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9.5pc INCREASE IN DEMAND

ME carriers record strongest air travel demand growth

GENEVA, April 6, 2017

Middle East carriers posted the strongest international passenger traffic growth across all regions, with a 9.5 per cent demand increase in February compared to a year ago.

According to a figures released by The International Air Transport Association (Iata), capacity rose 7 per cent and load factor climbed for a fourth consecutive month to 74.3 per cent, up 1.8 percentage points over last year.

Other regions had also witnessed a boost in passenger traffic, with African airlines recording a 7.1 per cent increase compared to February 2016, while  European carriers saw February demand increase by 6.5 per cent compared to a year ago. Latin American  airlines followed closely with a 5.9 per cent jump in passenger numbers, with Asia-Pacific carrier trailing with a 5.2 per cent increase. North American airlines witnessed the slowest growth, climbing 0.3 per cent in February.

Overall, February international passenger demand rose 5.8 per cent compared to February 2016, which was down compared to the 9.1 per cent yearly increase recorded in January. Adjusting for the leap year, however, growth actually accelerated slightly compared to January. Total capacity climbed 3.4 per cent, and load factor rose 1.8 percentage points to 78.4 per cent.

Domestic travel demand rose 3.3 per cent in February compared to February 2016, reduced from 8.7 per cent in January, but again, the leap year effect greatly exaggerated the slowdown. Results varied widely as Australia, Brazil and the US all registered non-adjusted declines. Domestic capacity climbed 1.6 per cent, and load factor increased 1.3 percentage points to 81.4 per cent.

Russia has joined India (86.9 per cent) and China (86.1 per cent) among the fastest growing markets (passenger load factor reached 73.9 per cent). Traffic is now back on its trend line prior to the collapse of Transaero in late 2015, supported by steady recovery in the economy and ruble over the past year as oil prices have firmed.

Globally, total revenue passenger kilometers (RPKs) rose 4.8 per cent, compared to the same month last year. Although this was below growth achieved in January, year-to-year comparisons are distorted because February 2016 was a leap month. Adjusting for the one fewer day this year, the underlying growth rate was estimated at 8.6 per cent, just under January’s increase of 8.9 per cent. Monthly capacity (available seat kilometers or ASKs) increased by 2.7 per cent, and load factor rose 1.6 percentage points to 79.5 per cent, which was the highest ever recorded for February.

“The strong demand momentum from January has continued, supported by lower fares and a healthier economic backdrop. Although we remain concerned over the impact of any travel restrictions or closing of borders, we have not seen the attempted US ban on travel from six countries translate into an identifiable traffic trend. Overall travel demand continues to grow at a robust rate,” said Alexandre de Juniac, Iata’s director general and CEO.
 
Iata estimates that allowing for inflation, the price of air travel has fallen by more than 10 per cent in real terms over the past year, accounting for more than half the growth in RPKs in early 2017. - TradeArabia News Service




Tags: demand | travel | growth | Passenger | Carrier | ME | Air |

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