Global air passenger traffic in March grew at its fastest monthly pace in a year—up 9.5% year-over-year—driven by a generally strong global economic backdrop, according to IATA. For Q1, passenger traffic was up 7.2%, comparable to the 7.0% growth pace set during the same period a year ago. Overall capacity increased 6.4% during the month, driving up the total market load factor 2.3 points to 82.4%, setting a new industry-wide load factor record for the second month in a row. Nonetheless, IATA cautioned that a moderation in passenger traffic growth is expected in 2018. “Demand for air travel remains strong … but rising cost inputs, particularly fuel prices, suggest that any demand boosts from lower fares will moderate going into the second quarter,” IATA CE Alexandre de Juniac said. <br/>
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The Trump administration’s decision Tuesday to withdraw from the 2015 accord known as the Iran nuclear deal appears likely to cost Boeing some US$8b worth of airliner sales to the Islamic Republic. Although in a statement Boeing said it will work with the US govt on “the next steps,” a pair of conditional contracts calling for the sale of 110 airplanes will become worthless unless the administration doesn’t fully re-impose sanctions and carves out some exceptions for airliners. Continued deliveries from Airbus and ATR, which began last year following issuance of licenses from the US Treasury Department, also appear threatened due to the high proportion of US content in their airplanes. <br/>
Following warming relations between North and South Korea, Pyongyang has rolled out a series of practical reconciliation measures, including opening a new air route to South Korea over the Pyongyang Flight Information Region. North Korea’s General Administration of Civil Aviation tabled the request to the International Civil Aviation Organization in February, which outlined the proposal for the establishment of a new Air Traffic Service (ATS) between Pyongyang and the Incheon FIR. ICAO officials had met with North Korean representatives in Pyongyang to discuss the request, as well as “navigational and safety matters.” Seoul’s Ministry of Land, Infrastructure, and Transport also has taken the request under review. The two countries have not maintained an established flight route between them since the armistice in 1953. <br/>
Representatives of the European Commission and the US govt were ready to sign an agreement in principle to settle their long-lasting dispute over wet-lease time limitations at the recent EU-US Joint committee meeting in The Hague. But the topic fell from the agenda at the last minute due to a “linguistic issue raised by a member state.” Sources said France apparently snubbed reviewing the text because of a lack of a French version. According to a draft agreement, the EU committed not to impose time limitations on the operation of wet leases between US airlines, or between US airlines and other airlines. The US, in turn, promised the same and will not impose time limitations on the operation of wet leases between European airlines, or between European airlines and other airlines for operations to and from the US. <br/>