Lower Fares Boost Global Airline Traffic But Passengers Avoid Terrorised Europe

The aviation equation is simple – lower fares equals more passengers (although long-haul to troubled Europe is the exception), and that was the case for airlines during July, according to the latest data from the International Air Transport Association.

“Near record high load factors demonstrate that people want to travel, but there are some important sub-plots to the narrative of strong demand,” said Alexandre de Juniac, IATA’s Director General and CEO.

“Long-haul travel to Europe, for example, suffered in the aftermath of a spate of terrorist attacks. And the mature domestic markets are seeing demand growth stall while Brazil and Russia contract.”

The slump in European demand was especially evident in Asia-Pacific.

July traffic on Asia-Europe routes fell by 0.9% in June, contrasting with a sharp 8.1% rise in international traffic within Asia, a four-month high.

Looking ahead, IATA says passenger demand is growing in line with the 10-year average but “the industry faces some potential headwinds, including lingering impacts from the series of terrorist attacks and the fragile economic backdrop.”

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