Global passenger traffic up 7.4% in March

There was an improvement in global passenger traffic in March 2015, as results show a 7.4 percent rise compared with March 2014.

The International Air Transport Association (IATA) says this was an improvement on February, when year-over-year growth was 6.4 percent.

“The acceleration in the year-on-year comparison reflects the residual impact of the February Lunar New Year celebrations, which tend to boost leisure travel in the weeks before and after the holiday. In 2014, the holiday occurred at the end of January.

“However, underlying traffic trends confirm demand remains robust. March capacity rose 5.6 percent and load factor climbed 1.3 percentage points to 80.0 percent. Domestic markets experienced stronger growth than international markets, but both performed well.

“March traffic continues the trend of healthy demand for travel. We may, however, see a softening of demand in the second quarter. There are signs that regional trade activity in Asia-Pacific may be slowing and Eurozone economic weakness continues to disappoint,” Tony Tyler, IATA’s director general said

According to him, all regions recorded year-over increases in demand except for Africa.

“African airlines endured another month of declining demand, as traffic dropped 1.1 percent in March compared to a year ago. The weakness reflects adverse economic developments in parts of the continent including Nigeria, Africa’s largest economy, which is suffering from the collapse in oil prices. Accompanying cuts in capacity of 3.2 percent, pushed load factor upwards 1.4 percentage points to 65.7 percent, still the lowest among the regions,” he said.

Tyler explained that Asia-Pacific airlines recorded an 11.1 percent increase in demand compared with March 2014, which is strongest among the regions, saying the timing of the Lunar New Year in mid-February contributed to the robust performance as holiday-related travel continued into early March.

Capacity rose 7.1 percent, boosting load factor 2.9 percentage points to 78.5 percent. The underlying trend in air travel on Asia-Pacific carriers is likely to be weaker than performance suggests as regional trade activity appears to be slowing after strong gains in late 2014.

European carriers’ international traffic climbed 5.4 percent in March compared with the year-ago period. Capacity rose 3.6 percent and load factor climbed 1.4 percentage points to 80.8 percent, which is highest among the regions.

While the Eurozone is reporting very weak economic expansion, outside the Eurozone, nations like Turkey continue to record strong growth, he said.

North American airlines experienced just a 2.7 percent traffic rise in March over a year ago, reflecting the maturity of these travel markets.

The US economy, according to him, continues to lead developed economies in performance. Capacity in the region rose 2.1 percent, edging up load factor 0.5 percentage points to 80.4 percent.

“Middle East carriers demand climbed 9.8 percent in March, but capacity growth of 11.9 percent meant that load factor fell 1.5 percentage points to 77.1 percent compared to March 2014. Middle East economies are comparatively well-placed to withstand the drop in oil prices and measures of non-oil-related business activity continue to show improvement.

“Also, Latin American airlines traffic rose 4.3 percent in March compared to March 2014. Regional trade volumes have been improving, but the Brazilian economy continues to tread water. Capacity rose 5.5 percent and load factor slipped 0.9 percentage points to 77.4 percent,” he said.

 

Sade Williams