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Wed, May 11, 2016

IATA Notes Moderating Demand Growth In March

Revenue Passenger Kilometers Increased, But Capacity Outpaced Demand

The International Air Transport Association (IATA) announced global passenger traffic results for March showing that demand (measured in revenue passenger kilometers, or RPKs) rose 5.3%, compared to the same month last year. Capacity grew slightly faster at 5.9% which pushed the average load factor down by half a percentage point to 79.6%.

March performance shows a moderate slowdown on the year-on-year growth rates recorded in January (7.2%) and February (8.6%) even after adjusting for the leap-year impact in February. Demand for international traffic grew significantly more quickly (6.2%) than that for domestic travel (3.7%).
 
“While in line with long-term trends, demand growth in March represented a slow-down compared to January and February. It is premature to say whether this marks the end of the recent very strong results. We do expect further stimulus in the form of network expansion and declines in travel costs. However, the wider economic backdrop remains subdued,” said Tony Tyler, IATA’s Director General and CEO.

Domestic demand rose 3.7% in March compared to March 2015, a dramatic slowdown from the leap year-aided 7.8% growth recorded in February. This was driven primarily by performance in the two largest markets, the US--which accounts for two of every five domestic passengers--and China. Domestic capacity climbed 4.3%, and load factor retreated 0.4 percentage points to 81.6%.

“In just under a month Dublin will become the focus of the global air transport industry, when the 72nd IATA Annual General Meeting and World Air Transport Summit takes place there, 1-3 June. Europe is the world’s largest international market in terms of traffic flown by its carriers. And aviation supports 12 million European jobs and 4.1% of the continent’s GDP. But aviation could do much more if governments would address the triple whammy of high taxes, overly-complex and punitive regulations, and inadequate and inefficient infrastructure. Making Europe an easier place to do business will help aviation deliver even greater benefits to the economy,” said Tyler.

(Source: IATA news release)

FMI: www.iata.org

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