Air Passenger Market Analysis - July 2013

A summary of the key points from the International Air Transport Association IATA 'Air Passenger Market Analysis - July 2013.' Published by IATA September 3rd, 2013

• Air travel markets recorded another month of solid growth in July, up 5.0% year-on-year;
• There was a contraction in RPKs in July compared to June, but this is an adjustment to recent growth acceleration;
• Current levels of business confidence and trade growth are more consistent with RPK expansion at year-to-date rates (~5%);
• Middle Eastern carriers recorded strongest growth in international RPKs, despite seasonal impacts of Ramadan;
• Asia Pacific airlines' RPKs contracted month-on-month, which is consistent with softer regional economic performance;
• Domestic air travel was up in most major markets, but China could be showing first signs of weakness;
• Passenger load factors slipped in July as capacity continues to expand, but levels remain high;
• Business confidence improved slightly in July as the Eurozone emerged from an 18-month-long recession;
• But the region's growth prospects for H2 are uncertain, and weakness in emerging Asia continues to be a concern;
• On balance, air travel should receive enough support to expand at current rates during H2 2013.

The full report may be downloaded or viewed on the IATA website.