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ME carriers see slowdown in air travel demand

GENEVA, December 7, 2016

Middle East carriers experienced a 7 per cent rise in demand in October compared to a year ago, the slowest pace for the region in 18 months, said a report.

Leading the global markets was Latin America (7.1 per cent), followed by Asia Pacific and the Middle East (7 per cent), Africa (5.8 per cent) and Europe (5.7 per cent), with North America (2.4 per cent)lugging far behind, according to global passenger traffic results released by International Air Transport Association (Iata).

Capacity growth of Middle Eastern carriers rose 10 per cent, and load factor dropped 2.0 percentage points to 70.1 per cent, its lowest level for the month of October since 2006.

Globally, international passenger demand for October rose 5.9 per cent compared to the same period last year. Total capacity rose faster, up 6.6 per cent, causing load factor to slide 0.6 per cent percentage points to 78.6 per cent.

Global passenger traffic results for October showing demand (measured in revenue passenger kilometers, or RPKs) rose 5.8 per cent compared to the same month last year. Capacity grew 6.3 per cent and load factor slid 0.4 percentage points to 80.1 per cent.

October’s performance was a slow-down on the 7.1 per cent year-on-year growth rate recorded in September but still was broadly in line with 10-year averages. Domestic and international travel growth largely was in balance.

“Passenger demand growth in October was consistent with long-term trends but represented a deterioration compared to September. While the negative traffic impact from terror attacks and political instability in parts of the world has receded, the long downward trend in yield—which helped to stimulate travel-has leveled off. Furthermore, the recent OPEC agreement to restrict oil production suggests fuel prices have ended their slide,” said Alexandre de Juniac, Iata’s director general and CEO. - TradeArabia News Service




Tags: demand | travel | Passenger | Carrier | Air | October | Middle | East |

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