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Possible trade war involving the US could impact air travel demand: IATA

Possible trade war involving the US could impact air travel demand: IATA

Possible trade war involving the US could impact air travel demand: IATA
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By CNBCTV18.COMMar 24, 2018 10:32:47 AM IST (Updated)

According to the report, India has reported a growth of 17.9 percent in January - a two basis point increase from the previous month.

Concerns over a possible trade war involving the US could have a serious dampening effect on global market confidence, spilling over into demand for air travel," said Alexandre de Juniac, IATA's Director General and CEO on March 8, 2018.

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Juniac said that despite the slower start to 2018, economic momentum is supporting rising passenger demand in 2018.
IATA is International Air Transport Association (IATA).

The association announced worldwide passenger traffic results for January 2018 that showed traffic slowest year-over-year increase of revenue passenger kilometers (RPKs).
IATA said that results were affected by temporary factors including the later timing of the Lunar New Year in 2018 as well as less favorable comparisons with the strong upward trend in traffic seen in late 2016-early 2017.
Talking about India, the report registered a growth of 17.9 percent in January 2018 - a two basis point increase from the previous month.
Even though there is a marginal increase, the data points that the RPK (revenue passenger kilometers) rose from its November record - 16.4 percent - making it among the fastest.
RPK is calculated by multiplying the number of passengers, who pay for the fare, etc. into the distance travelled.
In January this year, Asia recorded a 6.6 percent increase in capacity out of which India has contributed the maximum share. China followed with 8.9 percent rise.
The report says, "For Asia-Pacific carriers, the large markets in India, China and Japan mean that domestic travel accounts for 45% of the region's operations."
The European carriers’ demand overtook Asia’s 4.6 percent increase with a 6.0 percent rise in the 30-day period of January 2-18.
The Middle East carriers showed the weakest growth with their demand up by 0.5 percent compared to January 2017.
This, according to the report, is 'the slowest pace since September 2008.'
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