The International Air Transport Association (IATA) has confirmed the continuation of strong growth in air travel demand for both domestic and international traffic in August, with total revenue passenger kilometres up 7.1% compared to the same month a year ago, August capacity plus 5.9% and load factors hitting a record of 84.7% (+0.9 percentage points).

 

“August results continue the trend of strong demand for air travel, despite some softening in global economic growth, particularly in emerging markets,” said Tony Tyler (pictured), IATA’s Director General and CEO.

 

“Airlines are committed to meeting growing demand sustainably. The record high load factor of 84.7% is a great indicator of improved efficiency – a 17 percentage point increase over the industry’s performance a decade ago. This is just one indicator of the aviation industry’s determination to achieve carbon neutral growth from 2020.”

 

August international passenger demand increased by 7.1% compared to the same month last year, with airlines in all regions recording growth, led by Middle East carriers. Total capacity climbed 5.8%, pushing the load factor up 1.0 percentage point to 85.2%.

 

 

Asia-Pacific airlines’ August traffic also rose strongly to 7.7%, with capacity up 5.8% and load factors increasing by 1.5 percentage points to 82.5%. IATA said that while emerging Asia has experienced notable declines in trade activity this year – as well as slower than expected growth in China – neither factor appears to be impacting international air travel on the region’s carriers.

 

Looking at the traffic performance by region, IATA reports that European carriers saw a traffic increase of 5.7% with economic recovery in the Eurozone supporting demand for international travel. Capacity climbed by 4.1% and the load factor by 1.3 percentage points to 88.3% – the highest among all regions.

 

North American airlines’ traffic also by 4.5% year-over-year with capacity up 3.7% and the load factor rising marginally to +0.6 percentage points to 87.2%. IATA adds that expectations for a better economic performance are supporting demand for air travel in the region.

 

Middle East carriers’ August demand was also very strong at 13.7% over the same month in 2014. IAT said: “Major economies in the Middle East, including Saudi Arabia and the United Arab Emirates, have experienced slowdowns in non-oil sectors, but the growth rates remain robust. Capacity nearly kept pace at 13.5% and load factor edged up 0.1 percentage points to 83.7%.”

 

 

There was also a glimmer of recovery with Latin American airlines in terms of business-related international travel, while overall numbers experienced a 6.7% rise in traffic compared to August a year ago. Capacity exceeded demand at 7.1% and the load factor slipped 0.3 percentage points to 82.0%.

 

IATA says that Latin America was the only region to see a decline in load factors, although despite ‘recessionary conditions in Brazil and Argentina’, improving regional trade volumes provided a boost to business-related international travel.

 

By contrast, African airlines’ traffic rose 3.6% in August year-to-year, which was the slowest growth among the regions, but the second consecutive month of growth. Capacity increased by 2.9%, with the result that the load factor improved marginally by 0.5 percentage points to 75.2%.

 

 

‘Adverse economic developments in parts of the continent’, including Nigeria (the largest economy), suggest that Africa will continue to experience ‘weak growth at best’, according to IATA.

 

As for domestic air travel, demand rose by 7.1% in August compared to the same month in 2014, with double-digit growth recorded in India, China and Russia, while both Brazil and Japan saw declines compared to August last year. Domestic capacity was up 6.1%, and the load factor improved by 0.8 percentage points to 83.8%.

 

A major highlight was that India’s domestic demand surged by 18.3% in August compared to a year ago, largely reflecting increases in service frequencies and economic strength. At the same time, domestic traffic in Japan slipped by 2.1% year-to-year. Although the economy remains fragile, IATA says it expects that a weak yen will support domestic demand over international trips.

 

 

Commenting on the results, IATA’s Tyler said: “Although the global economic outlook is decidedly mixed, demand for aviation connectivity remains strong. We are seeing the benefits of that connectivity play out at the Rugby World Cup taking place in England.

 

“Over 450,000 international fans are expected to attend the six-week pinnacle event of the sport. Ernst and Young estimate that they will directly spend £870m ($1.3bn) and add £2.2bn ($3.3bn) to the UK economy. Aviation is helping to make this enormous infusion of spending possible. One can only speculate how much more value would be created for the UK’s economy, were it not for the punitive UK Air Passenger Duty.”