Iata warns of turbulence despite strong July figures

Iata warns of turbulence despite strong July figures

Global airlines saw “robust” growth in demand for both domestic and international travel in July over the same month last year but the sector faces possible autumn turbulence.

Total revenue passenger kilometres rose 8.2%, against the June year-over-year increase of 5.5%, according to latest Iata figures.

July capacity increased by 6.5%, and load factor rose 1.4 percentage points to 83.6%.

The results were given a boost by the timing of Ramadan which fell partly in July this year but took place mostly in July in 2014. The holy month tends to subdue demand for air travel.

However, Iata director general and chief executive, Tony Tyler (pictured) issued a note of caution, saying: “July results were strongly positive but slowing global trade and the wild gyrations of stock exchanges around the globe suggest that we may be in for some turbulence in coming months.

“Following a strong summer the outlook heading into autumn is unsettled to say the least. While passenger demand remains healthy, air cargo growth turned negative in July.

“The downward movement in stock markets around the globe reflects investors’ growing concerns about slowing trade and economic growth in emerging economies, as well as China’s continued shift towards domestic markets.

“Aviation’s connectivity creates economic opportunities and contributes to job creation.

“Governments looking to shore up consumer confidence and encourage spending should be encouraging greater connectivity by removing barriers to growth such as heavy taxes and charges and infrastructure constraints,” said Tyler.

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