IATA: Middle East continues to lead international growth, Eurozone and US showing recovery

IATA reported the following highlights for international passenger markets for May-2014:

• Asia Pacific: Regional carriers recorded the largest increase among the three biggest regions. The strong performance suggests that downward pressure on demand from sluggishness in the Chinese economy is likely easing, capacity growth was mildly ahead of demand;
• Europe: Regional carriers international traffic climbed ahead of capacity. Eurozone economic activity has been gaining momentum slowly and recent data suggest that solid increases in industrial production and trade should result in acceleration in GDP in 2Q2014;
• North America: Airlines saw rising demand, implying positive underlying economic growth trends with easing pressure on employment levels. Capacity rose ahead of demand, but US load factors were still the highest among all regions.

• Middle East: Regional carriers continue to report the strongest traffic growth, as airlines continue to benefit from the strength of regional economies, including non-oil production sectors, and solid growth in business-related premium travel. Capacity trailed demand, strengthening load factors.
• Latin America: Traffic grew ahead of demand for regional carriers, and outlook for Latin American carriers remains broadly positive. The continued robust performance of economies like Colombia, Peru and Chile are contributing to the strong demand environment, although the Brazilian economy remains weak;
• Africa: Regional airlines saw the slowest demand growth and regional load factors fell and remain the lowest among the regions. IATA stated the weakness in international air travel for African regional carriers could be in part reflecting adverse economic developments in some parts of the continent, with the slowdown of the major economy of South Africa. However, latest trade data show a slight pick-up in volumes. If that trend continues, there could be a rise in demand for business related international air travel. [more - original PR]