Passenger air traffic growth wanes in June

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The growth in demand for international air travel slackened somewhat in June, industry data showed, under pressure from rising jet fuel prices and higher tax rates in some countries.

Total passenger traffic rose 4.4 percent year-on-year in June but freight demand was 3 percent lower compared with the year earlier period, the International Air Transport Association (IATA) said on Thursday.
“The trend for passenger travel remains upwards, but at a slower pace than the post recession rebound, which was at an annual rate close to 10 percent,” it said.

Regional growth patterns were shifting, said Tony Tyler, Director General and CEO of IATA, which represents over 240 airlines.
“The Middle East carriers have moderated to a single digit expansion and tighter economic conditions have slowed China’s growth. Meanwhile, Latin America is leading the industry expansion followed by Europe which is growing strongly despite its currency crisis.”



While world trade is expanding at 7 percent a year, that expansion was in modes of transport other than air, IATA said. Freight volumes have not grown in nearly a year, it added.