Growth in international air passengers rose 3.6 percent in November compared to a year ago, showing no improvement on October’s performance (a 3.7 percent increase).
Consistent with weakening global business conditions, these results suggest that growth in international air travel is stalling. International air travel volumes, according to the International Air Transport Association (IATA), indicates a flattening in the growth trend in both economy and premium passenger numbers over the recent past.
This development reflects a gradual slowdown in improvements in business confidence throughout H2 2014, with economic conditions in the Eurozone and China deteriorating.
“Nonetheless, travel within Europe itself performed well overall in November with a 4.9 percent rise compared to a year ago. Much of that growth, however, took place in economy class travel (up 5.2 percent), partly driven by business travellers substituting away from premium seats (up 0.9 percent) as a means of cost cutting, stronger growth in total international travel was inhibited by other markets where expansion remained robust but below trend. Examples include international travel on Europe – Far East, Europe.
Read also:Global airlines record healthy traffic in November
“In that region, the outlook for international air travel remains positive overall, but recent slowdown in major economies like China and the Eurozone could place downward pressure on demand in coming months.
“Moreover, although growth in world trade has been supportive of business-related air travel over recent months, gradual easing in business confidence since mid-2014 suggests the improvements in international trade could be limited,” Tony Tyler, IATA director general said.
According to him, there were signs of stronger growth earlier in Q3, after a period of notable weakness mid-year, but that positive momentum has slowed again. Although the global economy continues to expand, latest data show a widespread slowdown in key economies at the start of Q4.
He added that the US economy appears to be set for steady growth, but at a slower pace in Q4 than was seen in earlier months, according to Markit’s indicators of business activity. Industrial production in the Eurozone and China are pointing towards deterioration in those economies.
