Traffic across the globe grew at a slower pace year-over-year in the first half of 2007, with the Middle East the only region managing to register double-digit growth
Overall traffic grew by 6.3% on a 5.4% increase in capacity. This compares to the 6.6% traffic growth recorded in the first half of 2006. Load factors in the first six months of this year rose by 0.6% to 75.7%, according to figures released by IATA.
The Middle East posted the highest traffic increase at 17.8%. Africa came second, with RPKs up 9.9% year-over-year on a 7.7% increase in capacity. IATA attributes this growth mainly to improving links with Asia and the Middle East.
Latin America lagged behind with its 0.7% traffic increase, which was outpaced by a 1.4% rise in capacity. This resulted from the collapse of Varig, which saw the Brazilian carrier's traffic plummet 83.3% on a 78% reduction in capacity, leading to a 17% drop in load factor to 53.5%.
Latin America's figures are largely expected to improve following Gol's takeover of Varig. Gol posted a 46.1% increase in traffic, but this was outpaced by a 58.4% growth in capacity, causing its load factor to drop 5.7 points to 67.7%.
In the Asia-Pacific region, IATA figures show a 6% increase in traffic on a 5% rise in capacity. The Association of Asia Pacific Airlines (AAPA) says passenger traffic at its member airlines grew by 3.7% on a less than 1% rise in capacity, causing load factors to climb 2.1 points to 76.6%.
"The outlook for the coming months remains fairly stable," says AAPA director general Andrew Herdman.
In Europe, traffic for the six months ended 30 June was up 4.9% on a 4.1% growth in capacity. According to the Association of European Airlines, the most significant traffic growth among its members was on South Atlantic routes, where RPKs increased by 14.1% on a 13.4% growth in capacity. Cross-border European traffic rose 6.6%, while international short- and medium-haul traffic was up 6.9%.
European low-cost and regional carriers recorded stronger traffic growth than the mainline operators. For instance, budget carrier Norwegian's RPKs rose by 19.6% on an 18.9% growth in capacity, while Scandinavian Airlines saw its traffic drop 10.3% on a 7.7% reduction in capacity.
First half traffic for North American carriers increased by 5.2%, barely outstripping the 5% growth in capacity. Mesaba Airlines saw significant traffic and capacity reductions as a result of eliminating 35 Avro RJ85s from its fleet.
IATA chief economist Brian Pearce says that, despite a relatively positive start to the year, global traffic has on average slowed down. "The year started strongly and there was a bounce in the US economy, but things have slowed down since," says Pearce. "We are past the peak in traffic growth. It's still quite robust, but it's slower."
Source: Airline Business
