ASIA Travel Tips.com

 

Airline Passenger Growth in June 2008 Hits Five-Year Low

Search ASIA Travel Tips .com Latest Travel News Send to Friend Thursday, 7 August 2008

IATA's international traffic data for June 2008 shows a continued slowing of demand growth for air transport. Cargo contracted by 0.8% compared to June 2007. Passenger demand growth fell to 3.8%, the lowest level since 2003. Passenger load factors dropped to 77.6%, 1.2 percentage points below the 78.8% recorded for June 2007.

“The global economic turbulence clearly shows in the 0.8% drop in freight volumes compared to last year. Although the passenger demand grew by 3.8%, this is the slowest growth that we have seen since the industry was hit by the SARS crisis in 2003. With consumer and business confidence falling and sky-high oil prices, the situation will get a lot worse,” said Giovanni Bisignani, Director General and CEO of IATA.

Passenger Traffic

- Global passenger traffic growth of 3.8% is well below the 5.4% recorded year-to-date.

- Capacity growth of 5.5% outstripped demand, pushing the passenger load factor down to 77.6%

- North American airlines saw demand growth drop to 4.4% (sharply down from the 8.2% growth recorded in May). Domestic traffic in the US contracted by almost 4%. 

- European airlines saw demand drop to 2.1% (compared to 4.1% in May). Declines in business confidence and industrial production in key European economies may well drive this further down.

- Asia Pacific airlines saw their international passenger traffic growth fall to 3.2% in June from 4.5% in May, influenced by weakening long haul destination economies and inflation concerns.

- Middle Eastern carriers saw their traffic growth slow to 9.6% June from 12.8% in May. This is sharply down from the 18.1% recorded in June 2007.

- Latin American carriers turned in the strongest performance with 12.5% growth. Strong commodity-driven economic growth in Latin America is the driving force.

Cargo Traffic

- International freight traffic declined -0.8% in June. This is the first decline seen since May 2005 and follows several months of falling manufacturing sector confidence indicators. 

- Asia Pacific airlines led the contraction with a -4.8% year-on-year decline for June traffic. 

- Latin American airlines recorded the largest contraction (12.7%) as the region’s cargo sector continues to re-structure its capacity.

- European carriers saw freight demand growth fall to 0.7% in June from 1.4% in May.

- North American carriers also saw freight demand growth slow to 4.0% in June from 4.6% in May.

- Middle Eastern carriers delivered the strongest performance with 12.1% growth (up slightly from the 10.7% recorded in May).

- African airlines recorded a -1.9% year-on-year decline in June.

“The airline sector is in trouble. Losses this year could reach US$6.1 billion, more than wiping out the US$5.6 billion that airlines made in 2007. Falling demand and rising costs are re-shaping the industry,” said Bisignani. “To survive the crisis, urgent action is needed. Airports and air navigation service providers must come to the table with efficiencies that deliver cost savings. Labour must understand that efficiency is the only path to job security. And governments must stop crazy taxation and give airlines the freedom to merge and consolidate where it makes business sense.”

See other recent news regarding: Airlines, Aviation, Flights, HotelsPromotions, New Hotels, IATA, Traffic, June 2008, Visitor Arrivals

Subscribe to our Latest Travel News Daily Email Free of Charge by simply entering your email address to the right. You can also stay updated with our RSS Feed Free Travel News RSS Feed and even add the travel news to your website. Have questions? Please read our travel news FAQ.
     
Sustainable Hotels and MICE. Exclusive HD video interview with Grace Kang, Managing Partner of Greenview Hospitality. Criteo Travel Flash Report 2016. Exclusive HD video interview with Mr. Daniele Beccari, Global Head of Travel at Criteo. Chef Fernando Arevalo, originally from Bogota, Colombia, worked his culinary magic in New York and Hong Kong before moving to Singapore where he is today the Executive Chef of Artemis Grill on the 40th floor of Singapore's newest green building - CapitaGreen.
Sustainable Hotels and MICE Criteo Travel Flash Report Colombian Chef in Singapore
Exclusive HD video interview with Mr. Hiroshi Sawabe, Executive Director of the Office of International Tourism, at JATA (Japan Association of Travel Agents). In this interview filmed on 24 September at the JATA Tourism Expo 2016 in Tokyo, Japan, Mr. Sawabe speaks to Steven Howard of TravelNewsAsia about the status of tourism within the country. HD Videos from Sabre's Travel Technology Exchange APAC 2016. Sabre, a leading technology provider to the global travel industry, hosted over 500 members of the Asia Pacific travel industry at its inaugural Asia Pacific Travel Technology Exchange (TTX) conference in Beijing from 21 to 24 September 2016 Spa and Wellness Industry - HD Video Interview with MD of Thailand-based Destination Spa Management, Joy Menzies.
Japan Tourism Update Sabre TTX APAC 2016 Destination Spa Management
Jonathan Wigley, CEO of Travelodge Thailand, outlines expansion plans in HD Video Interview. Exclusive HD video interview with Myanmar's Minister of Tourism and Hotels, H.E. U Ohn Maung, about the status of tourism in the beautiful and mystical country of Myanmar (formerly known as Burma). Birth of a Luxury Thai Hotel Brand - HD Video Interview with Christopher E. Stafford, Chief Operating Officer of the newly formed 137 Pillars Hotels & Resorts.
CEO of Travelodge Thailand Myanmar Tourism Update Birth of Luxury Thai Hotel Brand
This HD video tour of Thai AirAsia X's brand new 337-seat Airbus A330-300 aircraft was filmed at Don Mueang Airport in Bangkok, Thailand on 14 May 2014  Exclusive HD video interview with Jaime J. Bautista, President & Chief Operating Officer (COO) of Philippine Airlines (PAL) HD video of the interior and exterior of a Thai Vietjet Airbus A320-200.
Thai AirAsia X A330-300 PAL President & COO Thai Vietjet A320-200
Inside Qatar Airways Boeing 787-8 Dreamliner - HD Video It takes 800 workers between 65 and 80 days to assemble, install, test, paint, furnish and deliver an Emirates Airbus A380. Showers, Bars, Lounge - The Emirates Airbus A380 Has Them All - HD Video Tour Thai Airways International Takes Delivery of Brand New Boeing 777-300ER
Qatar Airways B787 Emirates A380 Thai Airways B777-300ER

Latest Travel News
Advertising
Advertising

 
Copyright © 1997-2016 ASIATravelTips.com/TravelNewsAsia.com