💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Air travel demand up in February, despite U.S. travel restrictions

Published 04/06/2017, 06:45 AM
Updated 04/06/2017, 06:51 AM
© Reuters. Travelers wait in line at a security checkpoint at La Guardia Airport in New York

BERLIN (Reuters) - Global demand for air travel rose 4.8 percent in February, thanks to lower fares and improving economies, with no major impact from an attempted U.S. travel ban, the International Air Transport Association (IATA) said on Thursday.

Tourism bodies have warned that travel to the United States could slow this year due to a perception that it is less welcoming to travelers than before.

"Although we remain concerned over the impact of any travel restrictions or closing of borders, we have not seen the attempted U.S. ban on travel from six countries translate into an identifiable traffic trend," IATA Director General Alexandre de Juniac said in a statement on Thursday.

Middle Eastern carriers, among the most affected by the attempted travel restrictions, saw demand rise 9.5 percent in February, said IATA, which represents nearly 265 airlines accounting for 83 percent of global air traffic.

De Juniac also repeated criticism of the way in which authorities brought in new restrictions on electronic devices larger than a smartphone from passenger cabins on flights from certain countries without first consulting the airline industry.

"The introduction of restrictions on the carry-on of large electronic devices was a missed opportunity and the result was a measure that cannot stand-up to the scrutiny of public confidence in the long term," he said.

Europe's aviation regulator on Wednesday voiced concern over the risk of battery fires in the cargo holds of passenger planes as a result of the ban.

Overall, capacity in February increased 2.7 percent, leading to the load factor - a measure of how full planes are - rising 1.6 percentage points to 79.5 percent. IATA said that was the highest-ever level recorded for a February.

Falling fares have put pressure on airline earnings in recent months and IATA said it estimates fares have dropped by more than 10 percent in real terms over the last year.

© Reuters. Travelers wait in line at a security checkpoint at La Guardia Airport in New York

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.