Another strong year for air travel demand in 2016

The International Air Transport Association (IATA) announced full-year global passenger traffic results for 2016 showing demand rose 6.3% compared to 2015 (or 6.0% if adjusted for the leap year). This strong performance was well ahead of the ten-year average annual growth rate of 5.5%. Capacity rose 6.2% (unadjusted) compared to 2015, pushing the load factor up 0.1 points to a record full-year average high of 80.5%. A particularly strong performance was reported for December with an 8.8% rise in demand outstripping 6.6% capacity growth.
Asia Pacific carriers recorded a demand increase of 8.3% compared to 2015, which was the second-fastest increase among the regions. Capacity rose 7.7%, pushing up the load factor 0.4 percentage points to 78.6%.
European carriers’ international traffic climbed 4.8% in 2016. Capacity rose 5.0% and despite a decline of 0.1 points to 82.8%, the load factor remains the highest among the regions.
North American airlines saw demand rise 2.6% in 2016. Most of the growth occurred in the second quarter, and traffic has been strongest on Pacific routes. The North Atlantic, by contrast, has been fairly flat. Capacity rose 3.3%, reducing the load factor by 0.5 points to 81.3%.
Middle East carriers had the strongest regional annual traffic growth for the fifth year in a row. RPKs expanded 11.8%, consolidating the region’s position as the third-largest market for international passengers. Capacity growth (13.7%) continued to outstrip demand, with the result that the load factor fell 1.3 points to 74.7%.
Latin American airlines’ traffic rose 7.4% in 2016. Capacity rose 4.8% and load factor strengthened by 1.9 points to 81.3%. International traffic from Latin America remains very healthy despite some economic and political uncertainty in the region’s largest market, Brazil.
African airlines had their best growth performance since 2012, up 7.4%. Growth is being underpinned by strong demand on routes to/from Asia and the Middle East. Capacity exactly matched demand, with the result that the load factor remained flat at 67.7%.