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International / Airports
International passengers rose by 10% in May
By Doug Newhouse, 1 July 2010

ACI World reports that international passenger numbers grew by just over 10% at airports worldwide in May 2010 compared to May 2009, while domestic air traffic also rose at a more modest rate of 6%. Top regional results were seen in Latin America-Caribbean (+32% international and +18% domestic) and Asia-Pacific (+18.5% international and +11% domestic).

The global airports' association said that overall growth in North America (+2.5%) and Europe (+5.2%) was more modest, although North America reported a strong 11.5% increase in international passengers, which in part reflects the business development plans of North American carriers.

Both Africa (+9%) and the Middle East (+15%) delivered robust performances in May. As expected, the significant decline of air traffic in April caused by the Icelandic volcanic eruption did not have a lasting effect, and air traffic has resumed the growth path it had been following since August 2009.

TRAFFIC DEFINITELY IMPROVING
Commenting, ACI Director of Economics Andreas Schimm said: "Traffic is without a doubt on the rise. But there are a few considerations to keep in mind when analysing the figures. The Latin America-Caribbean region is comparing against low results in May 2009 when the outbreak of the H1N1 virus significantly dampened air travel demand across the region.

"The ensuing ripple effect in North America and Asia Pacific, where the fear of flu contagion slashed international travel, partially skews the figures and thus explains some of the extraordinary increases we observe this month."

ACI points to the increases at Cancun (+108%) and Mexico City (+46%) as good examples, while overall the Latin America-Caribbean region was supported by continued strong domestic traffic growth, as seen in Brazil and Argentina.

Airports in North America that suffered from the H1N1 outbreak but have now rebounded include Dallas Fort Worth (+20%), Los Angeles (+16%), Toronto Pearson (+14%), New York JFK (+11%) and Miami (+10.5%).

However, domestic traffic in North America (+0.8%) continues to stagnate as carriers are focused on increasing yields and load factors. The airports growing in the domestic market are New York LGA (+15%), Boston (+7%), Baltimore (+5%) and San Francisco (+5%). All these airports have seen expansion of services by Southwest and Virgin America respectively. Cincinnati (-31% total) is suffering from being dropped as a hub of Delta Airlines.

RUSSIA AND TURKEY 'BRIGHT SPOTS'
In Europe, Russia and Turkey were bright spots and much of the traffic increases here can be attributed to traffic between these two countries. The seven top performing airports in May are located in these regions, reporting growth rates between 20% and 100%. Airports in the UK continue to suffer declines as aviation taxes, weak currency and British Airways' cabin crew strikes take a toll on the industry.

Schimm added: "It is a worry to see all nine UK airports in the sample with negative figures. The UK represents one of the world's largest aviation markets, yet is the only significant market in 2010 together with Ireland that keeps shrinking. First quarter passenger volumes in the UK were already 3% down on top of the declines a year earlier.

"Adding additional pressure by increasing so-called green taxes and driving passengers away through strike action is not the recipe to turn the situation around."

CHINA UP - BANGKOK DOWN
Meanwhile, in the Asia-Pacific region, international passenger traffic in China rose significantly in part due to the beginning of the Expo 2010 in Shanghai. Bangkok was the only airport in the region with a decline (-10%), the result of violent unrest in the centre of Bangkok.

Overall, the major hubs in the region reported double-digit growth, in part a result of declines in May 2009. Results for five months of the year are encouragingly steady with international traffic and domestic travel rising strongly (+14.8% and +10.7% respectively).

In the Middle East, May traffic was business as usual with Muscat/Oman leading growth at +26%, followed by Beirut (+21%), Dubai (+14%) and Abu Dhabi (+12%). In the Africa region, popular tourist destinations Cairo (+13.6), Hurghada (+25%), Marrakech (+17%), and Sharm el Sheik (+21.5%) were notable leaders in growth.



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