Air Passenger Demand Losing Momentum, Weigh On Terrorism, Economic Uncertainty

KUALA LUMPUR, Aug 5 (Bernama) -- The air passenger traffic for June rose 5.2 per cent compared with the same period a year ago, the International Air Transport Association (IATA) said. This was up slightly from a 4.8 per cent increase recorded in May. "However, the upward trend in seasonally-adjusted traffic has moderated since January," Director General and Chief Executive Officer Tony Tyler said in a statement. He said June capacity rose 5.6 per cent and load factor slipped 0.3 percentage points to 80.7 per cent. "The demand for travel continues to increase, but at a slower pace. The fragile and uncertain economic backdrop, political shocks and a wave of terrorist attacks are all contributing to a softer demand environment," he said. Tyler said the latest figures showed that aviation and aviation related tourism delivered US$2.7 trillion in economic impact and supported some 62.7 million jobs worldwide. "It is a powerful force for good in our world. It is too soon to know whether recent terrorist attacks will have a long-term negative influence on demand, or what will be the impact of Brexit and the events in Turkey. "But it is vital that governments recognise and support aviation’s ability to contribute to global economic well-being and better understanding across cultural and political borders," he added. -- BERNAMA