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ATA: Mideast carriers record strongest traffic growth
The new Airbus A 350 of Qatar Airways approaches the gate at the airport in Frankfurt, Germany. (AP)
JEDDAH: ARAB NEWSThe new Airbus A 350 of Qatar Airways approaches the gate at the airport in Frankfurt, Germany. (AP)
Published — Friday 6 February 2015
Last update 6 February 2015 9:59 pm
The International Air Transport Association (IATA) has announced global passenger traffic results for 2014 showing demand (revenue passenger kilometers or RPKs) rose 5.9 percent compared to 2013.
Capacity rose 5.6 percent last year, with the result that load factor climbed 0.2 percentage points to 79.7 percent. All regions saw demand grow in 2014, according to an IATA statement.
It said that more than half of the growth in passenger travel occurred on airlines in emerging markets including Asia-Pacific and the Middle East. In recent months, domestic market growth played a large role in driving growth. This is owed mainly to a pick-up in Chinese domestic travel which expanded by some 11 percent in 2014 over the previous year.
International passenger markets
International passenger traffic rose 6.1 percent in 2014 compared to 2013. Capacity rose 6.4 percent and load factor slipped 0.1 percentage points to 79.2 percent.
Asia Pacific carriers recorded an increase of 5.8 percent compared to 2013, which was the largest increase among the three biggest regions. However, traffic has been broadly flat over the past four months or so amid signs of a slowdown in regional production activity, although trade volumes have remained strong. Capacity rose 7.0 percent, pushing down load factor 1.1 percentage points to 76.9 percent.
European carriers’ international traffic climbed 5.7 percent in 2014. Capacity rose 5.2 percent and load factor rose 0.6 percentage points 81.6 percent. Robust travel on low fare airlines as well as airlines registered in Turkey offset economic weakness and risks in the region.
North American airlines saw demand rise 3.1 percent in 2014 over 2013. Among developed economies, the US is the standout performer. Capacity rose 4.6 percent, dropping load factor 1.1 percentage points to 81.7 percent. This was the highest among all regions.
Middle East carriers had the strongest annual traffic growth at 13 percent. The region’s economies continue to show robust growth in non-oil sectors, and are therefore well-placed to withstand the plunge in oil revenues. Capacity rose 11.9 percent and load factor climbed 0.8 percentage points to 78.1 percent.
Latin American airlines’ traffic rose 5.8 percent. Capacity rose 4.7 percent and load factor climbed 0.8 percentage points to 80 percent. While Brazilian economic growth has stagnated, regional trade volumes have improved in recent months.
African airlines experienced the slowest annual demand growth, up 0.9 percent compared to 2013. With capacity up 3.0 percent, load factor fell 1.5 percentage points to 67.5 percent, the lowest among the regions. The weakness in international air travel for regional carriers is not believed to be attributable to the Ebola outbreak, the impact of which has been restricted largely to Guinea, Liberia and Sierra Leone, markets that comprise a very small proportion of traffic. Instead it appears to reflect negative economic developments in parts of the continent including Nigeria, which is highly reliant on oil revenues. South Africa also experienced weakness earlier in the year.
The Bottom Line
“In the aftermath of the Greek elections and the intensifying debate on how to deliver a dynamic economic program for Europe, we must not forget the power of air connectivity to create growth,” said Tyler.
He said: “Governments can kick-start economic development by reducing the passenger taxes that depress demand for air transport, costing jobs and prosperity. There are some positive signs. The Scottish government is promising to cut its air passenger duty by 50 percent. And Austria’s air transport levy is being evaluated as part of comprehensive tax reforms. Scrapping the Austrian levy alone could create some 3,300 jobs. That should help convince politicians in these countries to move from considering reductions to delivering results.”
Tyler said: “High taxes, onerous regulation and infrastructure limitations make Europe a tough place to run an airline. A continent-wide commitment to address these issues so that aviation can play its critical role as an economic catalyst would be a powerful signal that Europe’s politicians really do mean business.”
IATA: Mideast carriers recordstrongest traffic growth | Arab News
Middle East here equals GCC airlines & Turkish Airlines.