Demand for air transport continued to slow in August this year, with significant regional variations. Freight volumes shrank as business and consumer confidence continued to slip. However, compared to the previous year, demand for air travel expanded by 5.1 per cent in August 2012, according to International Air Travel Association (IATA).
This partly reflects a positive distortion owing to the timing of Ramadan. Adjustment for such seasonal fluctuations reveals that passenger demand has been basically flat since June this year, with only a 1.2 per cent expansion since January 2012. Carriers continued to moderate capacity expansion, limiting it to 4.1 per cent growth, taking load factors to 82.1 per cent.
Indian carriers, affected by the slowing economy and high-cost operating environment, saw domestic demand fall by 2.0 per cent last month, compared to August 2011. Capacity expanded by 0.7 per cent and load factors slipped to 66.6 per cent.
Air freight volumes last month fell 0.8 per cent compared with the previous year. The minor recovery seen at the start of the year has faded quickly and the stability seen in freight markets during 2012 could be under threat owing to continued economic weakness. Middle East, African and North American carriers bucked the trend and remained in positive growth territory. All other regions saw freight volumes decline, the most significant being in Asia-Pacific carriers at 5.5 per cent.