Subscribe Free
in Business & Finance

Middle East carriers show weak growth in January

Posted 8 March 2018 · Add Comment

The International Air Transport Association (IATA) announced global passenger traffic results for January 2018 showing traffic (revenue passenger kilometers or RPKs) rose 4.6% compared to January 2017.

This was the slowest year-over-year increase in nearly four years, but results were affected by temporary factors including the later timing of the Lunar New Year in 2018 as well as less favorable comparisons with the strong upward trend in traffic seen in late 2016-early 2017.

IATA estimates the impact of the later Lunar New Year-related travel period holiday represented around two-fifths of the slowdown in year-over-year growth for the month. January capacity (available seat kilometers or ASKs) rose 5.3%, and load factor slipped half a percentage point to 79.6%.

"Despite the slower start, economic momentum is supporting rising passenger demand in 2018. That said, concerns over a possible trade war involving the US could have a serious dampening effect on global market confidence, spilling over into demand for air travel," said Alexandre de Juniac, IATA’s Director General and CEO.

Middle East carriers had the weakest growth, with demand up just 0.5% compared to January 2017, the slowest pace since September 2008. The market to/from North America has been especially hard hit owing to factors including the temporary ban on large portable electronic devices as well as the proposed travel bans to the US from some countries in the region. Capacity climbed 4.6% and load factor fell 3.1 percentage points to 76.8%. 

International Passenger Markets 

International passenger demand growth slowed to 4.4% in January, from 6.1% in December, with all regions recording growth, led by Latin America and Europe. Capacity rose 5.3% and load factor dipped 0.7 percentage point to 79.6%.

Asia-Pacific carriers recorded a demand increase of 4.6% compared to January 2017, which was a 46-month low. This largely was owing to the impact of the later Lunar New Year, which fell in mid-February this year. Capacity rose 6.1%, and load factor dropped 1.2 percentage points to 80.4%.

European carriers’ international traffic climbed 6.0% in January compared to the year-ago period, up from 5.8% growth in December 2017. The region was the only one to see an acceleration in traffic compared to the prior month. This is being supported by the buoyant economic conditions in the region. Capacity rose 5.0% and load factor was up 0.7 percentage point to 80.8%. 

North American airlines experienced a 3.5% rise in traffic over a year ago, but capacity rose 4.3% and load factor dipped 0.7 percentage point compared to a year ago to 79.6%. The relatively healthy economic backdrop in the region is helping support outbound demand but this is being partly offset by a negative impact on inbound traffic to the US. 

Latin American airlines’ traffic climbed 7.3% in January compared to January 2017, strongest among the regions. Capacity rose 8.2%, however, and load factor slipped 0.7 percentage point to 82.6%, which still was the highest among the regions. Stronger economic conditions in Europe are helping support rising demand on the market between Europe and South America in particular. 

African airlines saw January traffic rise 4.9% against a mixed backdrop for the region’s largest economies. In Nigeria, business confidence has risen sharply while in South Africa, political uncertainly continues to inflict an economic toll. The region’s capacity rose 4.2%, and load factor edged up 0.5 percentage point to 70.3%. 

 

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Emirates to link Phnom Penh and Bangkok with new daily service

The service from Dubai to Phnom Penh, via Bangkok, will provide passengers travelling between the capital cities of Cambodia and Thailand with more flight options.

Emirates celebrates 20 years of services to Lahore and Islamabad

Emirates has marked 20 years of successful operations in Lahore and Islamabad, two of Pakistan’s most populous cities. The airline has recorded solid year-on-year growth in Lahore and Islamabad over the years, carrying more than 8.4

Etihad Airways to deploy latest generation 787 Dreamliners on flights to China

Etihad Airways will introduce the Boeing 787-9 Dreamliner on its daily service from Abu Dhabi to Chengdu, effective 1 July 2019, replacing the Airbus A330-200 currently operating the route. Also from 1 July, the airlines’ daily service

Etihad Airways Engineering joins forces with Fabrica Argentina de Aviones

Etihad Airways Engineering has signed a collaboration agreement with Argentina’s main aircraft manufacturer, Fabrica Argentina de Aviones (FAdeA), to serve MRO customers in South America.

Upswing in investments in Middle East for efficient Air Traffic Control

The airline industry made history by registering its busiest day ever when a record-making 202,157 flights were monitored criss-crossing the skies the world over in June last year. More than 19,000 flights at once at the day’s peak were

Defence spending on the up in the Middle East

The Middle East is cited by Deloitte as one of the key regions that are expected to contribute to industry performance in the near term, in its 2019 global aerospace and defence industry outlook. It states that defence spending in the

Connect MEIA SK1402010519
See us at
ACCA19_BT2141218280219SaudiAirshowBT0711140319IQPC 3CACBT290150319Connect MEIA BT1402010519Aviation Africa BT0607280219