Global Passenger Traffic Growth Slows
The growth in worldwide passenger traffic demand slowed slightly in July as the effect of lower airfares eases off.
The International Air Transport Association (IATA) said in its monthly report that July’s passenger traffic demand rose 6.8 percent in revenue passenger km (RPK) terms over the previous year. That was down from the 7.7 percent growth reported for June 2017.
“The appetite for air travel remains very strong. However, the stimulus effect of lower fares is softening in the face of rising cost inputs. This suggests a moderating in the supportive demand backdrop,” IATA Director General Alexandre de Juniac said in a statement.
All regions reported growth, with Asia Pacific leading the pack on an 8.4 percent increase. Europe and Latin America both showed increased passenger traffic of 7.7 percent, with the Middle East on 4.6 percent and North America on 4.5 percent.
Capacity in available seat km terms (ASK) rose by 6.1 percent, resulting in an overall 0.6 percentage point increase in load factor to 84.7 percent. Regionally, Asia Pacific put on the biggest capacity increase in July with 7.9 percent, Latin America added 7.3 percent, Europe 6.2 percent, and North America 4.5 percent.