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Air Travel Slows in May as High Jet Fuel Prices Weigh on Demand, TPH Says

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Global air travel activity weakened in May, with US passenger volumes slipping below year-earlier levels as elevated jet fuel prices linked to the Iran conflict continued to pressure airlines and travelers, TPH Energy strategists said on Tuesday.

Matthew Blair, analyst at TPH Energy, said the average number of passengers passing through US airport security checkpoints rose 3% from April, but traffic fell 1% from a year earlier.

The decline comes as higher fuel costs have translated into significantly more expensive airfares, with US ticket prices climbing more than 20% from a year ago.

The softening demand signals emerging strains on consumer travel budgets amid higher transportation costs and broader concerns about the economic fallout from the Middle East conflict, which has driven energy prices to record highs.

"Air travel trends weakened in the US and globally in May, continuing to reflect the impacts of the Iran war and soaring jet fuel prices," Blair said.

Meanwhile, Europe showed relative resilience, with the monthly average of daily flights in the region's airspace increasing 7% from April. TPH analysts said the improvement lifted activity to 1% above year-earlier levels, compared with a 1% annual decline recorded in April.

The European recovery contrasted with broader global trends. Worldwide daily flights averaged 1% lower in May than in April, the analysts said, citing FlightRadar24 data. Global activity remained above year-ago levels but slowed to an 8% annual increase, down from 10% growth in April.

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