Global air traffic demand growth decelerates in June

Global air traffic saw a modest deceleration in demand growth in June compared to May, with airlines body International Air Transport Association (IATA) cautioning that Ebola could be one of the biggest regional challenges for the airlines industry.
"June traffic growth at 4.7 per cent is encouraging even though it is a slight weakening on May's performance. Earlier signs of a softening in demand are dissipating. While that's good news there are many risks in the political and economic environment that need careful monitoring," IATA's Director General and chief executive Tony Tyler said in a release.
According to IATA, the total revenue passenger kilometers (RPKs) rose 4.7 per cent over the year-ago period, which was below the 6.2 per cent year-on-year increase recorded in May 2014.

June capacity (available seat kilometres or ASKs) increased by 5 per cent, causing the load factor to slip 0.2 percentage points to 81.5 per cent, it said.
According to IATA, the Asia-Pacific carriers' traffic rose by 4.9 per cent jump compared to the year-ago period, capacity increased by 6.7 per cent, while the load factor declined by 1.3 percentage points to 77.9 per cent.
"The outlook for this region looks broadly positive, with measures of manufacturing activity and export orders pointing to better performance of China," IATA said.

"Demand for air travel and the connectivity it provides remains strong. But uncertainty in the global political and economic climate has the potential to negatively impact demand," Tyler said.

Stating that the risk is today's reality, whether it's conflict in the Middle East, sanctions and an impending trade war with Russia, possible default in Argentina or the Ebola outbreak in Western Africa, he said, adding "All (these factors) have the potential to dent demand."
He, however, said IATA was optimistic of the industry ending the year with an improvement in profitability over 2013.
"But the regional impact of some of these risks will challenge some airlines more than others," Tyler said.
Cautioning that Ebola could be one of the biggest regional challenges for the industry, Tyler said travellers should be reassured that airlines are coordinating closely with the World Health Organisation (WHO) and the International Civil Aviation Organisation (ICAO).

"WHO currently advises that the risk to travellers is low and is not recommending travel restrictions or border closings. If, however, a passenger feels unwell it is always advised that they seek the advice of a doctor before travelling," he said.