The recent weakening of the Eurozone economy may be starting to have negative impacts on air travel demand, with a rise of just 2.3% for the within Europe market – slower than the trend so far this year (3.6%).
Key points:
- Growth in international air passengers slowed in September, rising 2.3% compared to a year ago – a weaker increase than the 4.5% achieved in August. Premium and economy passenger numbers were up by the same rate in September, 2.3%;
- There was also a decline in passenger numbers in September compared to August. Part of that is a correction in volumes after the strong increase in August compared to July – importantly, the overall trend remains positive;
- But there is also a more fundamental weakening the positive growth trend, with latest data showing widespread slowing in major economies at the start of Q4;
- The within Far East market remains weak, contracting 1.6% in September year-on-year. Air travel declines in Thailand and Malaysia and now being compounded by setbacks in the Chinese economy;
- The recent weakening of the Eurozone economy may be starting to have negative impacts on air travel demand, with a rise of just 2.3% for the within Europe market – slower than the trend so far this year (3.6%);
- Longer-haul markets have been performing relatively more strongly, including the North Atlantic and North and Mid Pacific, which explains why international RPKs are growing much faster than passenger numbers.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
