Domestic demand lags behind capacity hikes

Domestic demand lags behind capacity hikes
By admin


Australian domestic demand climbed 2.3% in May but loads dipped as capacity continued to rise, latest figures have shown.

The International Air Transport Association said the number of available seats on Australia’s route networks was 5% higher than the same month last year.

The disparity between that and the slower rise in demand led to a 1.9 percentage point decrease in loads to just over 74%.

“After solid growth throughout 2012, above 5%, the growth trend for Australia air travel has slowed in 2013,” IATA said in its monthly update.

It warned that a further slowdown could be on the cards as economic growth continues to decline along with consumer spending. The “demand base” for air travel could erode, IATA said.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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