Global air travel to improve

Global air travel to improve
By admin


Global growth in all classes of travel tipped 4.5% in August despite weak markets in Asia and flat improvements in June and July, according to the latest data from International Air Transport Association (IATA).

According to a report in The Australian, the IATA findings reflected adverse developments in specific Asian nations, insetad of a global whole, with the Association citing the impact of Malaysia Airlines’ MH370 and MH17 as well as Thailand’s political unrest.

“If this improvement continues, which is the consensus view now, then we would expect international air travel growth to accelerate during the second half of this year,’’ IATA said in its premium travel monitor, the paper reported.

For the first eight months this year, premium air travel increased 3.9%, a slightly faster rate than economy at 3.7%, both trending upwards from 2012.

 The rising share of premium seats has been supported by stronger growth in longer-haul markets,’’ IATA said, as reported by the paper.

“This in turn has helped support premium yields, as longer-haul markets drive the greatest share of premium revenues.

“This has helped the financial performance of the longer-haul network airlines, compared to shorter-haul mainly leisure travel focused airlines in some, though not all, regions.’’

Traffic within inter-Asia improved 0.3% compared year-on-year, with a year-to-date growth a low 0.4%, according to IATA.

“The results we are currently seeing are difficult to explain when looking at the major economies in the region, namely China,’’ IATA said, the paper reported.

“The Chinese economy has been managed onto a slower growth path, as the government seeks to move away from the earlier investment-led growth, but recent business confidence data suggests economic activity is starting to show signs of improvement.

“The slowdown in the Far East market has been caused by notable declines in international travel for Thailand and Malaysia.

“The Thai economy is expected to eventually stabilise after the military coup in May, but latest data show significant falls in tourism and exports during recent months when compared to a year ago.

“In addition, Malaysia has experienced declining tourism activity following the MH370 and MH17 tragedies.’’

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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