Global air passenger growth rises in November
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
The International Air Transport Association (IATA) has revealed global passenger traffic results for November 2016 showing the strongest demand growth in nine months.
Total revenue passenger kilometres (RPKs) rose 7.6% compared to November 2015.
Capacity (available seat kilometres or ASKs) increased by 6.5%, and load factor rose 0.8 percentage points to 78.9%.
“Stronger demand for air travel reflects—and is supporting–a pick-up in the global economic cycle. As the stimulus effect of lower oil prices recedes in the rear view mirror, the strength of the economic cycle will play a key role in the pace of demand growth in 2017,” said Alexandre de Juniac, IATA’s Director General and CEO.
November international passenger demand rose 8.0% compared to the year earlier, with airlines in all regions showing growth. Total capacity climbed 6.8%, and load factor edged up 0.9 percentage points to 77.1%.
European carriers saw demand increase by 8.3% in November 2016, while traffic grew at an annualised pace of 12% over the past five months or so. This suggests that the disruption caused by terrorism and political instability has lifted, against a backdrop of a growing Eurozone economy. Capacity rose 6.8% and load factor climbed 1.1 percentage point to 80.8%.
Middle East carriers led all regions with a 12.2% demand increase. But the upward trend in the region’s seasonally adjusted traffic has paused, with November’s level coming in unchanged from that of July. Capacity rose 11.6% and load factor rose 0.3 percentage points to 68.7%.
“The airline industry continues to deliver strong results. In 2017, for a third consecutive year, the industry’s return on invested capital will exceed the cost of capital. Passengers benefit from the industry’s success. Travel has never been more accessible—with great fares, many options and more destinations. Nevertheless uncertainty lies ahead. The threat of terrorism, questions over the durability of the economic upswing, rising oil prices and increasing protectionist rhetoric are among the concerns. The industry has reshaped itself and strengthened its resilience to shocks. We should see another solid year of collective profitability for the airlines in 2017. But we must be vigilant,” said de Juniac.
Comments are closed.