Ebbing air-travel demand set to take gloss off IATA meeting

Airline chiefs from around the world have begun gathering for their annual meeting against a background of increasing concern about a slowdown in demand just as carriers pile on capacity to exploit low oil prices. Only a few months ago, this week’s IATA symposium in Dublin looked set to be dominated by talk of record profits and a rush to add new routes and aircraft. Now, evidence of ebbing demand is raising concerns within an airline industry committed to buying record numbers of new aircraft. The market for flights is being hurt even as cheaper jet fuel encourages carriers to offer some of the lowest fares in years. Manufacturers are also feeling the pinch, with Airbus Group SE’s acknowledging Tuesday that an order dearth so far this year may be part of a wider trend, though one it said was inevitable given the size of outstanding order books. IATA, which represents 260 airlines accounting for 83 of global air traffic, revealed Monday that global passenger traffic grew only 4.6% in April -- the slowest pace since January 2015. Capacity gained 4.9 percent, so that, on average, aircraft flew with more seats empty.<br/>The industry group said that while the March 22 terrorist attacks in Brussels, which closed the Belgian capital’s main airport, were partly to blame for the April numbers, a negative underlying trend may also be emerging. “There are some longer-term clouds over the pace of demand growth,” IATA CEO Tony Tyler said. “The stimulus from lower oil prices appears to be tapering off. And the global economic situation is subdued. Demand is still growing, but we may be shifting down a gear.” IATA will provide an update on its latest thinking Thursday.<br/>