The International Air Transport Association (IATA) has accused “ill-conceived” government policies of holding the aviation industry back as the first quarter ended on an uncertain note.
IATA director general and chief executive Tony Tyler conceded that fears of a Eurozone crisis had subsided but highlighted a number of “political risks” that had sprung up in their place.
The rapidly rising cost of fuel was “biting hard,” he said, with a hike to the UK’s Air Passenger Duty proving an additional burden. The European emissions trading scheme’s inclusion of international aviation was also cause for concern, creating the possibility of a costly “trade war”.
“Around the world we see ill-conceived policy initiatives that over-regulate, excessively tax or otherwise restrain the aviation industry,” Tyler said. “This prevents it from being the catalyst for economic growth that it should be.”
Meanwhile, Asia Pacific was the only region that did not see demand expand ahead of capacity in February, according to the latest IATA figures.
Carriers in the region saw a 5.9% increase in demand in February, as capacity grew 6.2%. Load factors averaged 75.4% for the month, above the global average of 74.4%.
Global results showed an 8.6% improvement in passenger demand compared with February 2011. However, Tyler stressed that figures had been artificially inflated by weaker traffic during the Arab Spring a year ago and Brazil’s Carnival which fell in February this year, a month earlier than in 2011.
“Improvements in business confidence slowed in February,” he said. “This will limit the potential for business class travel growth.”
