Times of Oman
Price in RO
24ct / gm
22ct / gm
Forex Rates vs R01
Back to Homepage
Mideast carriers lead global uptick in passenger traffic
Times News Service
September 04, 2013 , 10 : 06 pm GST
SAVE THIS ARTICLE
Tony Tyler. Photo – Bloomberg News
Middle East carriers experienced the highest growth rate in passenger traffic for any region, with July traffic up by 7.8 per cent compared to a year ago.
While this is a fall-off from even higher year-over-year growth in June (12.1 per cent), part of the decline can be attributed to the timing of Ramadan, which has a dampening effect on demand, said the International Air Transport Association (IATA) yesterday.
"In 2013, Ramadan spanned most of July whereas in 2012, it occurred mostly in August.
Capacity growth of 10.5 per cent sent load factors down two percentage points to 78.3 per cent," the report added.
The IATA said that demand for air travel across the world recorded another solid month of growth in July. Overall revenue passenger kilometers (RPKs) were up 5 per cent compared to July 2012. All regions were up year-on-year, with emerging markets recording the strongest growth. Capacity rose 5.5 per cent on the previous July, ahead of demand, and industry load factor dropped 0.4 percentage points to 82.4 per cent.
Although July's 5 per cent performance was not as strong as June's (6.1 per cent), this likely reflects both a market correction in line with prevailing economic conditions as well as the impact of reduced travel in markets observing the Ramadan period.
"Passenger demand continues to be strong. But the story of emerging markets driving growth as developed economies stagnate could be shifting. We are still expecting growth of 5 per cent this year. How that growth is achieved, however, appears to be at a turning point," said Tony Tyler, IATA director-general and the chief executive.
"The emergence of the eurozone from an 18-month recession provided the biggest boost to traffic over recent months."
In contrast, the deceleration of the Chinese economy has been a dampener on air travel, with weakness showing up throughout emerging Asian markets.
International passenger traffic in July climbed 5.1 per cent compared to the year-ago period. Capacity rose slightly faster at 5.4 per cent, causing load factor to slip 0.2 percentage points to 82.7 per cent. Performance across all regions was positive.
Asia-Pacific carriers' July traffic was up 6.3 per cent on a year ago. Capacity rose 6.6 per cent and load factor dipped 0.2 points to 79.5 per cent. The support for growth at this rate is weakening.
The region's largest economy — China — continued to decelerate in the second quarter. With trade volumes in emerging Asian markets shrinking by almost 5 per cent over the first half of the year, the softness is not isolated to China. In particular, India's near term growth prospects are looking bleak.
European carriers recorded a 3.7 per cent increase in demand compared to July 2012, in line with year-to-date growth.
Rate this Article
Rates : 0, Average : 0
Latest in this section
Asian markets mostly lower after upbeat US data
Singapore banks told to boost security after StanChart data theft
World Bank says universal health coverage key in growth
India defiant as food impasse imperils WTO
Beijing second costliest Asian city for expats: Survey
Post a Comment
Did you like this section? Leave a comment!
Your Name :
Your Email Address :
Your Comment :
Enter ImageText here:
No Comments Posted
TOP RATED ARTICLES
The rainbow over the desert sky
Saleh Al Shaibany
India lifts anti-dumping duty on Oman’s polypropylene export
Filipino expats in Oman raise funds for Haiyan victims
Times News Service
‘Sohar Port meets pollution norms’
Fahad Al Mukrashi
Two sentenced to jail in Sohar for corruption
More in News
How to choose your writing form and communicate your creative thoughts
Natasja Engholm - Special to Times of Oman
Indonesia's illegal dentists bite back after ban
Albanian cannabis fiefdom at heart of European traffic
Asia's animators draw inspiration from Miyazaki
Splash 'Forever More'
Times News Service
More in Features
Of Middle East and the Arab winter
France ill at ease with US policy shift in M-E
The harsh reality of mass migration from Syria
Blind obsession with celebrities
Jayanta G Borpujari
Sisi is making Egypt a dangerous place
More in Columns
Get Top news by E-mail.
Copyright © 2012 Muscat Press & Publishing House SAOC. All rights reserved. Times of Oman is not responsible for the content of external internet sites.
For reprint rights contact:
TOO Online Editorial