Strong passenger demand continues into 2016

Strong passenger demand continues into 2016

Posted By : STAT Times 09-03-2016 00:00:00


Mar 09, 2016: The International Air Transport Association (IATA) announced global passenger traffic results for January 2016 showing demand (revenue passenger kilometers or RPKs) rose 7.1 percent compared to January 2015. This was ahead of the 2015 full year growth rate of 6.5 percent. January capacity rose 5.6 percent, with the result that load factor rose 1.1 percentage points to 78.8 percent, the highest load factor ever recorded for the first month of the year.

"January maintained the strong traffic growth trend seen in 2015, showing the resilience of demand for connectivity despite recent turmoil in equity markets. The record load factor is a result of strong demand for our product and airlines making the most productive use of their assets. Underlying conditions point to another strong year for passenger traffic, with the latest decline in oil prices likely providing additional stimulus for air travel growth," said Tony Tyler, director general and CEO, IATA.

January 2016 (% year-on-year)
World share¹
RTK
ASK
PLF (%-pt)²         
PLF (level)³  
Total Market
100.0%
7.1%
5.6%
1.1%
78.8%
Africa
2.2%
11.0%
7.1%
2.5%
71.3%
Asia Pacific
31.5%
10.4%
7.9%
1.8%
78.5%
Europe
26.7%
4.0%
2.1%
1.4%
77.9%
Latin America
5.4%
5.1%
4.6%
0.4%
82.8%
Middle East
9.4%
10.5%
12.8%
-1.6%
77.9%
North America
24.7%
4.3%
2.9%
1.1%
80.7%
             ¹% of industry RPKs in 2015   ²Year-on-year change in load factor   ³Load factor level

January international passenger traffic rose 7.3 percent compared to the year-ago period. Capacity rose 5.9 percent and load factor rose 1.0 percentage point to 78.8 percent. All regions recorded year-over-year increases in demand.

Asia Pacific carriers recorded an increase of 10.3 percent compared to January 2015.

European carriers’ international traffic climbed 4.2 percent in January compared to the year-ago period. Capacity rose 2.6 percent and load factor rose 1.2 percentage points to 78.8 percent. Airline strikes and the shutdown of Russia’s Transaero caused the region’s traffic to fall in the last quarter of 2015.

North American airlines saw demand rise 2.4 percent in January over a year ago. North American international traffic growth was weakest among the regions, as carriers have focused on the stronger and larger domestic market.

Middle East carriers had the strongest year-over-year demand growth in January at 10.9 percent, helped by ongoing network and fleet expansion.

Latin American airlines’ traffic climbed 8.9 percent in January. Capacity rose 7.8 percent and load factor increased 0.8 percentage points to 82.5 percent, highest among the regions. Domestic traffic remains under pressure from economic difficulties in the region’s biggest economies, notably Brazil, but the strong growth in international demand shows little sign of slowing.

African airlines saw January traffic jump 12.1 percent compared to January 2015. This continues the strong upward trend in travel since mid-2015 that coincides with a jump in exports from the region over the same period.

January 2016 (% year-on-year)
World share¹
RTK
ASK
PLF (%-pt)²     
FLF (level)³       
Domestic
36.4%
6.8%
5.1%
1.3%
78.9%
Australia
1.1%
3.8%
2.3%
1.1%
76.9%
Brazil
1.4%
-4.1%
-2.6%
-1.3%
83.3%
China P.R
8.4%
11.9%
10.6%
0.9%
79.1%
India
1.2%
22.9%
21.9%
0.7%
84.7%
Japan
1.2%
1.2%
-4.3%
3.5%
64.7%
Russia Fed.
1.3%
-2.0%
-5.2%
2.2%
68.4%
US
15.4%
5.5%
3.7%
1.4%
81.0%
¹% of industry RPKs in 2015   ²Year-on-year change in load factor   ³Load factor level

Domestic air travel rose 6.8 percent in January year-on-year. Capacity rose 5.1 percent and load factor was 78.9 percent, up 1.3 percent percentage points.

India’s domestic air travel soared 22.9 percent in January compared to a year ago. The Indian market overtook both Australia and Japan during 2015 and is currently level with Russia at around 1.2 percent of global RPKs.

Russian domestic traffic slipped 2.0 percent in January. Despite the decline, the Russian domestic load factor reached an all-time January high as capacity fell at a faster rate, suggesting that local carriers have absorbed traffic affected by the shutdown of Transaero.


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