IATA: Passenger demand continues on moderate upward path


IATA: Passenger demand continues on moderate upward path

eTurboNews Syndication:

The International Air Transport Association (IATA) announced global passenger traffic results for September 2019 showing that demand (measured in revenue passenger kilometers or RPKs) climbed 3.8% when compared to same month this past year, broadly unchanged from August’s performance. Capacity (available seat kilometers or ASKs) increased by 3.3%, and load factor climbed 0.4% percentage indicate 81.9%, any September that was an archive for.

“Month of substandard demand growth september marked the eighth consecutive. Given the surroundings of declining world trade tariff and activity wars, rising geopolitical and political tensions and a slowing global economy, it really is difficult to start to see the trend reversing in the near term,” said Alexandre de Juniac, IATA’s Director CEO and General.

September 2019
(% year-on-year)
World share1 RPK ASK PLF (%-pt)2 PLF (level)3
Total Market  100.0% 3.8% 3.3% 0.4% 81.9%
Africa 2.1% 1.7% 3.4% -1.2% 72.1%
Asia Pacific 34.5% 4.8% 5.7% -0.7% 80.1%
Europe 26.8% 2.6% 2.3% 0.2% 86.6%
Latin America 5.1% 3.3% 1.3% 1.6% 81.9%
Middle East 9.2% 2.0% 0.3% 1.2% 75.0%
North America 22.3% 5.1% 2.7% 1.8% 82.8%
1% of industry RPKs in 2018  2Year-on-year change in load factor 3Load Factor Level

International Passenger Markets

September international passenger demand rose 3.0%, september 2018 compared to, that was a decline from 3.6% year-over-year growth achieved in August. All regions recorded traffic level increases, led by airlines in THE UNITED STATES. Capacity climbed 2.6%, and load factor edged up 0.3 percentage indicate 81.6%.

• September traffic increase 3 asia-pacific airlines saw.6% when compared to year-ago period, a rise on the 3.3% annual growth recorded in August. Regardless of the uptick, growth remains well below that observed in 2018. That is occurring amid a weaker economic backdrop in a few of the region’s key states along with trade tensions between your China and US and, recently, between Japan and South Korea. Political unrest in Hong Kong in addition has contributed to subdued regional demand and resulted in sharp capacity cuts to/from the hub. Capacity rose 5.0% and load factor slid 1.1 percentage points to 78.2%.

• European carriers experienced a 2.9% rise in September traffic, the region’this season and a decline from the 4 s weakest performance.2% year-over-year rise recorded in August. Besides slowing economic faltering and activity business confidence in lots of of the main element European economies, the effect was suffering from the demise of several airlines also, alongside pilot strikes. Capacity rose 2.5%, and load factor climbed 0.3 percentage indicate 86.9%, that was the best among regions.

• Middle Eastern airlines posted a 1.8% traffic upsurge in September, that was a slowdown from the 2.9% rise in August. Capacity was just 0 up.2%, with load factor climbing 1.2 percentage points to 75.2%. International traffic growth is still affected by a variety of structural challenges in a few of the region’s large airlines, geopolitical risks and weaker business confidence in a few national countries.

• UNITED STATES carriers’ international demand climbed 4.3% in comparison to September 2018, well from the two 2 up.9% growth recorded in August and the strongest performance on the list of regions. Capacity rose 1.6%, and load factor accelerated 2.2 percentage points to 83.0%. Demand has been supported by solid consumer spending and continued job creation.

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• Latin American airlines had a 1.2% demand upsurge in September in comparison to this past year, that was from 2 down.3% growth in August. Capacity fell 1.6% and load factor surged 2.3 percentage points to 82.5%. Latin American carriers continue steadily to face several challenges including some weaker economic and business confidence outcomes, social and political unrest in key states, and currency contact with the strengthening US dollar.

• African airlines’ traffic climbed 0.9% in September, a steep fall-off from the 4.1% growth recorded in August. Looking through the recent volatility in the real numbers, however, traffic growth for the 3rd quarter of 2019 remains solid at around 3% year-over-year. Capacity rose 2.5%, however, and load factor dipped 1.1 percentage points to 71.7%.

Domestic Passenger Markets

Demand for domestic travel climbed 5.3% in September in comparison to September 2018, that was an improvement on the 4.7% annual growth recorded in August. Capacity rose 4.7% and load factor increased 0.5 percentage indicate 82.3%.

September 2019
(% year-on-year)
World share1 RPK ASK PLF (%-pt)2 PLF (level)3
Domestic 36.1% 5.3% 4.7% 0.5% 82.3%
Australia 0.9% 1.8% 1.4% 0.3% 81.7%
Brazil 1.1% 1.7% 0.3% 1.1% 81.7%
China P.R. 9.5% 8.9% 10.1% -0.9% 83.5%
India 1.6% 1.6% -0.4% 1.7% 85.8%
Japan 1.1% 10.1% 6.5% 2.5% 77.9%
Russian Fed. 1.5% 3.2% 5.5% -1.9% 85.7%
US 14.0% 6.0% 3.8% 1.7% 82.7%
1% of industry RPKs in 2018  2Year-on-year change in load factor 3Load Factor Level

• Japanese airlines saw domestic traffic climb 10.1% in September, well through to the two 2.0% annual increase recorded in August. However, in September 2018 due to the disruption due to Typhoon Jebi email address details are distorted by the weak outcome.

• US airlines’ domestic traffic surged 6.0% in September in comparison to September 2018, from 3 up.9% growth in August year over year. Much like Japan, the performance is exaggerated due to the softer demand environment experienced in 2018 somewhat. Nevertheless, the demand environment is robust.

The Bottom Line

“They are challenging days for the global air transport industry. Pressure is via many directions. In a matter of weeks, four airlines in Europe went bust. Trade tensions are high and world trade is declining. The IMF revised down its GDP growth forecasts for 2019 to 3 recently.0%. If correct, this might function as weakest outcome since 2009, once the world was fighting the Global FINANCIAL MELTDOWN still.

“Sometimes like these, governments should recognize the charged power of aviation connectivity to ignite the economy and drive job creation. Instead, many governments&mdash too;in Europe in particular—are fixated on aviation because the goose that lays the golden eggs of fees and taxes. It’s the incorrect approach. Aviation may be the business of freedom. Governments should harness its capacity to drive GDP growth, not tie it down through punitive and heavy tax and regulatory regimes,” said de Juniac.

Author: George Taylor

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