IATA Reports Passenger Demand Bounce
IATA hailed a rebound in passenger demand during October after a softer September was blamed on weather-related disruptions.
October’s revenue passenger km demand was up 6.3 percent compared to the same month last year. It beat September’s 5.5 percent, which was an eight month low.
“October’s healthy performance is reassuring after the slower demand growth in September,” IATA Director General Alexandre de Juniac said. “However, the bigger picture is that traffic growth has moderated compared to earlier in the year, reflecting a more mixed economic backdrop and reduced demand stimulation from lower fares.”
Overall, airlines added 6.3 percent capacity in October expressed in available seat kms. The resulting load factor was flat at 81.1 percent.
Regionally, Asia Pacific reported the highest demand growth at 7.6 percent, closely followed by Europe’s 7.4 percent. Latin America wasn’t far behind with 6.5 percent, while North America saw a 4.6 percent boost.
All regions added capacity in October, ranging from Latin America’s 9.1 percent to Africa’s 1.3 percent. Asia Pacific on 7.0 percent lead Europe’s 6.8 percent and North America’s 4.8 percent rises.
“Demand for air travel is strong as we head into the holiday travel season,” IATA’s de Juniac said. “Trade wars and uncertainty around the political and economic impact of Brexit remain concerns but the recent easing of fuel prices is a welcome development.”