Global air traffic growth in June slows to 2.4%

[SINGAPORE] Softening world trade growth and lower business confidence caused air traffic growth to slow to 2.4 per cent in June, while total traffic in the Far East contracted 4.2 per cent on the back of weakness in key emerging markets.

For the first half of this year, total traffic growth came to 3.7 per cent year-on-year, underpinned largely by the wave of growth which actually took place in 2H13 and low base effects when compared against 1H13. For the period between December 2013 and June 2014, passenger numbers were flattish and merely inched up 0.7 per cent, the International Air Transport Association (Iata) pointed out in its latest report.

However, with business confidence on the rise, signs are pointing to a more robust performance for air travel in the second half of this year.