Falling air fares boost travel
The growth in air passengers slowed to 7.7% in May, which compared to a rise of almost 11% in April.
However, the International Air Transport Association (IATA) said the increase in May was still well ahead of the five and 10-year average growth rates.
Capacity was up 6.1% and load factors rose 1.2 percentage points to just a shade over 80%, a record high for May.
All regions, excluding the Middle East and North America, posted record-high load factors.
Traffic between the Middle East and North America was hit by US and UK imposed bans on passengers carrying electronics, including laptops, in their hand-luggage on flights from a handful of destinations.
The US ban has now been lifted on flights from Abu Dhabi, Dubai, Turkey and Qatar.
After adjusting for inflation, airfares at the start of the second quarter were about 6% lower than a year ago. IATA estimates that this contributed to around two-fifths of the annual growth in passenger traffic seen in May.
However, the degree of fare stimulus is half that seen in the second half of 2016. "This stimulus is likely to fade further in light of rising airline cost pressures, while business confidence has softened." said IATA. "However, passenger demand is likely to remain well supported during the upcoming peak travel months of July and August."
Director general and CEO Alexandre de Juniac added: "Passenger demand is solid. And we don’t foresee any weakening over the busy summer months in the Northern Hemisphere.
"But the rising price of fuel and other input costs is likely to see airlines’ ability to stimulate markets with lower fares taper over the coming months. In parallel, rising trade protectionism and barriers to travel are worrying trends that, if unchecked, could impact demand.
"As a business airlines depend on borders that are open to trade and people."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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