Nigerian 2011 Air passenger demand grew by 6% – IATA

Written by Chris Agabi, Lagos Thursday, 09 February 2012 05:00

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The International Air Transport Association (IATA) has reported that the year 2011 passenger demand rose 5.9 per cent compared to 2010, in line with long-term growth trends.

In contrast, cargo markets contracted by 0.7 percent for the year; but recorded positive demand growth in December of 0.2 percent, IATA said.

The breakdown of the industry performance showed a “growth in demand lagged capacity increases at 6.3 percent (passenger) and 4.1 percent (cargo) putting downward pressure on load factors. The average passenger load factor for 2011 was 78.1 percent, down from 78.3 percent in 2010, while the freight load factor was just 45.9 percent, down from 48.1percent in 2010.”

Tony Tyler, IATA’s Director General and CEO said “Given the weak conditions in Western economies, the passenger market held up well in 2011. But overall 2011 was a year of contrasts. Healthy passenger growth, primarily in the first half of the year, was offset by a declining cargo market. Optimism in China contrasted with gloom in Europe. Ironically, the weak euro supported business travel demand. But Europe’s primarily tax and restrict approach to aviation policy left the continent’s carriers with the weakest profitability among the industry’s major regions. Cautious improving business confidence is good news. But 2012 is still going to be a tough year.”

Passenger demand for December rose 5.4 percent compared to the same month in 2010. But the trend since mid-year has clearly slowed, as travel markets react with a lag to the declines in confidence that weakened cargo in the second half of 2011. Comparisons with December 2010 are also distorted as severe winter weather in Europe and North America as well as strikes in Europe suppressed demand. December 2011 passenger demand was up just 0.7 percent over November while the load factor declined 0.2 percentage points. Freight capacity climbed 4.4 percent in December compared to December 2010. The freight load factor was just 46.1 percent for the month.

International air travel rose 6.9 percent last year IATA said but noted that, the majority of this growth occurred in the first half of the year.

International capacity climbed 8.2 percent, pushing the passenger load factor down to 77.4 percent. For December, international traffic climbed 6.4 percent year over year, in part owing to depressed traffic levels in 2010 in North American and Europe, and rose 1.4 percent compared to November.

European carriers posted the second highest growth rates, behind Latin American carriers. Demand rose 9.5 percent last year while capacity climbed 10.2 percent, resulting in a load factor of 78.9 percent.

African airlines saw travel demand fall 0.7 percent for December, but it rose 2.3 percent for the full year it said.

“This relatively weak performance was in part owing to the civil unrest in a number of North African countries. However, good economic performance in the region was also generating significant demand for air travel. African airlines were unable to fully benefit and their low growth represents a loss of market share. Capacity climbed just 0.2 percent for December and 4.4 percent for the 12 months. Load factors were the weakest in the industry at 68.9 percent for December and 67.2 percent for the full year” it said.

“Improving business confidence and encouraging news from the US economy are heartening developments. But it is far too early to start predicting a soft landing for 2012. The euro zone crisis is far from over. Failure to achieve a durable solution will have dire consequences for economies around the world. And it would most certainly tip the airline industry into the red,” said Tyler.