IATA warns of fragile outlook

IATA warns of fragile outlook
By admin


The International Air Transport Association (IATA) has accused “ill-conceived” government policies of holding the aviation industry back as the first quarter ended on an uncertain note.

IATA director general and chief executive Tony Tyler conceded that fears of a Eurozone crisis had subsided but highlighted a number of “political risks” that had sprung up in their place.
The rapidly rising cost of fuel was “biting hard,” he said, with a hike to the UK’s Air Passenger Duty proving an additional burden. The European emissions trading scheme’s inclusion of international aviation was also cause for concern, creating the possibility of a costly “trade war”.
“Around the world we see ill-conceived policy initiatives that over-regulate, excessively tax or otherwise restrain the aviation industry,” Tyler said. “This prevents it from being the catalyst for economic growth that it should be.”
Meanwhile, Asia Pacific was the only region that did not see demand expand ahead of capacity in February, according to the latest IATA figures.
Carriers in the region saw a 5.9% increase in demand in February, as capacity grew 6.2%. Load factors averaged 75.4% for the month, above the global average of 74.4%.
Global results showed an 8.6% improvement in passenger demand compared with February 2011. However, Tyler stressed that figures had been artificially inflated by weaker traffic during the Arab Spring a year ago and Brazil’s Carnival which fell in February this year, a month earlier than in 2011.
“Improvements in business confidence slowed in February,” he said. “This will limit the potential for business class travel growth.”

Latest News

  • Tour Operators

TTC’s hosting a masterclass series for Aussie agents unlocking the secrets of its five brands

TTC Tour Brands is hosting a Masterclass series this May and June to make it ‘easy-as’ for agents to unlock all the tips and tricks of selling across its five brands. Across weekly Wednesday sessions TTC Tour Brands is shining a spotlight on selling its brands and Groups. Each Masterclass will provide a 15–20-minute key insight session […]

  • Destinations

Tropical North Queensland action-packed events calendar for adventure enthusiasts

Sporting enthusiasts and adventure seekers are gearing up for an action-packed year in Tropical North Queensland, with a lineup of sports events and adrenaline-pumping experiences set to take centre stage in 2024. Leading the charge is the highly-anticipated return of the Crankworx World Tour ‘Paradise Edition’ to Cairns from 22-26 May 2024. The mountain biking […]

  • Travel Agents

Disney Days returns with Inside Out 2 showing in Sydney, Brisbane, Melbourne and Auckland

Time is running out for agents to register their Expression of Interest to an exclusive screening of the much-anticipated Disney and Pixar film, Inside Out 2, hosted by Disney Destinations Australia/New Zealand team and partner United Airlines. Places are limited and applications must be in by 17 May. In addition to the screening of the […]