GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Travel, Tourism and Hotels

 
  Share
9 July 2017 (Dubai, UAE) - The International Air Transport Association (IATA) announced global passenger traffic results for May showing that demand (measured in revenue passenger kilometers, or RPKs) rose 7.7% compared to the same month in 2016. This was slower than the 10.9% growth recorded in April. However, this still was well ahead of the 5- and 10-year average growth rates. Capacity climbed 6.1%, and load factor rose 1.2 percentage points to 80.1%, which was a record high for the month. All regions, excluding the Middle East and North America, posted record-high May load factors. 
 
After adjusting for inflation, airfares at the start of the second quarter were around 6% lower than a year ago. IATA estimates that this contributed to around two-fifths of the annual growth in passenger traffic seen in May. However, the degree of fare stimulus is around half that seen in the second half of 2016. This stimulus is likely to fade further in light of rising airline cost pressures, while business confidence has softened. However, passenger demand is likely to remain well supported during the upcoming peak travel months of July and August.
 
“Passenger demand is solid. And we don't foresee any weakening over the busy summer months in the Northern Hemisphere. But the rising price of fuel and other input costs is likely to see airlines' ability to stimulate markets with lower fares taper over the coming months. In parallel, rising trade protectionism and barriers to travel are worrying trends that, if unchecked, could impact demand. As a business airlines depend on borders that are open to trade and people,” said Alexandre de Juniac, IATA's Director General and CEO. 
 
International Passenger Markets
 
International traffic demand rose 7.6%, with airlines in all regions recording growth, led by airlines in Africa for a second consecutive month. Total capacity climbed 5.7%, with load factor rising 1.4 percentage points to 78.5%.
 
  • European carriers' May demand climbed 7.5% over May 2016, down from the 14.5% year-over-year growth recorded in April. Capacity rose 5.2% and load factor was up 1.8 percentage points to 82.8%, which was the highest among regions. Seasonally-adjusted demand growth has moderated over the past three months, despite growing momentum in the region's economy. This appears to relate mostly to a pause in the recovery in international traffic within the region.
  • Asia-Pacific airlines saw their traffic rise 10.5% in May compared to the year-ago period. Capacity increased 7.2%, and load factor jumped 2.3 percentage points to 77.6%. Traffic on the Asia-Europe route has recovered strongly since last year's terrorism-related disruption, surging at an annualized rate of more than 26% since November. Meanwhile, traffic on inter-Asia routes remains robust.
  • Middle East carriers had a 3.7% rise in demand in May compared to a year ago, close to an eight-year low. Capacity increased 5.7%, and load factor dropped 1.3 percentage points to 69.8%. Although year-to-year comparisons are distorted by the strong performance for the same period a year ago, the slow-down also reflects the ban on the carriage of large portable electronics devices (PEDs) in the cabin from 10 airports in the region to the US, as well as a wider impact on inbound travel to the US from the Trump Administration's proposed travel bans. Passenger traffic growth on the Middle East to North America market was already slowing in early-2017. But RPKs fell again in April (-1.2%) for just the second time since at least 2010. In view of the recent Supreme Court ruling these impacts could continue. By comparison, the route to and from Europe has continued to trend upwards this year.
  • North American airlines' traffic climbed 4.8% in May, down from 10.3% annual growth in April but still a strong result for the region compared to the 5-year average growth rate. While growth has slowed of late, the comparatively healthy regional economic backdrop, coupled with the strength of the US dollar, should support outbound passenger demand, although the latter impacts inbound demand. Anecdotal evidence also suggests that tourists may be deterred by the additional security measures put in place by the US government. Capacity rose 4.2% and load factor climbed 0.5 percentage points to 80.5%.
  • Latin American airlines experienced a 9.3% increase in traffic in May compared to the same month last year. Notwithstanding ongoing challenges, an improvement in the Brazilian economy is helping to support growth, particularly on intra-South American routes. Airlines are coping well with some political and economic volatility in the region. Capacity climbed 6.8% and load factor climbed 1.9 percentage points to 81.8%.
  • African airlines' traffic rose 11.7% in May compared to the year-ago period, which was more than twice as fast as the 5.1% rise in capacity. As a result, load factor jumped 4.0 percentage points to 67.5%. Demand is supported by recovery in the key Europe market. Conditions in the region's two largest economies are diverging, with business confidence in Nigeria rising sharply over the past six months, while South Africa's economy fell into recession in the first quarter.
Domestic Passenger Markets
 
Domestic demand rose 7.9% in May compared to May 2016, down slightly from the 8.1% year-on-year growth recorded in April. Results varied widely, with China, India, Japan and Russia showing double-digit percentage growth while other regions were in the low single-digit range. 
 
