MidEast carriers posts strongest annual traffic growth at 13% in 2014

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MidEast carriers posted the strongest growth in 2014 with 13% rise in traffic. Photo courtesy-Amrit Kannan/Emirates

 

The International Air Transport Association (IATA) announced global passenger traffic results for the full year of 2014 showing demand (revenue passenger kilometers or RPKs) rose 5.9% compared to the full year of 2013. This 2014 performance was above the 10-year average growth rate of 5.6% and the 5.2% annual growth experienced in 2013 compared to 2012.

Capacity rose 5.6% last year, with the result that load factor climbed 0.2 percentage points to 79.7%. All regions saw demand grow in 2014. More than half of the growth in passenger travel occurred on airlines in emerging markets including Asia-Pacific and the Middle East. In recent months domestic market growth played a large role in driving growth. This is owed mainly to a pick-up in Chinese domestic travel which expanded by some 11% in 2014 over the previous year.

Year on Year Comparison
Dec 2014 vs. Dec 20132014 vs. 2013
RPKASKPLFRPKASK
International6.3%6.5%78.3%6.1%6.4%
Domestic5.8%5.8%79.4%5.4%4.3%
Total Market6.1%6.2%78.7%5.9%5.6%

“Demand for the passenger business did well in 2014. With a 5.9% expansion of demand, the industry out-performed the 10-year average growth rate. Carriers in the Middle East posted double-digit growth while results in Africa were barely above previous-year levels. Overall a record 3.3 billion passengers boarded aircraft last year—some 170 million more than in 2013. While it is clear that people will continue to travel in growing numbers, there have been signs in recent months that softening business confidence is translating into a leveling off of international travel demand,” said Tony Tyler, IATA’s Director General and CEO.

International passenger traffic rose 6.1% in 2014 compared to 2013. Capacity rose 6.4% and load factor slipped 0.1 percentage points to 79.2%.

Middle East carriers had the strongest annual traffic growth at 13.0%. The region’s economies continue to show robust growth in non-oil sectors, and are therefore well-placed to withstand the plunge in oil revenues. Capacity rose 11.9% and load factor climbed 0.8 percentage points to 78.1%.

The Bottom Line:

“In the aftermath of the Greek elections and the intensifying debate on how to deliver a dynamic economic program for Europe, we must not forget the power of air connectivity to create growth. Governments can kick-start economic development by reducing the passenger taxes that depress demand for air transport, costing jobs and prosperity. There are some positive signs. The Scottish government is promising to cut its air passenger duty by 50%. And Austria’s air transport levy is being evaluated as part of comprehensive tax reforms. Scrapping the Austrian levy alone could create some 3,300 jobs. That should help convince politicians in these countries to move from considering reductions to delivering results. High taxes, onerous regulation and infrastructure limitations make Europe a tough place to run an airline. A continent-wide commitment to address these issues so that aviation can play its critical role as an economic catalyst would be a powerful signal that Europe’s politicians really do mean business,” said Tyler.

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