Passenger demand up in April – Middle East laptop ban having negative effect

According to the International Air Transport Asociation, passenger numbers announced for April have revealed that revenue passenger kilometers (RPKs) rose 10.7% compared to April 2016, the highest rate hike in over six years. April capacity in available seat kilometers (ASKs) rose 7.1% compared to April 2016, while load factor increased 2.7% to 82%, a record for April.
The increase in numbers has been put down to both a pick-up in global economic activity, and lower airfares. Allowing for inflation, the cost of air travel in Q1 2017 was down 10%. On the other hand, the ban on the carriage of large portable electronic devices (PEDs) in cabins on flights from ten Middle Eastern and African airports to the US appears to have had a negative effect on Middle East-North America passenger traffic.
According to Alexandre de Juniac, IATA’s Director General and CEO. “April showed us that demand for air travel remains at very strong levels. Nevertheless, there are indications that passengers are avoiding routes where the large PED ban is in place. As the US Department of Homeland Security considers expanding the ban, the need to find alternative measures to keep flying secure is critical. If the ban were extended to Europe-to-US flights, for example, we estimate a $1.4 billion hit on productivity. And an IATA-commissioned survey of business travelers indicated that 15% would seek to reduce their travel in the face of a ban.”
For April international passenger markets, passenger demand rose 12.5% compared to April 2016, with all regions recording double-digit year-over-year traffic increases for the first time in 12 years. Total capacity climbed 7.7%, and load factor increased 3.5% to 81.5%.
For domestic passenger markets, demand rose 7.7% in April compared to April 2016, while capacity increased 6.2% and load factor consequently increasing 1.2% to 83.0%. All markets reported demand increases with the exception of Australia, which revealed a 2.1% decline.