But Growth Was Slightly Down From May, 2014

Data released by IATA shows air travel markets rose by a solid 4.7% in June year-on-year, but slightly down from May's growth of 6.2%. Growth during the first six months of the year was 5.9%, up from 5.2% overall in 2013.

International revenue passenger kilometers (RPK) increased by a solid 5.5% in June year-on-year. This helped growth year-to-date reach 6.4%. Several regions have benefitted from the global economic upturn, but there are some differences in performance developing. European airlines have recorded growth of 5.8% in international RPMs so far this year, compared to 3.8% from 2013, consistent with steady and continued economic recovery. Carriers in Latin America experienced strong growth of 5.9% in June year-to-date, but that is a notable slowdown on 2013 overall, when growth was 8.1%. Part of the relative weakness is due to a notable cut-back in capacity in 2014, as well as sluggishness in major local economies and regional trade growth.

The highest growth was in the Middle East, Europe and the Asia Pacific region, with North American airlines also showing solid growth. Russian and Latin American carriers also performed well, but African airlines showed a decline for the period.

IATA says earlier signs of wavering in the demand environment now appear to be dissipating. Business activity is picking up again and improving conditions in emerging markets like China point to easing downward pressure on demand. Combined with continued improvement in advanced economies, it is likely that current performance growth in RPKs will be at least sustained in months ahead.

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