The International Air Transport Association (IATA) has released May’s global passenger traffic results, revealing that compared to May 2016, revenue passenger kilometers (RPKs) was up 7.6%, though down from 10.9% growth in April. Capacity was up 6.1% and load factor was up 1.2% to 80.1%, a record high for the month of May.
For the beginning of the second quarter, air fares were down approximately 6% compared to 2016, which it is believed is responsible for two-fifths of annual growth in passenger traffic for the month of May. However, business confidence has softened and the effect of this fare stimulus is likely to diminish through rising airline cost pressure. Passenger demand, though, should remain well supported during the peak travel months of July and August.
According to Alexandre de Juniac, IATA’s Director General and CEO, “Passenger demand is solid. And we don’t foresee any weakening over the busy summer months in the Northern Hemisphere. But the rising price of fuel and other input costs is likely to see airlines’ ability to stimulate markets with lower fares taper over the coming months. In parallel, rising trade protectionism and barriers to travel are worrying trends that, if unchecked, could impact demand. As a business, airlines depend on borders that are open to trade and people.”
International Passenger Markets:
International traffic demand rose 7.6%, with airlines in all regions recording growth, led by airlines in Africa for a second consecutive month. Total capacity climbed 5.7%, with load factor rising 1.4 percentage points to 78.5%.
Domestic Passenger Markets:
Domestic demand rose 7.9% in May compared to May 2016, down slightly from the 8.1% year-on-year growth recorded in April. Results varied widely, with China, India, Japan and Russia showing double-digit percentage growth while other regions were in the low single-digit range.
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IATA’s passenger figures for May show more moderate, but still strong demand
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