Domestic travel demand rose 7.8% in September compared to September 2014. All markets except Brazil showed growth with the strongest increases occurring in India, China and Russia. Domestic capacity climbed 6.1%, and load factor improved 1.3 percentage points to 81.0%.
Sep 2015 vs Sep 2014 RPK Growth ASK Growth PLF
Australia 0.3% 0.0% 77.1%
Brazil -1.3% -1.8% 79.1%
China P.R 12.5% 10.5% 81.2%
India 13.2% 12.6% 81.9%
Japan 2.0% -1.4% 71.6%
Russian Federation 12.1% 13.0% 77.8%
US 6.9% 4.6% 84.2%
Domestic 7.8% 6.1% 81.0%
Brazil’s domestic demand slipped 1.3% in September compared to September 2014 as the economy slid further into recession with rising unemployment, and the Brazilian Real continued to decline against the dollar.
The Bottom Line : “Aviation’s connectivity is vital to the health and well-being of the global economy. And financial strength is critical to the industry delivering its best. While the overall outlook is for a collective profit that covers the industry’s cost of capital, parts of the industry are really struggling. The poor economic performance in Brazil is having a dramatic negative impact on the industry’s performance in Latin America’s largest market. There are a number of swift policy options that the government could take to stimulate the sector by reducing the burden of onerous taxes, punitive regulation and a crippling fuel pricing regime. A comprehensive policy response would unleash the power of aviation connectivity and pay big dividends across the economy.
