European airport traffic demand seen slowing after rocky H1: ACI Europe

[BERLIN] Traffic demand at European Union airports is expected to slow over the course of the second half of the year due to security fears and Britain's decision to leave the European Union, airport association ACI Europe said on Tuesday.

Passenger traffic at EU airports rose 4.8 per cent in the second quarter of 2016, slowing sharply from the 8.2 per cent seen in the first quarter.

"EU airports are also likely to see a continued softening of passenger traffic on the back of lower consumer confidence fuelled by terrorism and the decision of the UK to leave the EU, as well as major full service airlines reining in capacity," ACI Europe Director General Olivier Jankovec said in a statement.

Major European carriers such as Lufthansa and British Airways owner IAG have said they will trim growth plans this year.

The bright spots in the first half were secondary airports where low-cost traffic is growing, such as Berlin Schoenefeld, Cologne-Bonn and Barcelona, said ACI Europe, whose members include Fraport, Groupe ADP and Aena .

The situation was markedly worse for Turkey's airports, which saw a 17.5 per cent slump in passengers in the first half of the year.

"Since these traffic figures do not yet reflect the full impact of the Istanbul-Ataturk airport terrorist attack and the failed coup in Turkey, we expect a further worsening of airport traffic performance over the summer and for the remainder of the year," Mr Jankovec added.

Turkish travel stocks rose on Tuesday, ahead of President Tayyip Erdogan's meeting with Russian counterpart Vladimir Putin in the city of St Petersburg that is aimed at easing tensions between the two countries.

REUTERS