Airfares level off, leading to slow-down in global air traffic growth: IATA

Airfares level off, leading to slow-down in global air traffic growth: IATA

GENEVA — Global passenger traffic was up 5.8% in October 2016 compared to the same month last year, according to the latest IATA results. Capacity increased 6.3% and load factor slid 0.4 percentage points to 80.1%.

October’s performance was a slow-down on the 7.1% year-on-year growth rate recorded in September but still was in line with 10-year averages, noted IATA. Domestic and international travel growth largely was in balance.

“Passenger demand growth in October was consistent with long-term trends but represented a deterioration compared to September,” said Alexandre de Juniac, IATA’s Director General and CEO. “While the negative traffic impact from terror attacks and political instability in parts of the world has receded, the long downward trend in yield – which helped to stimulate travel – has levelled off. Furthermore, the recent OPEC agreement to restrict oil production suggests fuel prices have ended their slide.”

Airlines in all regions recorded growth. North American airline traffic climbed 2.4% in October compared to the year-ago period. This was the lowest among the regions, however on a seasonally-adjusted basis passenger volumes have still risen at an annualized rate of around 5% since March. Capacity rose 4.9% and load factor dropped 1.9 percentage points to 80.1%.