Middle East carriers posted a 4.5 per cent increase in international travel demand for July, an acceleration from the 3.6 per cent annual growth seen in June, but still well off the five-year average pace of 11.2 per cent, recent data showed.

According to data released by International Air Transport Association (Iata), the Middle East to North America market has been affected by a combination of factors in 2017, including the recently-lifted cabin ban on large portable electronic devices, as well as a wider impact from the proposed travel bans to the US.

Traffic growth on the Middle East-US route was already slowing in early 2017, in line with a moderation in the pace of expansion of nonstop services flown by the largest Middle Eastern airlines. July capacity climbed 3.6 per cent compared to a year ago and load factor rose 0.7 percentage points to 81.5 per cent.

Latin American airlines recorded the strongest growth among regions, posting a 10.5 per cent demand rise compared to July 2016. Capacity increased almost as fast, up 10 per cent, and load factor climbed 0.4 percentage points to 84.9 per cent.

International volumes between North and Central America continue to strongly trend upward while traffic on the North-South America market segment has also started to trend upwards, in part helped by the healthier, albeit still fragile, economic backdrop in Brazil.

July international passenger demand rose 6.2 per cent compared to July 2016, which was a slow-down compared to the 7.6 per cent growth recorded in June. Total capacity climbed 5.5 per cent, and load factor edged up 0.5 percentage points to 84.6 per cent.

Demand for domestic travel grew by 7.9 per cent year-on-year in July, in line with 8.0 per cent growth recorded in June. With the exception of Australia, all markets recorded annual increases. China led all markets (up 15.0 per cent). Domestic capacity climbed 7.1 per cent, and load factor rose 0.6 percentage points to 85.0 per cent.

"As the first full month in the summer peak travel season, July is a bellwether month, and demand continues to be very strong. People want to travel and aviation connectivity is vital to the smooth functioning of the global economy. But the economic and social benefits that aviation brings need to be supported by adequate, affordable airport and air traffic management infrastructure. To do this effectively, governments must include aviation’s requirements as part of their national economic strategy," said Alexandre de Juniac, Iata’s director general and CEO.

Iata announced global passenger traffic results for July showing strong but moderating demand growth. Total revenue passenger kilometers (RPKs) rose 6.8 per cent, compared to the same month last year, down from 7.7 per cent year-over-year growth recorded in June.

All regions reported solid or better growth in passenger volumes over the past year. Capacity (available seat kilometers or ASKs) increased by 6.1 per cent, and load factor rose 0.6 percentage points to a July record of 84.7 per cent.

"As is evidenced by the record high load factor in July, the appetite for air travel remains very strong. However, the stimulus effect of lower fares is softening in the face of rising cost inputs. This suggests a moderating in the supportive demand backdrop," said de Juniac. - TradeArabia News Service