August demand was strong, says IATA, but growth may be slowing down

August demand was strong, says IATA, but growth may be slowing down

GENEVA — Global passenger traffic numbers in August were both good and bad, says IATA, with demand climbing 7.2% compared to the year-ago period, but seasonally-adjusted traffic easing somewhat from the end of 2016.

August capacity increased by 6.3%, and load factor climbed 0.7% percentage points to 84.5%, which was just below the record for the month set in 2015.

“Following the strong summer traffic season in the Northern hemisphere, 2017 is on course to be another year of strong traffic growth. However, some important demand drivers are easing, particularly lower fares. As we head towards the end of the year we still expect growth to continue, but potentially at a slower pace,” said Alexandre de Juniac, IATA’s Director General and CEO.

August international passenger demand rose 7.0% compared to August 2016. All regions recorded increases, led by airlines in Latin America. Capacity climbed 6.1%, and load factor edged up 0.8 percentage points to 84.5%.

North American airlines’ international demand rose 5.5% compared to August a year ago, up from 4% growth recorded in July and nearly double the five-year average of 3.1%. However, there are signs that inbound travel to the U.S. is being negatively impacted by the additional security measures now involved with travelling there. Capacity rose 3.9%, and load factor grew by 1.4 percentage points to 86.6%.

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