GENEVA — June numbers are in and looks like global passenger traffic data is up across all regions, says IATA.
Demand, measured in total revenue passenger kilometres, or RPKs, rose by 7.8% compared to the same period a year ago across all regions, while capacity, measured in seat kilometres, or ASKS, increased by 6.5%. Load factor rose 1.0 percentage point to 81.9%.
For the first six months of 2017, the industry experienced a 12-year high in traffic growth (7.9%) and a record first half load factor of 80.7%.
Air travel recorded its fastest first-half growth in 12 years, pushing load factors to record highs. And the peak northern summer travel season is likely to be record-breaking.
“A brighter economic picture and lower airfares are keeping demand for travel strong. But as costs rise, this stimulus of lower fares is likely to fade. And uncertainties such as Brexit need to be watched carefully. Nonetheless, we still expect 2017 to see above-trend growth,” said Alexandre de Juniac, IATA’s Director General and CEO.
June international passenger demand rose 7.5% compared to June 2016, with all regions recording growth.
North American airlines’ demand rose 4.4% compared to June a year ago. Capacity climbed 4.1%, with load factor inching up 0.3 percentage points to 84.5%. The comparatively robust economic backdrop in North America is expected to continue to support outbound passenger demand. However, anecdotal evidence suggests that inbound tourism is being deterred by the additional security measures in place for travel to the U.S.
European carriers fared even better, with traffic rising 8.8% in June compared to June 2016, up from a 7.5% year-over-year increase recorded in May. Capacity climbed 6.5% and load factor rose 1.8% percentage points to 85.9%, highest among the regions. The stronger growth reflects both a favorable comparison with the year-ago period, as well as increased momentum in the regional economic backdrop.
“This is all good news. The demand for travel is strong and that, in turn, will make a positive contribution to the global economy. This growth will also further expose infrastructure deficiencies. In every part of the world airport and air navigation infrastructure is struggling to cope with demand. There are plenty of examples linking connectivity and economic prosperity. But few governments have been able to deliver on the imperatives of sufficient capacity, quality aligned with user needs and affordability. This year’s strong growth is a reminder that there is no time to lose,” said de Juniac.
