Passenger Demand Increases, But Laptop Ban A Drag

Global passenger traffic demand rose in April at its fastest rate in six years, but the ban on some electronic devices is having an effect, IATA reported in its monthly update.

The International Air Transport Association report said passenger traffic rose by 10.7 percent compared to April 2016, as global economic activity picked up and air fares dropped.

After allowing for inflation, the cost of air travel was 10 percent lower in the first quarter of 2017, compared to last year, and IATA said that falling air fares accounted for around half the demand growth in April.

IATA Director General Alexandre de Juniac said that although air travel demand is strong, the US and UK ban on larger electronic devices in aircraft cabins on some routes is having a negative effect.

“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,” de Juniac said.

“As the US Department of Homeland Security considers expanding the ban, the need to find alternative measures to keep flying secure is critical,” he added.

IATA estimates that if the ban were extended to Europe-to-US flights, it would cause a USD$1.4 billion hit on productivity, and that 15 percent of business travellers would seek to reduce their travel.

Passenger traffic demand in revenue passenger kms (RPK) rose by 10.7 percent overall in April, the strongest rise for six years. All regions showed growth, with Africa topping the list with a 15.4 percent increase in RPKs. Europe was second with a 14 percent increase, and Latin America third on 11.7 percent. North America reported a 6.7 percent RPK increase.

Capacity in available seat km (ASK) rose in all regions, but at a lower level. The Middle East led the chart for capacity growth with a 9.1 percent increase, Asia Pacific was second with 8.1 percent, narrowly beating Europe on 8.0 percent. Overall, ASK capacity was up 7.1 percent.

Passenger load factors rose in all regions, with Africa showing the biggest increase, up 6.2 percentage points to 73.2 percent. Europe was second with a 4.4 point increase to 84.6 percent. North America returned a more modest 2.0 percentage point increase to 84.2 percent.