per cent in September compared to same period in 2014, with all markets except Brazil showing growth. The strongest increases were recorded in India, China and Russia.

Domestic capacity climbed 6.1 per cent and load factor also improved 1.3 percentage points to 81 per cent.   

“Aviation’s connectivity is vital to the health and well-being of the global economy. And financial strength is critical to the industry delivering its best. While the overall outlook is for a collective profit that covers the industry’s cost of capital, parts of the industry are really struggling. The poor economic performance in Brazil is having a dramatic negative impact on the industry’s performance in Latin America’s largest market. There are a number of swift policy options that the government could take to stimulate the sector by reducing the burden of onerous taxes, punitive regulation and a crippling fuel pricing regime. A comprehensive policy response would unleash the power of aviation connectivity and pay big dividends across the economy. There is no time for complacency,” said Tyler. – TradeArabia News Service




Tags: demand | Traffic | Passenger | international | carriers |

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