Iata voices concern over geopolitical tensions and strikes

International airline demand in November was pegged at the previous month’s level amid clouds hanging over the sector.

Global passenger traffic results from Iata showed a 3.3% year-on-year rise in demand.

This was unchanged from October’s result and below the industry’s long-term trend.

Passenger growth in Europe fell back to an increase of just 1.2% – the weakest level in more than six years.

Industrial action disrupted operations for a number of airlines during the month, contributing to the demand slowdown.

More:‘Iata won’t hit target’, warns Advantage Travel Partnership’s

Iata warns of impact of economic uncertainty

Iata warned that a rise in geopolitical tensions may impact international demand for North American carriers going forward.

Asia Pacific carriers faced disruptions from protests in Hong Kong, slowing demand in India and China and “less supportive” business confidence in several key economies.

Overall capacity increased by 1.8%, and the load factor climbed 1.1 percentage points to a record November level of 81.1%.

Iata director general and chief executive Alexandre de Juniac said: “November’s moderate result reflects the continuing influence of slower economic activity, geopolitical tensions and other disruptions, including strikes in Europe.

“On the plus side, positive developments in the US-China trade talks, in tandem with signs of improving business confidence, could support an uptick in travel demand.

In the meantime, continued modest capacity growth is helping to maximise asset efficiency.”

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