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Demand Growth Could Slow Later This Year
Demand and yield on international routes is surging, although a slowdown in growth later this year could lead to excess capacity concerns, the International Air Transport Association says.
The ash-related cancellations dented the strong traffic growth that was underway in the first quarter, IATA says. However, May data that has emerged so far indicates that April “looks likely to be only a temporary interruption to the upturn.”
These are good signs for IATA’s airline industry financial forecast that is scheduled to be released June 7 at the group’s Annual General Meeting in Berlin. The last quarterly update – released in March – predicted a $2.8 billion loss for 2010, although this was better than the $5.6 billion deficit it forecast in December.
Demand growth of around 9% year-on-year outstripped capacity gains in the first four months of this year, IATA says. READ MORE: Aviationweek.com
