The rise in demand for air travel softened in June 2011, the latest figures from the International Air Transport Association (IATA) reveal.
Last month air passenger traffic grew 4.4%, compared to June 2010.
The figure represents a slackening pace in the recovery of the aviation industry, reflecting slower economic growth and increased fuel costs, according to IATA’s CEO Tony Tyler.
“Compared to May both passenger and cargo markets contracted by about 1%,” he said. “For passenger traffic, this is a speed-bump in a gradual post recession improvement.”
Of the regions, Latin American carriers performed the strongest, with a 14.3% increase in June 2011 compared to June 2010, despite disruptions following the eruption of a volcano in Chile.
Airlines from the Asia Pacific region experienced a growth in demand of 3.3%. The region continues to feel the effects of the earthquake and tsunami in Japan.
European carriers took second place in terms of growth, with a rise in demand of 8.9%, followed by Middle Eastern carriers which recorded an increase of 6.4%.
North American airlines saw growth of 2.4% over the period, but tight capacity discipline meant they recorded the highest load factor (85.3%) globally.
African carriers were the only group to see a fall in demand year-on-year for June. The 2.9% reduction was driven by continued political unrest in North Africa, according to IATA.
Tyler reflected that while regional growth patterns are shifting, rising fuel prices are putting pressure on the bottom line for all airlines globally.
“The average price for the second quarter was $133/barrel which is an increase of $10 over the first quarter. With an expected profit margin of only 0.7%, the ability of airlines to recoup this cost is critical to staying in the black for the year,” he said.
“Slower economic growth makes these challenges all the more difficult. It is certainly not the time to burden the industry with increases in other costs, including taxation,” said Tyler.
IATA has forecast that the aviation industry will make a profit of $4 billion in 2011, a 78% fall on the $18 billion airlines made in 2010.