For now, the market growth is in limbo, in keeping with the broader market trends.
Year-on-year, demand for air travel in June expanded by 6.2%. Capacity grew by a much more cautious 4.5% leaving load factors at 81%. While this appears to be a healthy growth rate, the growth trend since early 2012 has seen a slowdown. This is illustrated by isolating the February through June trend which shows 2% annualized growth. That is a major slowdown from the 8% annualized growth rate experienced from mid-2011 through to January 2012.
— North American airlines saw 1.6% growth in demand while capacity was cut by 0.3% compared to the previous June. This pushed the load factor to 86.9% which was the highest among the regions. Compared to May there was basically no growth with the region’s airlines reporting a 0.1% decline in demand.
— European airlines experienced strong growth in June (7.3%), well ahead of the May result (4.3%). Given the continuing economic uncertainty centered on Europe, the strong June performance is more likely a result of volatility in weak market conditions.
Full numbers from IATA, embedded below:
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