Air Travel Slows in July

The IATA (the International Air Transport Association)’s figures for July show that global air passenger demand growth is slowing. In Europe carriers reported growth in demand (revenue passenger kilometres) of 4.8 percent from that in July 2011, down from 7.3 percent in June and down from the average 6.5 percent growth for the period January to June. According to IATA, “Despite the recession in many European home markets, airlines from the region have been able to sustain growth on long-haul markets to regions where economic growth is stronger.”

Tony Tyler, IATA’s director general and CEO, said, “The uncertain economic outlook is having a negative impact on demand for air transport.

“Passenger markets — with the exception of Africa, China-domestic and the Middle East — saw demand fall from June to July. Overall passenger demand is still up 3.4% on the previous July. But the growth trend is clearly slowing. This, along with rising fuel prices is likely to make it a tough second half of the year.”

According to figures released by the Guild of Travel Management Companies (GTMC) , air bookings in July fell by 1.05 percent amongst all UK agencies and 3.91 percent for GTMC members (who account for approximately 80 percent of all UK business travel). The average value per air transaction for GTMC members fell five percent from that in July 2011. The Guild believes that an “Olympic effect” could be one of the factors affecting the fall.

Hard Times ahead.