Passenger demand growth slows in April – IATA

International Air Transport Association (IATA) has said that global passenger traffic data for April 2016 indicate that demand (measured in total Revenue Passenger Kilometres (RPKs)) rose by 4.6 percent, the slowest since January 2015.

It also stated that April capacity Available Seat Kilometres (ASKs) increased by 4.9 percent and load factor slipped 0.3 percentage points to 79.1 percent

IATA attributed the slow passenger volume in April to the disruptive impact of the Brussels Airport attack, estimating that demand growth would have been around 5 percent if not for the attack.

According to Tony Tyler, director-general, IATA, “The disruptive impacts of the Brussels terror attacks will likely be short-lived. There are some longer-term clouds over the pace of demand growth. The stimulus from lower oil prices appears to be tapering off. And the global economic situation is subdued. Demand is still growing, but we may be shifting down a gear.”

The airlines’ body revealed that April international passenger demand rose 4.8 percent compared with April 2015, the slowest pace in two years.

Airlines in all regions led by the Middle East region, IATA stated recorded growth and that total capacity climbed 5.6 percent, causing load factor to slip 0.6 percentage points to 77.8 percent.

Asia-Pacific airlines’ April traffic, the international airlines’ body said increased by 6.4 percent compared with the year-ago period but that slower economic growth in many of the region’s economies had been at least partly offset by an increase in direct airport connections that had helped to stimulate demand.

Capacity however rose by 6.8 percent and load factor dipped 0.3 percentage points to 77.3 percent.

According to Tyler, European carriers saw demand rise just 1.8 percent in April, which was well down on the 6 percent growth recorded in March, and that this reflects the impact of the Brussels terror attacks, which closed the airport for nearly two weeks.

Capacity, he stated, climbed by 2.4 percent and load factor slipped 0.5 percent percentage points to 80.2 percent, which still was the highest among the regions.

The Middle Eastern carriers, the IATA boss said, posted a 12.7 percent passenger traffic increase in April and the only region to record a double-digit percentage increase in demand, adding that capacity growth of 14.8 percent outstripped this rise, however, which caused load factor to fall 1.4 percentage points to 75.6 percent.

North American airlines’ traffic rose by 1.1 percent compared with April a year ago, the smallest increase among regions while capacity climbed 0.9 percent causing a 0.1 percentage point rise in load factor to 78.3 percent.

 

Ifeoma Okeke