Growth in air demand continued in June

Worldwide demand in the aviation
industry continued to grow in June, according to the latest monthly traffic
results released by the International Air Transport Association.

In a direct comparison with June
2009, passenger demand was up by 11.9 per cent and cargo traffic was up by 26.5
per cent.

The association, which represents
230 airlines comprising 93 per cent of scheduled international traffic, said
that capacity had increased a touch above demand improvements. This kept load
factors in line with historical highs of 79.8 per cent for passenger traffic
and 53.8 per cent for freight.

Market recovery

Market recovery is now in double
digits for all geographical sections with the exception of Europe, which had
passenger growth of 7.8 per cent. The Middle East grew by 18 per cent compared
to June 2009, based on strong regional economic factors and long-haul traffic
hub attraction to the region. The Asia-Pacific recorded improvement of 15.5 per
cent, driven by what the association termed the ‘growth engine’ of China, Latin
American carriers’ recorded 14.7 per cent growth and Africa posted 21.3 per
cent in June, which was impacted positively by the FIFA World Cup.

The North American region grew by
10.8 per cent, building on May 2010’s growth of 10.9 per cent. The
International Air Transport Association noted that this included an
industry-leading load factor of 86.6 per cent.

Freight demand

The international freight demand
growth of 26.5 per cent in June 2010 was down from the 34 per cent recorded in
May 2010. However, the association explained that May had shown an
exceptionally high level of demand because of spill over traffic from the April
ash crisis. Volumes were 6 per cent over the pre-recession peak of early 2008.

Freight demand continued to mirror
economic recovery and trade patterns. The Middle East grew by 39.6 per cent,
Asia-Pacfic by 29.8 per cent and Europe by 15.3 per cent. Analysts said that
the low value of the Euro would help exports in the region and drive up freight
volumes. North American demand in the cargo sector grew by 24.2 per cent.

“We remain cautiously optimistic. A
clear indication of the growing confidence is the over 400 aircraft orders
announced at the Farnborough Air Show. This is good news that will bring
environmental benefits through improved fuel efficiency. But it will also make
the challenge of matching capacity to demand much more difficult,” said
Giovanni Bisignani, director general of the association.

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