Global air passenger traffic for February rose 5.3% compared to February 2018, the slowest rate of growth in more than a year but still in line with long-term demand trends, according to figures released by the International Air Transport Association (IATA).

Monthly capacity increased by 5.4%, and load factor slipped 0.1 percentage point to 80.6%, which is still high by historic standards.

“After January’s strong performance, we settled down a bit in February, in line with concerns about the broader economic outlook. Continuing trade tensions between the US and China, and unresolved uncertainty over Brexit are also weighing on the outlook for travel,” said Alexandre de Juniac, IATA’s director general and CEO.

February international passenger demand rose 4.6% compared to February 2018, which was a slowdown from 5.9% growth in January. Capacity climbed 5.1%, and load factor dropped 0.4 percentage point to 79.5%. Airlines in all regions but the Middle East showed traffic growth versus the year-ago period.

European carriers showed the strongest performance for a fifth consecutive month in February. International passenger demand increased by 7.6%, compared to a year ago, unchanged from January. Europe’s continuing strong performance provides a paradox given Brexit concerns and signs of a softer economic outlook, observed IATA.

Asia-Pacific airlines’ February traffic rose 4.2% compared to the year-ago period, a substantial slowdown from the 7.2% increase recorded in January. The timing of the Lunar New Year holiday in the first week of February this year may have shifted some traffic to January.

Middle East carriers recorded a 0.8% international traffic decline in February compared to a year ago, the only region to report a drop year-over-year. Broadly speaking, international passenger volumes of the region’s airlines have been moving sideways for the past 12 to 15 months.

North American airlines’ traffic climbed 4.2% in February, a decline from 5.4% growth in January. Signs of softening economic activity at the end of 2018, in conjunction with the effects of ongoing tensions between the U.S. and several of its trading partners, may be mitigated by the region’s low unemployment and generally sound economic backdrop.

Latin American airlines saw traffic rise 4.3% compared to February 2018, a slippage from 5.4% annual growth in January. Renewed economic and political uncertainties in a number of key countries may weigh upon air transport demand in coming months.

African airlines experienced a 2.5% rise in traffic for the month compared to the year-ago period, down from 5.1% growth in January. Concerns over conditions in the largest economies are contributing to the slowdown.

On the other hand, domestic travel demand rose 6.4% in February compared to February 2018, down from 7.4% annual growth in January. All markets except Australia reported increases in traffic, with India recording its 54th consecutive month of double-digit percentage growth.

“While overall economic confidence appears to be softening, aviation continues to deliver solid results, helping to sustain global commerce and the movement of people,” said de Juniac.

Photo: StockSnap

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