International air passenger growth ‘robust’ in July
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The International Air Transport Association (IATA) has revealed global passenger traffic results for July showing robust demand growth compared to July 2014 for both domestic and international traffic.
Total revenue passenger kilometres (RPKs) rose 8.2%, which was an improvement on the June year-over-year increase of 5.5%. July capacity (available seat kilometres or ASKs) increased by 6.5%, and load factor rose 1.4 percentage points to 83.6%. Results were given a boost by the timing of Ramadan, which fell partly in July this year but took place mostly in July in 2014. The holy month tends to subdue demand for air travel.
“July results were strongly positive but slowing global trade and the wild gyrations of stock exchanges around the globe suggest that we may be in for some turbulence in coming months,” said Tony Tyler, IATA’s director general and CEO.
July international passenger demand rose 8.6% compared to the same month in 2014, with airlines in all regions recording growth, including Africa for the first time this year. Total capacity climbed 6.5%, pushing load factor up 1.6 percentage points to 83.5%.
European carriers’ demand increased by 6.7%, reflecting economic recovery in the Eurozone, while capacity climbed 4.0% and load factor rose 2.2 percentage points to 87.3%, highest among the regions.
North American airlines’ traffic rose 5.3% compared to July a year ago, which was more than double the 2.6% rise achieved in June year over year. Capacity climbed 3.5% and load factor rose 1.4 percentage points to 86.5%. Expectations for better economic performance are supporting travel demand.
Middle East carriers experienced a 19.8% demand surge in July over the same month in 2014 buoyed by the timing of Ramadan. Capacity rose 17.7% and load factor climbed 1.5 percentage points to 79.6%.
Domestic travel demand rose 7.6% in July compared to July 2014. All markets showed growth with the strongest increases occurring in India and China. Domestic capacity climbed 6.5%, and load factor improved 0.8 percentage points to 83.6%.
| Year-on-Year Comparison | July 2015 vs July 2014 | YTD 2015 vs. YTD 2014 |
| RPK | ASK | PLF | RPK | ASK | PLF | |
| Australia | 2.8% | 1.9% | 79.8% | 0.2% | -0.4% | 75.7% |
| Brazil | 6.6% | 5.7% | 82.7% | 4.2% | 3.3% | 80.5% |
| China P.R. | 10.9% | 9.5% | 81.7% | 12.1% | 11.1% | 81.3% |
| India | 28.1% | 10.4% | 80.7% | 20.5% | 6.4% | 83.6% |
| Japan | 0.4% | -0.1% | 65.5% | 2.6% | 1.0% | 65.1% |
| Russian Federation | 8.8% | 12.2% | 82.7% | 6.5% | 10.1% | 72.5% |
| US | 5.9% | 5.5% | 88.4% | 4.1% | 4.3% | 85.3% |
| Domestic | 7.6% | 6.5% | 83.6% | 6.4% | 5.7% | 81.2% |
“Following a strong summer the outlook heading into autumn is unsettled to say the least. While passenger demand remains healthy, air cargo growth turned negative in July. The downward movement in stock markets around the globe reflects investors’ growing concerns about slowing trade and economic growth in emerging economies, as well as China’s continued shift towards domestic markets. Aviation’s connectivity creates economic opportunities and contributes to job creation. Governments looking to shore up consumer confidence and encourage spending should be encouraging greater connectivity by removing barriers to growth such as heavy taxes and charges and infrastructure constraints,” said Tyler.
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