September 2022, Virtual
September 29 2022, Virtual
Now in its 27th year, the Business Travel Awards
Demand for flights is set to accelerate across the world during the rest of 2013, according to the latest report on air traffic growth by IATA.
The association’s report found that traffic, as measured by total revenue passenger kilometres (RPKs), rose by 6.8 per cent in August compared to the same month in 2012 while load factors matched the record high of 83.4 per cent, which was previously set in July 2011.
IATA’s CEO Tony Tyler said: “August was a positive month for passenger travel. The solid performance was also supported by a stabilisation of emerging market weakness and renewed confidence in Europe and North America.
“Trading conditions are still tough with high oil prices, stiff competition and regulatory hurdles. But demand growth remains a bright spot with most indications pointing towards an acceleration in the fourth quarter.”
Traffic for European-based carriers rose by 5.4 per cent in August year-on-year on the back of a 3.7 per cent increase in capacity, which helped to push up load factor to 86.4 per cent.
“Aviation is the lifeblood of the global economy,” said Tyler. “It’s important for jobs and development that aviation’s growth is sustainable. That’s equally critical for its financial and environmental performance.”
He added that while profits for airlines remained “weak” they were moving in the “right direction”.
“In 2012 airlines made an average 1.1 per cent net profit margin - that is expected to double to 2.2 per cent in 2014,” said Tyler.
“Cost control, consolidation, joint ventures and product innovations are among the measures that are helping airlines achieve the efficiencies needed to secure their financial futures.”