IATA: Global Air Passenger Demand Falls 1.7% in June


   
   SECAUCUS, NJ (DTN) -- Global air passenger demand declined 1.7% year on year 
in June, capping off a soft second quarter weighed down by Middle East tensions 
and weak domestic travel, the International Air Transport Association (IATA) 
reported Thursday (7/30).

   Total passenger demand, measured in revenue passenger kilometers (RPK), 
improved slightly from May's 2.2% drop, while capacity fell 1.3%, leaving the 
global load factor at 84.2%, IATA said.

   North American carriers saw international demand fall 1.0% from a year 
earlier as capacity dropped 0.7%, bringing the regional load factor to 86.9%.

   Domestic markets continued to face headwinds, with total domestic RPK 
falling 3.0% in June. U.S. domestic traffic dropped 1.2%, while China led major 
domestic contractions with a 5.2% decline, both pinched by higher fuel costs.

   Middle Eastern carriers remained the heaviest drag on overall traffic due to 
the ongoing conflict in the region, though their demand decline narrowed 
significantly to 13.9% in June compared to April's 46.6% plunge.

   IATA Director General Willie Walsh noted that high fuel costs and supply 
uncertainties around the Strait of Hormuz continue to burden travelers with 
higher fares despite recent oil price declines.

   International passenger traffic itself dropped 0.9% year on year in June, 
though excluding the Middle East, global travel actually grew 1.1%.




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