  • Japan's domestic traffic surged 10.3% year-over-year, which was close to a five-year high. The rise in demand far outpaced the growth in capacity (2.6%) and domestic load factor jumped to a record high for May of 69.1%, although this was still the lowest among the markets. This performance continues to be set against a comparatively robust economic backdrop including economic expansion for five consecutive quarters, which is the longest run in more than a decade.
  • Brazil's domestic market experienced year-over-year growth (2.6%) for only the third time in 22 months amid an improving economic backdrop, although the political backdrop remains fragile. Passenger volumes are still 8% lower in seasonally-adjusted terms than their late-2010 peak.
The Bottom Line
 
On 28 June 2017, the U.S. Department of Homeland Security (DHS) announced new enhanced security measures as an alternative to global restrictions on the carriage of large PEDs in the cabin on flights to the U.S. The new measures will be introduced over the next months across 280 locations worldwide.  
“Enhanced security measures are preferable to the expansion of the current ban on the carriage of large electronic devices in the cabin. We have seen the negative impact that this has on demand. But the timeline to implement the enchanced security measures announced by the US DHS is extremely challenging. And there are many unresolved issues that need greater cooperation among states to minimize the impact on air travelers and global connectivity,” said de Juniac.



Posted by : GoDubai Editorial Team
Viewed 11962 times
Posted on : Sunday, July 9, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Air Arabia First International Flight to Commence Operations at Sohar Airport
Next Story : Global Air Freight Demand Increases 13% in May
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Filorga Launches FLASH-NUDE Collection
The Rado DiaMaster Petite Seconde Automatic COSC The Rado watch at the top of th...
Maintain Healthy Skin Year Round
PopSockets launches a new collection with crystals from Swarovski, the must-have...
Free gold coins at Malabar Gold & Diamonds Festival
MIDO Baroncelli Lady Day & Night collection
24 Karat Gold Elixir by Mehrunisa Launches in the UAE Beauty Market
Interview with Asil Attar, CEO of Al Yasra Fashion
Holiday Gifting Made Easy with Wet n Wild Beauty Specials
Get Ready for Party Season with Lottie's new make-up hits
GAZOO Racing Wins Australia Rally at FIA World Rally Championship
Golden Mile Galleria's ‘A Cultural Flair' attracts hundreds of art lovers to Pal...
Festive Gift Sets from Bubble T
Tissot PR100 Lady Sport – Chic Glamourous Festive Season
Winter wool Christmas must- haves
Time For Enchanting Moments
Samsung Galaxy A9 – Designed to capture the world in its fullest
New 1948 Seamaster Watches Join the Ranks'
Michael Kors Collection Transeason 2019 Press Presentation
Chic and Stylish Wraps with a 3 in 1 effortless concept
Els Back for the 30th Omega Dubai Desert Classic Aiming for a Record Fourth Victory
9th Edition of China Homelife Exhibition to Have Over 3000 Exhibitors Across Bus...
Tissot PR100 Lady Sport – Chic Sporty yet Feminine
New Menu alert: Moombai & Co. launches exciting and delicious food items to its menu
Five-Star Euro NCAP for Jaguar's Electric I-PACE
DKNY Launches (Limited Edition) Holiday 2018 Collection
Global Knowledge Index 2018 and The Future of Knowledge: A Foresight Report shin...
France Attractiveness Scoreboard 2018 Released
Dubai Shopping Festival Wednesday Specials at The Smile Bar
Dubai's Most Magical Festive Market Opens at Dubai Festival City Mall
Ring in a dazzling festive season at Ibn Battuta Mall
Raja Al Gurg is one of Forbes Magazine's 100 most powerful women in the world
Get Party Ready with Champion Cleaners
Nine winners honored by DQG for their innovative ideas at the 10th Global Contin...
Dubai Customs wins 3 awards from Ideas UK 2018
Jury Announced for Epson's First Ever Win-A-Robot Competition in Europe, The Mid...
Spinneys Dubai 92 Cycle Challenge | Road Closure Timings
New ACH145 Mercedes-Benz Style Cabin Model Highlights First Presence at MEBAA fo...
Al Hosn Now Open to the Public
No P-ain, No G-ain! Mega Musclemen Return to Dubai
ICAEW recognises Middle East's best finance professionals
Voting on UAE Superbrands 2019 Begins
It's a Wrap! The Second JLT Restaurant Awards Conclude with a Glitzy Ceremony At...
His Highness Sheikh Saud discusses collaboration with British Consul-General And...
CBUAE and Central Bank of China meet to Enhance Renminbi Clearing in the UAE
Young Emirati Champion Rashid Al Dhaheri Powers Ahead to Stunning Victory at the...
Arla Foods launches initiative with UAE Ministry of Education to promote healthi...
Abu Dhabi International Airport Becomes First Transport Hub to Harvest Energy an...
Zayed Book Award Longlist Announced for ‘Young Author' Category (2018 - 2019)
Ford's Desert Driving Tips, Episode 4: Driving Safely in the Desert