Passenger growth slows in August: IATA

The International Air Transport Association (IATA) announced global passenger traffic data for August showing that demand (measured in total revenue passenger kilometers or RPKs) climbed 4.6 percent compared to the year-ago period.

This represented a slowing from the 6.4 percent increase recorded in July (revised). August capacity (available seat kilometers or ASKs) increased by 5.8 percent, and load factor slipped 0.9 percentage points to 83.8 percent.
 “Growth in passenger demand dipped to 4.6 percent. While that’s disappointing compared to the previous month’s performance, it is still healthy growth. And although terrorist attacks in Europe have dampened demand, the impact is ebbing,” said Alexandre de Juniac, IATA’s Director General and CEO.

 August international passenger demand rose 4.7 percent compared to August 2015. All regions recorded increases, but growth was dominated by airlines in the Middle East. Capacity climbed 6.5 percent, causing load factor to slide 1.4 percentage points to 83.9 percent.
 Asia-Pacific airlines’ August traffic climbed 5.6 percent compared to the year-ago period. Capacity rose 6.8 percent and load factor slipped down 0.9 percentage points to 81.9 percent. There are signs of Asian travelers continuing to be put-off by recent terrorism in Europe. Traffic on Europe-Asia routes grew just 1.5 percent in July, the most recent month for which route-specific figures are available, while international traffic growth on routes within Asia accelerated to 9.9 percent.
European carriers saw August demand climb 3.3 percent year-on-year. European traffic continues to be affected by the impact of terrorism, however, there are indications this may be easing. Capacity rose 5.1 percent, which caused load factor to drop 1.6 percentage points to 86.6 percent which still was the highest among regions.
Middle Eastern carriers posted a 10.3 percent traffic increase in August, while capacity climbed 13.7 percent, resulting in a 2.5 percentage point fall in load factor to 81.2 percent. North American airlines’ international demand rose 1.8 percent compared to August a year ago. However, seasonally-adjusted traffic has risen at an annualized rate of 7 percent since March, supported by transpacific demand and leisure routes to Central America and the Caribbean. Capacity rose 3.8 percent, causing load factor to drop 1.7 percentage points to 
85.3 percent.

Latin American airlines experienced a 6.7 percent demand rise compared to the same month last year, helped by strong demand on international routes within the region, spurred in part by the 2016 Summer Olympics in Brazil. Capacity increased by 4.0 percent and load factor rose 2.1 percentage points to 84.0 percent. Carriers in this region were the only ones to see a rise in load factor compared to the year-ago period.

African airlines’ traffic climbed 1.8 percent in August. International growth has tracked sideways since the start of the year, reflecting challenges in the major economies. Capacity rose 3.1 percent; with the result that load factor slipped 1.0 percentage point to 75.6 percent, lowest among regions.