IATA reports resurgence of passenger demand in Feb.

Global passenger traffic rebounded this February after the temporary slowdown earlier due to temporary factors, including the later timing of the Lunar New Year, latest data from the International Air Transport Association (IATA) showed.

“As expected, we saw a return to stronger demand supported by the robust economic backdrop and solid business confidence,” confirmed IATA’s Director General and CEO Alexandre de Juniac. “However, increases in fuel prices and labor costs in some countries will likely temper the amount of traffic stimulation from lower airfares this year.”

Total revenue passenger kilometers (RPKs) for the month rose 7.6%, versus the same period last year, up from 4.6% year-over-year growth in January. Monthly capacity (available seat kilometers or ASKs) increased 6.3%, and load factor rose 0.9 percentage point to 80.4%, surpassing the previous record for the month of 79.5%, set in February 2017.

February international passenger demand rose 7.2% compared to February 2017, which was up from the 4.2% increase recorded in January. Led by airlines in Latin America, all regions recorded better year-on-year growth compared to January’s results. Total capacity climbed 5.9%, and load factor rose 1.0 percentage point to 79.3%.

Asia-Pacific airlines’ February traffic rose 9.1% compared to the year-ago period. Demand is being supported by healthy regional economic growth and expansion in the number of routes on offer. Capacity increased 8.4% and load factor climbed 0.6 percentage point to 80.5%.

Middle East carriers recorded a 3.4% demand increase in February compared to a year ago. Capacity rose 3.9% and load factor slipped 0.3 percentage point to 74.1%. Carriers in the region faced significant headwinds over the past year including the temporary ban on large portable electronic devices as well as the proposed travel bans to the US from some countries in the region.

India’s domestic traffic rose 22.9%, the 42nd consecutive month of doubledigit year-on-year demand growth, and load factor exceeded 90% for the first time on record. Passenger demand continues to be stimulated by network growth that translates into time savings for air travelers. Australian domestic traffic rose 3.9% compared to the year-ago period, which was a 17-month high.

Overall, “We see the same positive picture of growth in demand for aviation connectivity. Aviation is the business of freedom, enabling people to lead better lives,” according to De Juniac.” Aviation has helped to lift millions from poverty, but for aviation to deliver even greater benefits in future, adequate, affordable infrastructure is a must.”

North American airlines’ traffic climbed 7.2% in February, supported by the relatively vigorous US economic backdrop, while the weaker dollar appears to be offsetting some of the negative impacts on inbound travel. Capacity rose 4.6% and load factor was up 1.9 percentage points to 78.0%.

Latin American airlines posted the fastest year-on-year growth for a second consecutive month as February traffic jumped 9.8% compared to February, 2017, up from 8.1% growth in January. Demand continues to recover from the impacts of the severe 2017 hurricane season. Capacity increased by 8.9%, and load factor rose 0.6 percentage point to 81.5%.