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

Latest News

  • Aviation

Low-cost Indian carrier SpiceJet continues to burn cash

It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]

  • Attractions

SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024

AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]

  • Cruise

Silversea taps Barbara Biffi as senior vice president for global sales

Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]

  • Technology
  • Travel Agents

Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy

Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]