Demand for Airline Travel Lowest Since 2003

Citing decreased consumer confidence and high oil prices, the International Air Transport Association (IATA) reported that worldwide demand for air travel in June grew at its slowest pace since 2003.

According to the IATA’s international traffic data for June, the 3.8 percent growth was the slowest since the 2003 Severe Acute Respiratory Syndrome (SARS) crisis.

Giovanni Bisignani, IATA’s director general and CEO, said he expected the situation to get worse, saying losses this year could reach $6.1 billion, wiping out the $5.6 billion that airlines made in 2007.

Demand growth for North American airlines dropped to 4.4 percent, down from the 8.2 percent growth recorded in May. U.S. domestic traffic contracted nearly 4 percent. Bisignani said urgent action is needed, suggesting that airports and air navigation service providers come to the table with efficiencies that deliver cost savings.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

6 Takeaways from the 2018 International Car Rental Show

Technological solutions are finally moving from reality to theory, peer-to-peer platforms are being redefined, China has the biggest room for growth, while Sixt’s U.S. aspirations have only just begun.

The Irony of Customer Service in the Digital Age

Sure, any company would jump at the chance to use technology to reduce labor costs. But it also comes with some big, red, flashing warning lights.

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

Job Finder: Access Top Talent. Fill Key Positions.

>