IATA Reports Strong August, Warns On Brexit

August was another strong month for passenger demand, with a 6.4 percent increase over the previous year.

The result was a shade over July’s 6.1 percent increase in revenue passenger km terms, the International Air Transport Association said in its monthly update.

August’s available seat km capacity was up 5.5 percent, resulting in a 0.7 percentage point increase in load factor to 85.3 percent. That was the highest month's load factor since at least 1990.

“The industry experienced continued strong traffic growth in August, putting the cap on a very good peak travel season,” IATA Director General Alexandre de Juniac said.

“The all-time record load factor reflects that airlines are maximising the efficiency of their assets at a time of rising fuel prices and other costs that are limiting the opportunities for low fare stimulation," he added.

All regions posted respectable gains, with Asia Pacific leading the way with a 9.5 percent increase in demand. Europe came in second on 5.4 percent, and the Middle East third with 5.0 percent. North America returned a 4.6 percent passenger demand increase.

Capacity increases ranged from Asia Pacific’s 7.3 percent to Africa’s 0.6 percent. Europe came in with a 4.6 percent increase and North America with a 4.2 percent boost.

IATA’s de Juniac warned of the importance of UK and EU aviation negotiators achieving a post-Brexit agreement. “It is not just about permission for flights to take off and land. Everything from pilots' licenses to security arrangements, and much more besides, needs to be agreed upon,” he said.

“An assumption that 'it will be all right on the night' reveals little understanding of the complexities involved. Preparations should be made for every contingency, in an environment of far greater transparency than we have seen to date.”