Jul 03, 2014
African airlines show slowest passenger demand growth in MayBack
Africa|Capacity|Environment|Industrial|Africa|Europe|Chile|Colombia|Peru|South Africa|Air Travel Demand|Product|Transport|Iata|Tony Tyler|Asia Pacific
© Reuse this
“The weakness in international air travel demand for regional African carriers could, in part, be reflecting adverse economic developments in some parts of the continent, accompanied by the slowdown of the major economy of South Africa,” the International Air Transport Association (Iata) said on Thursday.
Globally, passenger traffic results for May showed demand growth of 6.2% compared with May 2013.
While this represented a deceleration compared with April’s year-over-year traffic growth of 7.6%, Iata believed this performance was indicative of improving demand drivers.
International capacity rose 5.2% in May and load factor climbed 0.7 percentage points to 79%, as all regions except Africa experienced positive traffic growth.
“We are seeing healthy demand for air traffic to support and help sustain the pick-up in global economic activity,” commented Iata CEO Tony Tyler.
This came as May international passenger traffic rose 7% compared with the year-ago period, while capacity rose 6% and the load factor climbed 0.8 percentage points to 78.1%. All regions recorded year-over-year increases in demand.
Looking more closely at regional markets, Asia Pacific carriers recorded a passenger demand increase of 7.3% compared with May 2013, which was the largest increase among the three biggest regions.
“This strong performance suggests that downward pressure on demand from sluggishness in the Chinese economy is likely easing,” Iata noted.
Capacity in this region rose 7.5%, pushing load factor down 0.1 percentage points to 74.1%.
In Europe, international traffic climbed 6.1% in May compared with the year-ago period, while capacity rose 5.3% and load factor rose 0.6 percentage points to 80.3%.
Iata attributed this to the fact that economic activity in the eurozone had recently been gaining momentum, with recent data suggesting that solid increases in industrial production and trade should result in acceleration in eurozone gross domestic product in the second quarter.
North American airlines, meanwhile, saw demand rise 4.4% in May over a year ago, implying positive underlying economic growth trends with easing pressure on employment levels.
Capacity rose 4.8%, pushing down load factor 0.3 percentage points to 83% – still the highest among all regions.
Middle East carriers had the strongest year-over-year passenger traffic growth in May, at 13.2%, as airlines continued to benefit from the strength of regional economies, including non-oil production sectors, and solid growth in business-related premium travel.
Capacity rose 6.9% and load factor climbed 4.4 percentage points to 78%.
In Latin American, airline passenger traffic rose 9.1%, while capacity rose 6% and load factor climbed 2.2 percentage points to 79.6%.
“The outlook for Latin American carriers remains broadly positive, with continued robust performances from economies like Colombia, Peru and Chile contributing to the strong demand environment,” Iata said.
Edited by: Tracy Hancock© Reuse this Comment Guidelines (150 word limit)
Other Aviation News
Updated 5 hours ago Protech Khuthele Holdings on Wednesday said, in a cautionary note to shareholders, that, as the failed company unwound, investigations were ongoing into its affairs. The company provided no indication of the completion date.
Updated 5 hours ago Private equity investors are increasingly becoming more active in Africa’s bid to narrow the $90-billion a year infrastructure funding gap constraining the continent’s growth. This was according to a survey by the Southern African Venture Capital and Private Equity...
Updated 5 hours ago The shortlist of innovations in the Africa Prize for Engineering Innovation was announced on Wednesday, comprising 12 new innovations from seven African countries. The shortlist announced by the UK’s Royal Academy of Engineering (RAEng) included innovations in...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
The latest TransUnion Vehicle Pricing Index (VPI) contains a number of small, but significant indications that the tide may at last be turning for the beleaguered used car industry. For the third successive quarter, used car inflation has increased on a year-on-year...
The South African new vehicle market is likely to reach around 630 000 units in 2014, down from the 650 000 units recorded in 2013, says Toyota South Africa Motors (TSAM) president and CEO Dr Johan van Zyl. Van Zyl is also president of the National Association of...
Efforts by the Kenya government to increase energy generation by 5 000 MW over the next three years received a major boost following the award of a $2-billion contract to build a coal power plant in Lamu. Despite allegations of irregular tendering process, the...
Using crafty wordplay on a well-known Internet meme, brilliant South African-born US entrepreneur and businessperson Elon Musk announced that Tesla Motors would not initiate patent lawsuits against anyone who, in good faith, wanted to use its technology. Instead,...
August new vehicle sales declined by 1.4%, to 55 722 units, compared with the same month last year. Assisted by the car rental market, the South African new passenger car market, at 37 953 units, contracted by 1 047 units, or 2.7%, compared with August last year.