Falling confidence blamed for slowdown

Falling confidence blamed for slowdown
By admin

A dip in consumer confidence has been blamed for weaker air travel demand which saw growth slow to just 2% between February and June.

The latest International Air Transport Association (IATA) results show year on year demand for air travel increased 6.2% in June itself. Capacity climbed 4.5% with load factors at 81%.

But the apparently healthy figures hide an underlying growth slowdown, IATA said.

While the figures are up on last year’s results, the latest report slows sluggish comparative growth.

Demand from February to June increased two percent, down from 8% between mid-2011 and January 2011. International passenger markets also slowed from 2% growth in the second quarter of 2012 to just 0.2% from May to June this year.

Noting that some markets posted “very weak” performance this year, IATA chief executive Tony Tyler said economic uncertainty and weakened consumer confidence was to blame.

“The uncertainty that we see in the global economic situation is being reflected in air transport’s performance,” he said, adding that passenger markets had slowed from the beginning of the year.

“The net effect is a demand limbo as consumers and businesses hedge their spending while awaiting clarity on the European economic front,” he said.

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

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