Passenger demand growth hits 5-year peak in January

KUCHING: Global passenger traffic results for January 2017 showing demand in the form of revenue passenger per kilometer (RPKs) rose 9.6 per cent compared to January 2016 -- this was the strongest increase in more than five years.

According to the International Air Transport Association (IATA), results were positively affected by traffic associated with the Lunar New Year celebrations, which occurred in January this year, compared to February in 2016.

IATA estimates the holidayrelated travel contributed up to one-half a percentage point in extra demand growth. January capacity rose eight per cent, and load factor climbed 1.2 percentage points to 80.2 per cent.

“2017 is off to a very strong start, with demand at levels not seen since 2011. This is supported by the upturn in the global economic cycle and a return to a more normal environment after the terrorism and political ‘shock’ events seen in early 2016,” said Alexandre de Juniac, IATA’s Director General and chief executive officer.

January international passenger traffic surged 9.3 per cent compared to the year-ago period. Capacity rose 7.5 per cent and load factor climbed 1.3 percentage point to 80.3 per cent. All regions recorded year-over-year increases in demand led by the Middle East and Asia Pacific.

Asia Pacific carriers recorded an increase of 10.9 per cent compared to January 2016, helped by the impact of Lunar New Year-related travel and solid growth on routes within Asia. Capacity rose 8.9 per cent, pushing up load factor 1.5 percentage points to 81.4 per cent.

European carriers’ international traffic climbed 8.3 per cent in January compared to the year-ago period against a backdrop of moderate momentum in the Eurozone economy. Capacity rose 6.7 per cent and load factor was up 1.2 percentage points to 80.3 per cent.

Middle East carriers had the strongest year-over-year demand growth in January at 14.4 per cent. Capacity climbed 11.4 per cent and load factor rose against the yearago period for a third consecutive month, up 2.1 percentage points to 79.8 per cent.

North American airlines had the slowest demand growth, with traffic rising 3.2 per cent in January, compared to a year ago. Capacity climbed 3.1 per cent, and load factor was flat at 80.3 per cent.

Traffic on the transpacific market has continued to trend upwards but North Atlantic traffic growth has weakened since the middle of 2016, reflecting softer demand on UK-US routes.

Latin American airlines’ traffic climbed 8.2 per cent in January. Capacity rose 5.7 per cent and load factor increased 1.9 percentage points to 83.7 per cent, highest among the regions. Robust international demand within South America is offsetting weaker demand to North America.