International air passenger growth drops

FLYING DROP: International passenger traffic growth at Middle Eastern airlines slowed in August. (Getty Images)

International passenger traffic growth at Middle Eastern airlines slowed to 4.3 percent in August from 5.3 percent in July, a sign that the region's carriers are not immune to the slowing global economy.

The August figure was well below the 10.6 percent increase recorded during the first six months of the year, according to data from the International Air Transport Association (IATA) released on Tuesday.

Passenger demand growth fell to 1.3 percent from 1.9 percent in July, while passenger load factors fell to 79.2 percent from 81 percent on the year.

“The industry crisis is deepening and no region is immune,” said IATA Director General and CEO Giovanni Bisignani.

“While the drop in the oil price is welcome relief on the cost side, fuel remains 30 percent higher than a year ago. And with traffic growth continuing to decline, the industry is still heading for a $5.2 billion loss this year."

International freight traffic saw its third consecutive month of contraction with a 2.7 percent decline, following drops of 1.9 percent in July and 0.8 percent in June.

“Airlines carry 35% by value of the goods traded internationally. The three-month decline, led by weakness in Asia-Pacific markets, is a clear indication that global trade is slowing down,” Bisignani said.

Earlier this month, IATA said that Middle Eastern airlines will post a 33 percent drop in profits this year to $200 million, and that the global business environment will remain difficult in 2009.

Despite the gloomy backdrop, Abu Dhabi national carrier Etihad said earlier this month that it aims to fly 25 million passengers a year by 2020, and to double the number of cities it serves to 100.

Under the plans, the airline’s workforce would grow to 27,000 from 6,600.

In July, Etihad ordered 205 aircraft at the Farnborough International Airshow for a total value of $43 billion.

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READERS' COMMENTS

Somthing you forgot to account for
Posted by sid, Sharjah on Wednesday 1 October 2008 at 10:59 UAE time


It is Summer in here and also the month of Ramadan slows all businesses to a grinding halt. Global financial crisis have an effect, but so do Ramadan and Summer.

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