The global aviation industry continues to face “headwinds” despite recording a 5.9% rise in passenger carryings in July.
International passenger markets, which grew by 7.3% compared with July 2010, remain stronger on average than domestic markets which showed weaker growth of 3.5% year on year, according to IATA.
International passenger traffic has expanded by 12% compared with pre-recession levels of early 2008.
Had the industry continued to grow at the pre-recession pace of 8%, international markets would have been about 14% higher than today’s levels and a quarter higher than pre-recession level, the global airline body estimated.
“This confirms that the global financial crisis has cost airlines about two full years of growth,” IATA said. “While the European debt crisis continues to deliver economic uncertainty, the continent’s airlines are benefiting from a strong expansion of inward demand that is taking advantage of the weakened currency.”
Director general and chief executive Tony Tyler said: “Passenger travel bucked the gloomy economic outlook with a 5.9% increase in July. This increase was likely based on the much more optimistic economic outlook that marked the beginning of the year.”
But he added: “With business and consumer confidence now tanking, sluggishness in international trade, and high fuel prices, the expectation is for a weaker end to the year.”
Tyler said: “July is the peak in the annual cycle for passenger traffic. This year was no exception. But even if the industry’s performance could be classified as stronger than expected, we do face headwinds as we look towards the end of the year.
“The recent downsizing of Air Berlin is a clear reminder of the high cost of the German departure tax on the economy, jobs and communities.
“Governments should not compromise aviation’s role as an economic catalyst for the short-term revenue gain of gratuitous taxation – particularly when economies remain weak,” said Tyler.
Brazil and India recorded the highest growth rates in domestic carryings of 17.8% and 20.6% respectively over the same month last year.