Growth in Global Air Passenger Demand Slows Due to Middle East Conflict

Willie Walsh, chief executive officer of International Consolidated Airlines Group SA (IAG), speaks during an interview at the International Air Transport Association (IATA) annual general meeting in Beijing, China, on Tuesday, June 12, 2012. British Airways’ parent is holding off on plans to buy more airlines as the European debt crisis damps travel demand and the appeal of carriers in the region. Photographer: Nelson Ching/Bloomberg via Getty Images

Global air passenger demand continued to grow in June – latest monthly figures from the International Air Transport Association (IATA) show – but the ongoing Middle East conflict slowed demand growth to just 2.6%.

European airlines were among the global performance leaders in June, with a 2.8% year-on-year demand increase and a load factor of 87.4%.

“In June, demand for air travel grew by 2.6%. That’s a slower pace than we have seen in previous months and reflects disruptions around military conflict in the Middle East. With demand growth lagging the 3.4% capacity expansion, load factors dipped 0.6 percentage points from their all-time record-high levels. At 84.5% globally, however, load factors are still very strong. And with a modest 1.8% capacity growth visible in August schedules, load factors over the Northern summer are unlikely to stray far from their recent historic highs,” said Willie Walsh, IATA’s Director General.