Willie Walsh, Iata's director general, said governments were 'still playing science politics' when it comes to travel and Covid-19 measures. Photo: Iata
Willie Walsh, Iata's director general, said governments were 'still playing science politics' when it comes to travel and Covid-19 measures. Photo: Iata
Willie Walsh, Iata's director general, said governments were 'still playing science politics' when it comes to travel and Covid-19 measures. Photo: Iata
Willie Walsh, Iata's director general, said governments were 'still playing science politics' when it comes to travel and Covid-19 measures. Photo: Iata

Global travel demand continued to improve in November, Iata says


Deena Kamel
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Global airlines continued to benefit from increasing air travel demand in November, with all regions recording growth, according to the International Air Transport Association (Iata).

Total passenger traffic worldwide increased 41.3 per cent annually in November, reaching 75.3 per cent of pre-pandemic levels, Iata said in its monthly report.

International passenger traffic nearly doubled from the previous November, rising 85.2 per cent and also reaching 73.7 per cent of November 2019 levels.

Demand for domestic travel in November also increased 3.4 per cent year-on-year, when travel restrictions in China continued to weigh on the segment. Total domestic traffic was at 77.7 per cent of November 2019 levels.

"Traffic results in November reinforce that consumers are thoroughly enjoying the freedom to travel," said Willie Walsh, Iata's director general.

Commenting on the reopening of China's borders for international travel in January, he said many governments were "still playing science politics", as countries impose testing requirements on Chinese travellers.

"Governments should focus on using available tools to manage Covid-19 effectively — including improved therapeutics and vaccinations — rather than repeating policies that have failed time and again over the last three years,” he said.

All regions recorded a modest increase in seat capacity, lifting industry-wide seat capacity slightly in November compared with October, Iata said.

Recovery trends for international traffic in the premium and economy-cabin classes "remain broadly aligned", Iata said.

Demand for economy-class seats — including premium economy — reached 79.6 per cent of its January 2020 level in July last year.

Premium-class demand — referring to first and business-class cabins — fared nearly as well, recording 74.2 per cent of the January 2020 level.

Middle Eastern airlines recorded an 84.6 per cent year-on-year growth in November, virtually unchanged from October. Seat capacity in November increased 45.4 per cent year-on-year. Load factor, a measure of how well airlines fill available seats, climbed 16.5 percentage points to 77.7 per cent.

Global air cargo demand 'softened'

Global air freight demand in November continued to soften as economic headwinds persisted and the pandemic-induced cargo boom lost steam, Iata said in its monthly report.

Global demand, measured in cargo tonne-kilometres, fell 13.7 per cent compared with November 2021, the data showed.

Capacity, measured in available cargo tonne-kilometres, was 1.9 per cent below November 2021 levels. This was the second year-on-year contraction following the first decline in October since April 2022.

"Air cargo performance softened in November, the traditional peak season. Resilience in the face of economic uncertainties is demonstrated with demand being relatively stable on a month-to-month basis," Mr Walsh said.

Several factors influenced the operating environment, including shrinking in global new export orders in major economies, a sharp appreciation in the US dollar and a reduction in inflation in producer prices in November compared with October.

"Market signals are mixed," Mr Walsh said. "November presented several indicators with upside potential: oil prices stabilised, inflation slowed and there was a slight expansion in goods traded globally.

"But shrinking export orders globally and China’s rising Covid cases are cause for careful monitoring."

UEFA CHAMPIONS LEAGUE FIXTURES

All kick-off times 10.45pm UAE ( 4 GMT) unless stated

Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid

Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Basquiat in Abu Dhabi

One of Basquiat’s paintings, the vibrant Cabra (1981–82), now hangs in Louvre Abu Dhabi temporarily, on loan from the Guggenheim Abu Dhabi. 

The latter museum is not open physically, but has assembled a collection and puts together a series of events called Talking Art, such as this discussion, moderated by writer Chaedria LaBouvier. 

It's something of a Basquiat season in Abu Dhabi at the moment. Last week, The Radiant Child, a documentary on Basquiat was shown at Manarat Al Saadiyat, and tonight (April 18) the Guggenheim Abu Dhabi is throwing the re-creation of a party tonight, of the legendary Canal Zone party thrown in 1979, which epitomised the collaborative scene of the time. It was at Canal Zone that Basquiat met prominent members of the art world and moved from unknown graffiti artist into someone in the spotlight.  

“We’ve invited local resident arists, we’ll have spray cans at the ready,” says curator Maisa Al Qassemi of the Guggenheim Abu Dhabi. 

Guggenheim Abu Dhabi's Canal Zone Remix is at Manarat Al Saadiyat, Thursday April 18, from 8pm. Free entry to all. Basquiat's Cabra is on view at Louvre Abu Dhabi until October

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What is a robo-adviser?

Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

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Real Madrid: Isco (33'), Ramos (38'), Vázquez (84'), Jovic (90' 2)

Persuasion
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Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
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Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

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