But Some 'Weak Spots' Remain, Organization Says
There is continued strong demand growth for both domestic and international air traffic compared to the year-ago period, according to new data released by the International Air Transport Association (IATA).
Total revenue passenger kilometers (RPKs) rose 7.5%, which was in line with the 7.4% year-over-year expansion seen in September. October capacity (available seat kilometers or ASKs) increased by 5.7%, and load factor rose 1.4 percentage points to 80.5%. Growth in air travel has been stimulated by lower fares, particularly for leisure travel. Data for the first 8 months of the year show a 5% fall in average fares in currency-adjusted terms. It is estimated that the fall in fares has supported approximately 3 percentage points of the rise in traffic year-to-date.
“The air travel story is generally a good one. There are some weak spots. For example the Brazilian air transport sector is caught in perfect storm of a deepening recession, high costs and a weak currency. In most parts of the world we see strong demand for travel—exceeding the growth in capacity. Load factors are averaging over 80% and consumers are the big winners with fares trending downwards,” said Tony Tyler, IATA’s Director General and CEO (pictured).
October international passenger demand rose 7.6% compared to October 2014, with airlines in all regions recording growth. Total capacity climbed 6.1%, pushing up load factor 1.1 percentage points to 79.2%.
Demand for domestic travel climbed 7.3% in October compared to October 2014. There was a wide disparity in results, with Brazil and Australia both showing declines while China, India and Russia posted double-digit increases. Domestic capacity climbed 5.0%, and load factor improved 1.8 percentage points to 82.7%.
“The end of the year is a festive time around the world. But this year’s celebrations will be juxtaposed against the somber reality of recent terrorist activity in the Middle East and Europe. This, by all indications, also includes the downing of Metrojet 9268 with the loss of all aboard.
“Acts of terror, whether they occur on a city street or at 30,000 feet, will not get the better of us, or succeed in limiting the possibilities of our world. The most important response to acts and threats of terrorism is to show that we will not let the terrorists change our lives.
“That extends to aviation and tourism. Over 100,000 flights will bring a million people together today because of the efforts of 8.7 million people—aviation professionals. These efforts will create opportunities for business and leisure and for greater understanding among people and cultures. By doing so, flying is a force for good in our world. As we look to 2016 and beyond it’s a reality that should continue to inspire us all,” said Tyler.
(Source: IATA news release)
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