Although international air travel was 3.6% higher in July year-to-date, passenger numbers have contracted slightly between December and July.
IATA’s assessment of premium and economy travel in July.
Key points:
- Growth in international air passengers was weak for a second consecutive month with a 2.6% increase in July compared to a year ago – premium seat numbers rose only slightly more, 3.0%;
- Although international air travel was 3.6% higher in July year-to-date, passenger numbers have contracted slightly between December and July;
- Part of the ‘year-to-date’ growth took place last year, when business activity and trade grew strongly;
- And while there was some (albeit slower) growth between December and May, there has been a notable weakening during the last two months, flattening the growth trend in international passenger numbers in 2014;
- This weakness comes despite recent improvement in trade and business confidence, which both weakened in Q1;
- The slowdown is largely limited to the within Far East market and markets connected to South America;
- Economic and politic turmoil in Thailand has damaged tourism demand over recent months and Malaysia air travel has been impacted by tragedies related to the flag carrier;
- The North America – South America market has been hit by capacity cuts to Venezuela as well as weakness in key economies like Brazil and Argentina;
- By contrast, longer-haul markets have been performing strongly, which has supported yields and explains why international RPKs are growing much faster than passenger numbers.
IATA Premium Traffic Monitor – July 2014
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
