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Air travel continues to grow as fares fall
Air passenger traffic continued to grow above the 10-year average last November, although the growth rate was slower than in October due to short-lived events including a strike at Lufthansa and the cessation of Russian carrier Transaero.
Figures show that total revenue passenger kilometres were up 5.9% over the previous November, compared with a rise of 7.1% in October.
IATA said demand continued to grow despite some softening in economic growth, in large part owing to falling fares.
Data for the first 10 months of the year showed a 5% drop in average fares.
"Consumers continue to benefit from lower fares, which are spurring demand. The economy benefits from the stimulus to consumer spending. And airlines are starting to achieve minimum acceptable profit levels. It’s good news all around, but as we open 2016, economic risks are mounting," said IATA director general Tony Tyler.
In Europe, demand was up by 2.2% and load factors were up 1.7 percentage points to 79.5%, higher than anywhere else in the world.
In the Middle East, Latin America and Africa demand was up around 10%, but this was almost matched or exceeded by increases in capacity.
In North America, traffic rose 2.1% while there was a slight drop in capacity, boosting the load factor to 78.4%.
Tyler said airlines were ‘on the path toward financial sustainability’ and that while consumers are benefiting from lower fares, airlines are able to invest in newer more comfortable and quieter environmentally friendly aircraft.
"Passenger demand remains strong; however, the ongoing turmoil in the global financial markets and concerns over slowing economic growth in China are casting a shadow over the New Year," he added.
"2016 will be a historic year for aviation as States come together at the 39th International Civil Aviation Organization Assembly to discuss—and I hope agree—a market-based-measure that will allow airlines to achieve carbon-neutral growth from 2020."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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