Demand for Air Travel Remains Strong in Major Markets

The demand for air travel continues strong according to Air4Casts as the trend data for the March actual figures does not suggest any slowing in the pace of the passenger advance. It is up slightly on February but not nearly back to the breathless heights of late Spring last year.

However, latest reports from the airports show April ahead by 4.3 percent. While the sample is both small and self-selecting, it shows only minor changes from the previous month’s pattern. The June forecast for passengers globally is for year on year growth of 4.2 percent. The forecast for the third quarter is slightly higher at 4.4 percent and that is a function of the rising trend.

It may be that this trend is not yet full reflected in the projections and that growth rates will again move up a notch in the next three months. A contributory factor could arise from the US market where 2006 supply side changes depressed growth rates in the last half of the year.

The June forecast, at 5.6 percent for international passengers worldwide, is in line with previous projections and underlines the strong forces which continue to operate in the main regions. Growth in domestic air travel demand in June will be 3.2 percent but, importantly, there are no signs of the upward trend weakening, the forecast for the third quarter is 4.4 percent year on year.