OAG Travel News

International traffic in June, although in previous months a strong driver of overall growth, has slowed to 3.2 percent compared to June 2007. The two largest international markets Europe and Asia-Pacific regions reported 2.4 and 0 percent increases respectively, whereas Africa and Middle East both increased by 13 percent, followed by Latin America & Caribbean region at 7 percent, North America at 5.4 increases.  The bright spots in international traffic remain Egypt and South Africa, as well as the United Arab Emirates, Bahrain and Lebanon. Asia Pacific international traffic contracted mainly due to China, Taiwan and Japan. Bangkok (+5.1%), Singapore (+2.9%), Kuala Lumpur (+6.5%) and Hong Kong (+5.5%) still show moderate growth, but are significantly down from previous levels.

Domestic passenger traffic slowed to a 1 percent increase, and declined in  Africa and Europe . A significant decrease in domestic traffic in South Africa after a carrier failure is the major factor in Africa , whereas sluggish domestic markets in Spain and the UK have dragged down numbers in Europe . Rising air fares may make cars and rail a more attractive option, and the new high speed rail link between Madrid and Barcelona is taking traffic away from these two airports.

Looking at results for the first half of the year, international traffic grew by 6 percent, whereas domestic traffic shows only a marginal increase of 2 percent. The Asia Pacific region which has had one of the highest growth rates in recent years, shows tepid growth only 4 percent so far this year. Domestic figures for the first half of the year have stagnated in North America and Europe .

Mid-year results for worldwide freight show a 2 percent progression, and international freight remain positive at 5 percent. In June, however, worldwide freight traffic growth slowed significantly (-3%) compared with June 2007. The recent downward trend in air freight is very much linked to the price of oil and fuel. Domestically, air freight cannot compete with other transport modes such as road and rail. In Africa the maritime industry offers an attractive alternative to a large portion of the market, whereas in North America a slowing economy is the main factor behind stagnation.

ACI Director of Economics, Andreas Schimm comments on the results, “The second half of the year is set to be a challenge for airports across the globe. No one is immune to this slowing trend, which we hope may still be of temporary nature.  At the moment it all comes down to the impact of the price of oil on economies, cost of living and transport direct costs.  It is that simple.”

Source: ACI (Airports Council International)