GENEVA — The world’s airlines saw a slight pick up in demand in August with passenger traffic increasing 5.9% compared to August 2013, according to (IATA).
This is an increase over the 5.4% year-over-year increase recorded in July. August capacity climbed 5.5%. The load factor stood at 83.9% which is a 0.3 percentage point rise over August 2013.
“August was a good month right across the industry. All regions reported an expansion in demand for air travel. And load factors were high, reflecting the fact that August is peak travel season in the Northern hemisphere. We should, however, keep an eye on potential downside risks. European travel, for example, continues to show robust growth. The 6.1% year-to-date expansion in demand reflects a solid step up from the 3.8% growth recorded in 2013. But it remains a question how long the robust trend in passenger travel can continue in light of the continent’s increasingly worrying economic outlook,” said Tony Tyler, IATA’s Director General and CEO.
North American airlines’ demand rose 3.2% in August compared to a year ago. According to JP Morgan/Markit, overall business conditions in the U.S. are the strongest they have been since May 2010. With capacity up 5.0%, load factor fell 1.5 percentage points to 86.6%.