Middle East airlines achieve strongest growth in air passenger traffic

Muscat: Middle East airlines have achieved the strongest growth in passenger traffic, with a 9.5 per cent demand increase in February compared to a year ago. Capacity rose 7 per cent and load factor climbed for a fourth consecutive month to 74.3 per cent, up 1.8 percentage points over last year, according to the International Air Transport Association (IATA).
Asia-Pacific airlines’ February traffic rose 5.2 per cent compared to the year-ago period, maintaining the strong momentum of the past few months. Intra-Asia traffic remains robust and conditions on the Asia-Europe route have continued to recover from last year’s terrorism-related slowdown. Capacity increased by 2.9 per cent and load factor climbed 1.7 percentage points to 79.8 per cent.
The IATA announced global passenger traffic results for February showing a second month of strong demand growth to begin 2017.
Total revenue passenger kilometers (RPKs) rose 4.8 per cent, compared to the same month last year. Although this was below growth achieved in January, year-to-year comparisons are distorted because February 2016 was a leap month. Adjusting for the one fewer day this year, the underlying growth rate was estimated at 8.6 per cent, just under January’s increase of 8.9 per cent. Monthly capacity (available seat kilometers or ASKs) increased by 2.7 per cent, and load factor rose 1.6 percentage points to 79.5 per cent, which was the highest ever recorded for February.
“The strong demand momentum from January has continued, supported by lower fares and a healthier economic backdrop. Although we remain concerned over the impact of any travel restrictions or closing of borders, we have not seen the attempted US ban on travel from six countries translate into an identifiable traffic trend. Overall travel demand continues to grow at a robust rate,” said Alexandre de Juniac, IATA’s Director General and chief executive officer.
IATA estimates that allowing for inflation, the price of air travel has fallen by more than 10 per cent in real terms over the past year, accounting for more than half the growth in RPKs in early 2017.
International travel demand
In February, international passenger demand rose 5.8 per cent compared to February 2016, which was down compared to the 9.1 per cent yearly increase recorded in January. Adjusting for the leap year, however, growth actually accelerated slightly compared to January. Total capacity climbed 3.4 per cent, and load factor rose 1.8 percentage points to 78.4 per cent.
European carriers saw February demand increase by 6.5 per cent compared to a year ago. Traffic has resumed its growth after the terrorist disruptions in 2016, supported in part by momentum in the regional economy. Capacity climbed 3.4 per cent and load factor surged 2.4 percentage points to 81.1 per cent.
North American airlines’ traffic climbed 0.3 per cent, which was the slowest among the regions. However, adjusting for the leap year, growth was estimated at 3.4 per cent. Traffic to/from Asia continues to move upward but transatlantic demand has trended sideways since mid-2016. Capacity inched up 0.1 per cent and load factor edged up 0.1 percentage point to 75.9 per cent.