Passenger volumes rose in March despite war in the Middle East – Copyright AFP Marco BERTORELLO
Demand for summer air travel is holding up despite airlines raising ticket prices, although potential jet fuel shortages could throw a wrench into the prime travel period, an industry trade body said on Wednesday.
The International Air Transport Association (IATA), which brings together most of the world’s major airlines, said demand for air travel held up well in March despite the war in the Middle East.
Passenger volume increased by 2.1 percent compared to March last year, while the number of flights decreased by 1.7 percent.
Airlines were able to do this by increasing seat occupancy by 3.1 points to 83.6 percent.
The attacks on Iran launched by the United States and Israel on February 28 caused severe disruptions in air traffic in the Gulf region. Passenger volumes in the Middle East fell by 58.6 percent after airports were closed.
But while Abu Dhabi and Dubai have become major hubs in international air travel between Asia and Europe, the impact was much wider.
International passenger volumes fell by 0.6 percent overall. Outside the Middle East they increased by eight percent.
Domestic demand increased by 6.5 percent from March last year, as occupancy increased.
The closure of the Strait of Hormuz, through which a fifth of global oil normally travels, has driven up energy prices.
Jet fuel prices have skyrocketed and airlines have rushed to raise ticket prices.
“While this has not affected March traffic or future bookings, it remains to be seen at what point higher fares may begin to change passenger behaviour,” said IATA director Willie Walsh.
“So far, summer is shaping up to be a fairly busy time for travel,” he added.
The summer travel period is key for the commercial airline industry in terms of profitability.
But he noted that jet fuel shortages could emerge over the coming months in regions that depend heavily on supplies from the Middle East, particularly Asia and Europe.
“Everybody is looking at what’s going on with jet fuel,” Walsh said, urging regulators to be flexible about whether capacity restrictions and fuel rationing need to be introduced.
