Paris (France) (AFP) – Demand for summer air travel is holding up well despite airlines hiking ticket prices, although possible shortages of jet fuel could throw a wrench in the key travel period, an industry trade body said Wednesday. The International Air Transport Association (IATA), which unites most of the world’s leading airlines, stated that demand for air travel held up well in March despite the ongoing war in the Middle East. Passenger volume rose by 2.1 percent compared to March last year, while the number of flights dropped by 1.7 percent.
Airlines were able to maintain demand 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 disruption in air traffic in the Gulf region. Consequently, passenger volumes in the Middle East plunged by 58.6 percent as airports were closed. However, as Abu Dhabi and Dubai have become major hubs in international air travel between Asia and Europe, the impact was much wider, leading to an overall dip in international passenger volumes by 0.6 percent. Outside the Middle East, international passenger volumes were up by eight percent.
Domestic demand also increased by 6.5 percent from March last year, with seat occupancy rising correspondingly. The closure of the Strait of Hormuz, through which a fifth of global oil normally travels, has sent energy prices soaring. Jet fuel prices have skyrocketed, prompting airlines to raise ticket prices quickly. “While this has not impacted March traffic or forward bookings to date, it remains to be seen at what point high prices could start to shift passenger behavior,” IATA’s director Willie Walsh stated.
“So far, the summer is shaping up to be a normally busy time for travel,” he added. The summer travel period is crucial for the commercial airline industry regarding profit generation. However, he noted that shortages of jet fuel could emerge over the next few months in regions heavily dependent on supplies from the Middle East, particularly in Asia and Europe. “Everybody’s watching what’s happening with jet fuel,” said Walsh, urging regulators to be flexible in case capacity restrictions and fuel rationing need to be introduced.
© 2024 AFP
