IATA: “Good News All Around,” But Economic Risks Mounting
IATA Director General Tony Tyler
says the aviation industry is enjoying “good news all around” with the most
recent traffic results – for November 2015 – revealing strong traffic growth
above the 10 yr. average rate of 5.6%. Total revenue passenger kilometers
(RPKs) rose 5.9% In November compared to November 2014.
The healthy demand continued despite
some softening in economic growth, which IATA attributed in large part to
falling fares. Data for the first 10 months of 2015 showed a 5% decline in
average fares in currency-adjusted terms. November capacity increased by 4.2%
and load factor rose 1.3 percentage points to 78.0%.
In his comments on the results,
Tyler was pleased but cautious: “Consumers continue to benefit from lower
fares, which are spurring demand. The economy benefits from the stimulus to
consumer spending. And airlines are starting to achieve minimum acceptable
profit levels. It’s good news all around, but as we open 2016, economic risks
are mounting,” he said.
American traffic climbed 2.1% in November. While this was weaker than the
year-to-date trend of 3.4%, capacity dipped 0.2%, boosting load factor 1.8
percentage points to 78.4%.
Asia-Pacific saw November traffic climb 7.9% compared to the year-ago period.
Capacity increased 5.7% and load factor rose 1.6 percentage points to 76.2%.
carrierssaw demand increase by 2.2%. IATA says the lower growth
was primarily triggered by the shutdown of Russian carrier Transaero and labour
issues at LH. Capacity slipped 0.1% and load factor rose 1.7 percentage points
to 79.5%, highest among the regions.
East carriersenjoyed a 9.8% demand increase in November. Capacity
rose slightly faster at 11.5% causing load factor to dip 1.0 percentage point
American airlines saw November traffic climb 10.7%., while capacity
increased by 10.1%, pushing load factor up 0.3 percentage points to 78.9%.
Latin American carriers have seen robust growth in air travel, but significant
declines in yields, with weakness in the key economies of Brazil and Argentina
placing significant downward pressure on financial performance.
airlines experienced a 5th consecutive month of positive
traffic growth in November, posting a 12.2% rise compared to November 2014.