The International Air Transport Association (IATA) announced global passenger traffic results for July showing an acceleration in demand growth over the previous five months. Total revenue passenger kilometers (RPKs) rose 5.9%, compared to the same month last year, with all regions reporting growth. Monthly capacity (available seat kilometers or ASKs) increased by 6.0%, and load factor was 83.7% – just 0.1 percentage point below the record July high achieved in 2015.
“July saw demand strengthen, after a softening in June. Demand was stimulated by lower fares, which, in turn, were supported by lower oil prices. And near record high load factors demonstrate that people want to travel. But, there are some important sub-plots to the narrative of strong demand. Long-haul travel to Europe, for example, suffered in the aftermath of a spate of terrorist attacks. And the mature domestic markets are seeing demand growth stall while Brazil and Russia contract,” said IATA’s Director General and CEO, Alexandre de Juniac.
July international passenger demand rose 7.1 percent compared to July 2015, which was an increase over the 5.0 percent yearly increase in June. Airlines in all regions recorded growth. Total capacity climbed 7.3 percent, causing load factor to slip 0.2 percent percentage points to 83.5 percent.
Domestic travel demand climbed 3.8 percent in July compared to July 2015, its slowest pace in 19 months. China and India are booming while more mature markets are stuck in neutral, and Brazil and Russia are sliding backwards. Domestic capacity climbed 3.7 percent, and load factor rose 0.1 percentage point to 84.0 percent.
