Freight and capacity volumes increase for Middle East airlines during August AVIATION
Middle East carriers’ year-onyear freight volumes increased 14.1 per cent in August and capacity increased 2.8 per cent, the International Air Transport Association (Iata) said.
The strong pick-up in demand largely reflects favourable comparisons to a shortlived weak patch in 2016 rather than an acceleration in the current demand trend. Seasonally adjusted international freight volumes have maintained their solid upward trend.
“However, amid strong competition from other region’s carriers particularly on the Asia-Europe route, the Middle East carriers are not seeing as strong a pick-up in the seasonally-adjusted traffic trend as other regions’ carriers,” Iata added.
Global air freight markets demand, measured in freight tonne kilometres, increased by 12.1 per cent in August, compared with a year earlier. This was the fifth time in six months of double-digit gains on the previous year’s performance. Demand is growing at exceptional speed when compared to the five-year average growth rate of 4.4 per cent.
Freight capacity, measured in available freight tonne kilometres, grew by 4.7 per cent yearon-year. Demand growth continues to significantly outstrip capacity growth, which is positive for industry load factors, yields, and financial performance, Iata said.
Meanwhile, Middle East carriers posted a 5.5 per cent increase in August passenger traffic over August last year, well below the five-year average pace of 11.1 per cent.
The Middle East-to-North America market in particular has been hit by a combination of factors, including the now-lifted cabin ban on large portable electronic devices, as well as a wider impact from the proposed travel bans to the US.
Traffic growth on the segment was already slowing in early 2017, in conjunction with an easing in the pace of growth of non-stop services flown by the largest Middle East airlines. Capacity increased 5.1 per cent, with load factor rising 0.3 percentage points to 81.4 per cent.
Iata said global demand (measured in total revenue passenger kilometres) climbed 7.2 per cent compared to the year-ago period. At the same time, the upward trend in seasonally-adjusted traffic has eased from the end of 2016. August capacity (available seat kilometres) increased by 6.3 per cent, and load factor climbed 0.7 percentage points to 84.5 per cent,
Middle East carriers posted a 5.5 per cent increase in August passenger traffic over August last year
which was just below the record for the month set in 2015.
“Following the strong summer traffic season in the Northern Hemisphere, 2017 is on course to be another year of strong traffic growth. However, some important demand drivers are easing, particularly lower fares. As we head towards the end of the year we still expect growth to continue, but potentially at a slower pace,” said Alexandre de Juniac, the Iata chief executive.
Traffic growth on the segment was already slowing in early 2017, as the pace of growth eased in non-stop services flown by Middle East airlines.