IATA reports solid but moderating passenger demand in November

The International Air Transport Association (IATA) announced healthy but moderating global passenger traffic results for November 2018, with total revenue passenger kilometers (RPKs) up by 6.2% compared to November 2017. This was a slight deceleration from 6.3% growth in October.

Load factor dipped 0.4 percentage point to 80.0%. It was only the third time in two years that load factor fell on a year-to-year basis.

“Traffic is solid. But there are clear signs that growth is moderating in line with the slowing global economy. We still expect 6% demand growth this year. But trade tensions, protective tariffs and Brexit are all uncertainties that overhang the industry,” said Alexandre de Juniac, IATA’s Director General and CEO.

 

International Passenger Markets
November international passenger demand rose 6.6% compared to November 2017, up from 6.2% in October. All regions showed growth, led by carriers in Europe, which saw demand increase to a nine-month high of 9.0%

     North American airlines’ traffic climbed 6.1%, in November, up from 5.7% in October and well ahead of the five-year average rate of 4.0%.

     Latin American airlines’ November traffic climbed 5.8% compared to November 2017, which was an increase from 5.2% growth recorded in October. Despite the increase, growth has slowed on a seasonally-adjusted basis.

     Asia-Pacific airlines’ November traffic climbed 6.0%, up from 5.7% growth in October.

     Middle East carriers had a 2.8% demand increase, which was the lowest among the regions for a third consecutive month. African airlines experienced a 5.7% rise in demand compared to November 2017, down from 6.4% in October but higher than the five-year average of 5.8%.

Domestic travel demand rose 5.6% in November compared to the same month in 2017, its slowest pace in 11 months and down from 6.5% in October. All markets except Australia showed growth. India and the Russian Federation led with 13.3% growth and 13.8% growth respectively.

Brazil’s domestic traffic rose to a four-month high of 5.3% in November, against a fragile economic backdrop, said IATA.

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