Growth in international air passenger traffic disappointed for a second consecutive month with a 2.6% increase in July year-on-year – premium seat numbers rose only slightly more, 3%.

 

This was also the case for the first half of 2014. Premium travel expanded on average at a slightly faster rate than economy travel, at 3.8% compared to 3.6%.

 

“The share of premium travel still seems to be trending upwards from the low point reached at the bottom of the economic cycle in late 2012,” says IATA.

 

Although international air travel was 3.6% higher in July year-to-date, passenger numbers have contracted slightly between December and July according to the International Air Traffic Association (IATA).

 

 

WEAKENED TRAFFIC IN LAST TWO MONTHS

Part of the ‘year-to-date’ growth took place last year, when business activity and trade grew strongly. And while there was some growth between December and May, there has been a notable weakening during the last two months, flattening the growth trend in international passenger numbers in 2014.

 

“This weakness comes despite recent improvement in trade and business confidence, which both weakened in Q1,” says IATA, which says that the slowdown is largely limited to the Far East and those markets connected to South America.

 

“Economic and politic turmoil in Thailand has damaged tourism demand over recent months and Malaysia air travel has been impacted by tragedies related to the flag carrier,” adds IATA.

 

Routes between North and South America have been hit by capacity cuts to Venezuela as well as weakness in key economies like Brazil and Argentina, but by contrast, longer-haul markets have been performing strongly.