Khaleej Times

ME air traffic inches up

- Issac John — issacjohn@khaleejtim­es.com

dubai — Middle East carriers reported a 1.8 per cent rise in demand in September, which was a four-month low, according to air passenger traffic data released by the Internatio­nal Air Transport Associatio­n (Iata) on Wednesday.

The volatility in the region’s growth rate mainly reflects the developmen­ts in 2017 such as the cabin ban on large portable electronic devices and the proposed travel bans to the US. Capacity rose 5.3 per cent, and load factor fell 2.4 percentage points to 72.3 per cent, Iata said.

Globally, passenger demand, measured in revenue passenger kilometres (RPKs), rose 5.5 per cent compared to the same month in 2017.

“This was a slowdown from the 6.4 per cent growth recorded in August year-over-year. Capacity climbed 5.8 per cent and load factor slipped for the first time in eight months, down 0.3 percentage point compared to the yearearlie­r period, to 81.4 per cent,” said Alexandre de Juniac, the Iata’s director-general and CEO.

According to Iata estimate, the impacts from severe hurricane and typhoon activity in September shaved around 0.1-0.2 percentage point off expected growth. However, even after accounting for these impacts, monthly traffic demand was below the 6.7 per cent year-to-date pace.

“While September’s traffic growth was in line with the longterm average, it represents a moderation compared to recent months. This is likely due to the anticipate­d reduced demand boost from lower airfares caused by rising airline cost pressures, particular­ly fuel. Heightened uncertaint­y about trade policies and mounting protection­ist policies may also be having an impact,” said de Juniac.

Internatio­nal RPKs climbed 4.9 per cent with airlines in all regions recording growth compared to 2017. Total capacity climbed 5.1 per cent, and load factor dipped 0.1 percentage point to 81.2 per cent.

Domestic demand globally climbed 6.5 per cent in September compared to September 2017, which was a slowdown compared to 7.5 per cent year-over-year growth in August. This was partly owing to afore-mentioned weather-related disruption­s.

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