Global airline passenger demand rose by 5.3% in July, signaling a “broadly positive” outlook for the sector, according to latest Iata figures.
But the industry body highlighted the Ebola outbreak in West Africa, weakness in the eurozone, hostilities in eastern Ukraine and instability in the Middle East as problems which could de-rail the upward trajectory.
Iata director general and chief executive Tony Tyler said: “July was another strong month of growth for air travel. People are connecting by air in ever-greater numbers. That’s true across all regions.
“Despite the various economic challenges, the outlook for passenger travel remains broadly positive. The overall sluggishness at the beginning of the year appears to be behind us, with growth in China and other emerging economies offsetting recent deterioration in the eurozone.”
He added: “Airlines reported growth in July, which is a positive story for the global economy.
“Robust economic conditions support the expansion of travel. In turn connectivity stimulates economic growth and creates jobs. It’s a tried and tested virtuous circle. And the expectation is for continued solid growth over the remainder of 2014.
“Airlines are on track to record a profit of some $18 billion this year. But that is a net profit margin of just 2.4% which does not provide much of a buffer. So it is critical that governments shore-up connectivity with business friendly policies based on reasonable taxation, cost-efficient infrastructure and smart regulation,” said Tyler.