Global passenger demand growth slows as coronavirus hits airlines

(Sharecast News) - The International Air Transport Association said on Wednesday that global passenger traffic data for January 2020 showed that demand had climbed just 2.4% year-on-year - the slowest pace recorded in almost a decade.
That figure was also down from the 4.6% year-on-year growth recorded a month earlier as well as being the lowest monthly increase recorded since April 2010, at the time of the volcanic ash cloud crisis in Europe that led to massive airspace closures and flight cancellations.

January capacity increased by 1.7%, while load factor climbed by 0.6 percentage points to 80.3%, while international passenger demand rose 2.5%.

Demand for US domestic travel climbed meanwhile 2.3%

IATA chief executive Alexandre de Juniac said: "January was just the tip of the iceberg in terms of the traffic impacts we are seeing owing to the COVID-19 outbreak, given that major travel restrictions in China did not begin until 23 January. Nevertheless, it was still enough to cause our slowest traffic growth in nearly a decade."

De Juniac added that the Wuhan coronavirus outbreak was "a global crisis" that was testing the resilience of the airline industry and the global economy.

"Airlines are experiencing double-digit declines in demand, and on many routes traffic has collapsed. Aircraft are being parked and employees are being asked to take unpaid leave," he said.

"In this emergency, governments need to consider the maintenance of air transport links in their response. Suspension of the 80/20 slot use rule, and relief on airport fees at airports where demand has disappeared are two important steps that can help ensure that airlines are positioned to provide support during the crisis and eventually in the recovery."