http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: 0.02
R/$ = 10.70Change: 0.04
Au 1276.71 $/ozChange: 1.76
Pt 1417.00 $/ozChange: -3.20
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 03, 2014

African airlines show slowest passenger demand growth in May

Back
Photo: Bloomberg
Africa|Capacity|Industrial|Africa|Europe|Chile|Colombia|Peru|South Africa|Air Travel Demand|Product|Transport|Iata|Tony Tyler|Asia Pacific
Africa|Industrial|Africa|||Transport||
africa-company|capacity-company|industrial|africa|europe|chile|colombia|peru|south-africa|air-travel-demand|product|transport-industry-term|iata-person|tony-tyler|asia-pacific
More Insight
© Reuse this



African airlines experienced the slowest regional growth in passenger demand in May, up 1.9% year-on-year, despite a capacity increase of 4.7% over the period, while the continent’s load factor took a 1.8 percentage-point knock to 64.4%.

“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)
 
 
 
 
 
 
 
 
 
Latest News
Updated 7 hours ago Construction, mining, development and engineering group Basil Read on Thursday announced that it expected a loss a share for the six months ended June 30, of between 131.18c and 160.33c, compared with the 198.28c earnings a share in the prior corresponding period....
Updated 7 hours ago JSE-listed Group Five on Thursday said it had secured a three-year R4-billion engineering, procurement and construction contract for the design and build of a 350 MW gas- and oil-fired combined cycle power plant in Ghana. Ghana-based Cenpower Generation would issue...
Phumulo Masualle and Naledi Pandor
Updated 7 hours ago The East London industrial development zone (Elidz) on Thursday afternoon officially launched its Science and Technology Park (STP), which is aimed at speeding up the pace of economic development in the Eastern Cape. The STP’s location within the Elidz was expected...
More
 
 
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...
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 Built Environment unit at the Council for Scientific and Industrial Research (CSIR) has developed a cost-competitive ultrathin concrete pavement surface that, for the upgrading of unpaved roads to paved roads, is more durable than many other pavement alternatives...
The Southern African Large Telescope (SALT), based at Sutherland in the Karoo region in the Northern Cape province, is promising to become an important instrument for research into dark matter. "SALT is shaping up to be very important for answering questions about...
HENK SNYMAN TDM supports broader industrial activity that has a multiplier-effect on the potential to beneficiate raw materials in many industries
The South African tool, die and mouldmaking (TDM) industry is being revitalised to locally produce the tools, dies, moulds and fixtures required by the manufacturing sector. Local TDM capability is key to enable the manufacturing industry to remain competitive, says...
Misfortune often finds its roots in the smallest of things. Such as a centimetre or two. Or is that in inch? Perhaps a foot? Swedish or Dutch? The French had reason to blush in May as it became apparent that national rail operator SNCF had ordered 2 000 trains that...
The repositioning of the Fibre Processing & Manufacturing Sector Education and Training Authority (FP&M Seta) and its business processes will ensure improved performance in reaching strategic targets and in providing customer service.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks