GENEVA — Global passenger traffic results for June show that demand is up, says IATA, with the first six months of 2018 having a “strong performance”.
Demand (measured in total revenue passenger kilometres, or RPKs) in June rose by 7.8% compared to June 2017, following a 6.0% year-over-year growth recorded in both May and April. June capacity (available seat kilometres or ASKs) increased by 6.5%, while load factor rose 1.0 percentage point to 82.8%.
The first half of 2018 produced demand growth of 7.0%, a strong performance says IATA, but still down from the 8.3% growth recorded in the first half of 2017.
“The first half of 2018 concluded with another month of above-trend demand growth, which is a good indicator for the peak summer travel season in the northern hemisphere. But the looming prospect of a global trade *** is casting a long shadow. Additionally, rising cost inputs – fuel prices have soared by approximately 60% over the past year—are reducing the stimulus of lower fares,” said Alexandre de Juniac, IATA’s Director General and CEO.
All regions recorded growth in June, led by airlines in the *********** and Africa. North American airlines’ demand rose 5.9% compared to June a year ago, an improvement from 5.0% growth recorded in May, while capacity climbed 3.6% and load factor increased 1.9 percentage points to 86.7%.
Increasing momentum in the U.S. economy is supporting growth in passenger volumes, but prospects of further escalation in trade disputes could affect future demand.