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IATA: Moderate pick-up in passenger demand in August

Last update: 10/10/2019
KUALA LUMPUR, Oct 10 -- Global passenger traffic data for August 2019 showed that demand, which is measured in total revenue passenger kilometres (RPKs), climbed 3.8 per cent compared with the year-ago period, the International Air Transport Association (IATA) said today.

This was above the 3.5 per cent annual increase for July. Load factor climbed 0.3 per cent percentage point to 85.7 per cent, which was a new monthly record, as airlines continue to maximise asset use.

“While we saw a pick-up in passenger demand in August compared to July, growth remains below the long-term trend and well-down the roughly 8.5 per cent annual growth seen over 2016 to the first quarter of 2018 period,” IATA director general and chief executive officer, Alexandre de Juniac said.

He said it reflected the impact of economic slowdown in some key markets, uncertainty over Brexit and the trade war between the US and China.

“Nonetheless, airlines are doing a great job of matching capacity to demand. With passenger load factors reaching a new high of 85.7 per cent, this is good for overall efficiency and passengers’ individual carbon footprint,” he said.

August international passenger demand rose 3.3 per cent compared to August 2018, up from a 2.8 per cent year-over-year growth achieved in July.

With the exception of Latin America, all regions recorded increases, led by airlines in Africa. Capacity climbed 2.9 per cent and load factor edged up 0.3 percentage point to 85.6 per cent, said IATA, which represents some 290 airlines comprising 82 per cent of global air traffic.

Asia-Pacific airlines’ August traffic increased 3.5 per cent compared with the year-ago period, which was an acceleration compared to a 2.6 per cent rise in July.

However, this remains well below the long-term average growth rate of around 6.5 per cent, reflecting slowing economic growth in India and Australia as well as the impact of trade disputes.

Capacity rose 3.9 per cent and load factor slid 0.4 percentage point to 82.8 per cent, it said.

Meanwhile, demand for domestic travel climbed 4.7 per cent in August 2019 compared to August 2018, unchanged from the previous month. Capacity rose 4.6 per cent and load factor increased 0.1 percentage point to 85.9 per cent, it added.

-- BERNAMA






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