IATA reports domestic air travel trend

Published on : Saturday, August 3, 2013

generic-planeIATA recently announced a report envisaging the growth of air travel trend in the world travel and tourism sector. Apart from the surge in international air travel, the domestic airlines of the various parts of the world also promised healthy growth.

 

Total domestic air travel performed strongly in June, with growth of 6.1% compared to June 2012, and growth in all major markets. Domestic capacity expanded by 5.2% leading to a load factor of 82.0%.

 

 

The United States saw domestic growth of 2.4% in June. This weak growth reflects a combination of capacity management, a mature market, and the slowdown in the US economy in Q2. North American carriers posted the highest domestic load factor at 87.1%.

 

 

The Chinese domestic market grew 14.6% in June and the load factor stood at 81.5%. This robust performance came despite a reported slowdown in the Chinese economy in recent months. Declining manufacturing employment may put pressure on demand in the months to come.

 

 

 

Brazilian domestic travel was up 3.2% compared to June 2012. This is positive news in a market that is struggling with a 0.6% contraction over the first half of the year and the likelihood of continued economic weakness. Load factors have been a bright spot however, reaching 77.4% in June as airlines tightly control capacity.

 

 

The Indian domestic market grew 7.7% in June year-on-year, well ahead of a capacity expansion of 2.6%. Load factors reached 81.5%. Reductions in domestic fares may be leading to increased demand, but it is difficult to discern the true strength of the Indian market due to the volatility of month-to-month traffic.

 

 

Russia posted the second-strongest domestic growth rate in June, up 9.8% on a year ago. The outlook for the rest of the year looks positive as the Russian economy looks poised to pick up.

 

 

Japan’s domestic market showed a solid rise of 6.9%, reflecting strong momentum in the country’s economy. A milestone was passed, as Japan’s air travel market recovered to pre-tsunami levels. Load factors of 59.5% however, indicate the continuing challenges in the market.

 

Source: IATA.

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