KUALA LUMPUR (Aug 25): Global air passenger traffic grew 4.5% in June 2016 and 5.6% for the first half of the year, according to Airports Council International (ACI).

In a statement yesterday, ACI said even though airports reported an increase of 4.0% in international passenger traffic and an increase of 5.1% in domestic traffic in June 2016, international passenger traffic grew faster than the domestic component during the first six months of 2016 (6% versus 5.4%).

It said the lower than expected growth rates during June 2016 in international traffic in Europe and the slowdown in the Middle East testified to the fragile and uncertain economic conditions, political instability and passenger sensitivity to the wave of terrorist attacks.

ACI said these events weighed on travel confidence and air transport demand.

“Nevertheless, except for Africa where the drop in passenger traffic was apparent and anticipated (-4.4% year-to-date), all regions posted growth in passenger volumes, ranging from 1.7% in the recessionary Latin America-Caribbean region to the buoyant Asia-Pacific and Middle East regions, which both grew strongly at 8.8% on a year-to-date basis.

“The mature markets of Europe and North America both grew 4.9% during the first half of the year,” it said.

Aci said air freight markets were substantially weaker than passenger markets, posting marginal 0.5% growth in total freight on a year-to-date basis, largely due to a subdued growth in emerging markets and developing economies and a modest recovery in advanced economies (4.1% and 1.8% in GDP respectively, as projected by the International Monetary Fund for 2016).

It explained that the 0.5% growth rate in global freight volumes comprised 0.3% in international freight and 1.0% in domestic freight on an annualized basis.

ACI said the lackluster performance of global industrial activity and trade due to China's economic transition, the weak growth of the Japanese economy and the weaker than expected growth of the United States, combined with recessions in Brazil and Russia, have all had a negative impact on air freight markets.

It said three regions plunged into negative territory in terms of year-over-year changes in freight volumes on a year-to-date basis.

“North America, Latin America-Caribbean and Africa reported freight traffic losses of 2.1%, 0.9% and 0.1% respectively. Asia-Pacific and Europe reported  freight traffic growth of 1.0% and 2.3% respectively, while only the Middle East grew a confident 4.5% over the course of the first six months in 2016,” it said.