Global Passenger Demand Declines, Says IATA

KUALA LUMPUR, July 2 (Bernama) -- The global passenger demand growth of 5.6 per cent in May, below the 7.1 per cent in April, indicates a downward trend in line with the deteriorating global economic conditions, says the International Air Transport Association (IATA). "All regions except for Middle East saw growth in passenger demand slow in May compared to April. "A 4.1 per cent capacity expansion, however, helped improve load factors from 75.9 per cent in May 2011 to 77 per cent for the current month, but below the historically high levels recorded in April," it said in a statement Monday. IATA's Director General and Chief Executive Officer Tony Tyler said the airline industry was fragile. "Relief in oil prices provides some good news, but unfortunately the softness in oil markets comes on the back of fears of deterioration in the European economy. "Business and consumer confidence are failing and we are seeing the first sign of that in slowing demand and softer load factors," he said. --BERNAMA