DOHA: The International Air Transport Association (IATA) announced global passenger traffic results for May showing strong demand growth compared to May 2014 for both domestic and international traffic. Total revenue passenger kilometers (RPKs) rose 6.9 percent, which was an improvement on the April year-over-year increase of 5.7 percent. May capacity (available seat kilometers or ASKs) increased by 6.5 percent, and load factor rose0.3percentage points to 79.3 percent.
“May results confirm that demand for connectivity remains robust, but there are possible storm clouds forming on the horizon. The financial crisis in Greece and recent weakness in regional trade activity in Asia-Pacific have the potential to dampen performance in these markets in the coming months” said Tony Tyler, IATA’s Director General and CEO.
Middle East carriers’ May demand soared 14.0 percent over the same month in 2014. The financial information service provider Markit’s measures of business activity in non-oil sectors continue to show improvement and point to strong growth. The result also could reflect some additional travel prior to the arrival of the month-long Ramadan period that began in June. Capacity rose 19.7 percent and load factor fell 3.7 percentage points to 74.6 percent.
International passenger demand rose 7.1 percent in May, compared to May 2014,with airlines in all regions except Africa recording growth. Total capacity climbed 6.7 percent, pushing load factor up0.3 percentage points to 78.4 percent.
Asia-Pacific airlines’ May traffic jumped 9.4 percent compared to the year-ago period. Capacity rose 6.8 percent and load factor climbed 1.8 percentage points to 76.0 percent. The strong performance occurred despite weakness in regional trade activity during recent months.
European carriers saw demand increase by 5.9 percent. Growth has been robust despite Europe’s economic woes; however a further worsening of the Greek financial crisis could bring this positive trend under significant pressure. Capacity climbed 4.1percent and load factor rose1.4 percentage points to 81.6 percent, highest among the regions.
North American airlines’ traffic rose 2.0 percent compared to Maya year ago, which was an improvement on the April rise of 0.7 percent.
Capacity climbed 4.2 percent and load factor fell 1.7 percentage points to 81.1 percent. Expectations for better economic performance in Q2 should support demand for air travel, but the strengthening dollar likely will continue to place downward pressure on international leisure travel to the US.
