IATA sees decreasing fares contributing to global passenger traffic

Travel News 01 Jan 2016

Global air passenger traffic grew 5.9% year-over-year in November, slowing from October’s 7.1% growth, according to IATA’s Air Passenger Market Analysis.

IATA commented that the 5.9% growth is considered ‘healthy’ and that last November’s result is above the average 10-year average growth rate of 5.6%. IATA reasoned that labour strikes at Lufthansa and the shutdown of Russia’s Transaero, the country’s second-largest airline in terms of RPKs, as temporary factors that drove down demand during the month.

Falling airfares are largely behind the current good health of the air passenger market, IATA said, citing data for the first ten months of 2015 indicating a 5% decline in average fares.

Combined world traffic on domestic routes grew 6.4% YOY, down 0.9 point from October. Capacity on the world’s domestic routes increased 4.4% YOY; the total passenger load factor for domestic travel was 81.1%. Domestic travel in India was up 25.1% YOY; China’s domestic travel also had a strong month, with RPKs rising 8.4% YOY. US domestic travel was up 9.1% in November, the third month of strong results. Reflecting the closure of Transaero, Russia’s domestic traffic fell 7.1% YOY in November.

International passenger traffic globally was up 5.6% YOY in November, falling 2 points from October. Yet international travel on Latin American carriers surged, rising 10.7% YOY, part of a robust growth in air travel the region has seen year-to-date, IATA said.

Significantly, traffic in the Asia-Pacific region was up 7.9% YOY during the month, also continuing a rebound in the region during the past few months