Geneva - Air travel markets expanded in June, but the trend in passenger traffic growth has slowed while global passenger markets were 6.2% higher in June than a year ago, but the annualized growth trend in air travel has been just 2% from early 2012 through to June, according to the International Air Transport Association’s latest data (IATA).
Air freight volumes increased by 0.6% in June compared to May, contributing to the minor recovery seen since late 2011 while seasonally adjusted June FTKs are about 2.5% above the 2011 year-end bottom.
The growth trend in North American air freight has accelerated over recent months, now Middle Eastern and North American airlines both contribute about 45% to the recovery in air freight.
International passenger markets expanded by 7.4% in June despite little progress in the growth trend with Middle Eastern airlines continuing to be the strongest performers.
On domestic passenger markets, India’s domestic travel contracted 0.7% in June year-on-year; but most other markets showed increase compared to a year ago.
Passenger load factors slipped further in June compared to May, while improvement in demand has helped support air freight load factors.
Recent declines in business confidence are weakening the growth trend in air travel, and potential slowdown in world trade momentum could undermine passenger and freight demand in coming months.