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Demand for air travel accelerates in May - IATA

Reuters - UK Focus

BERLIN, July 2 (Reuters) - Global demand for air travel continued to rise in May, although there are storm clouds on the horizon, the International Air Transport Association (IATA) said on Thursday.

Air passenger traffic in terms of revenue passenger kilometres rose 6.9 pct in May, against a 5.7 percent increase recorded for April, IATA said in its monthly passenger data release.

"The financial crisis in Greece and recent weakness in regional trade activity in Asia-Pacific have the potential to dampen performance in these markets in the coming months," IATA Director General Tony Tyler said in a statement.

IATA also said capacity increased more slowly than demand, by 6.5 percent, leading to a 0.3 percentage point increase in the load factor, or how full planes are, to 79.3 percent in the month. (Reporting by Jonathan Gould)