Middle East carriers posted a 10.3 per cent increase in passenger demand in October, a report said, adding that while capacity rose 12.7 per cent, it caused load factor to slide 1.5 percentage points to 72.5 per cent.

The Middle East was the only region to see a decline in load factor for the month, added the global passenger traffic results for October announced by the International Air Transport Association (Iata).

African airlines’ traffic climbed 6.7 per cent in October, marking a fourth consecutive month of improvement compared to the year-ago period. However, fundamental economic drivers remain weak, so the result could also reflect volatility in reported volumes. Capacity rose 5.2 per cent; with the result that load factor improved 1.0 percentage point to 67.4 per cent.

October international passenger demand rose 7.6 per cent compared to October 2014, with airlines in all regions recording growth. Total capacity climbed 6.1 per cent, pushing up load factor 1.1 percentage points to 79.2 per cent.

Total revenue passenger kilometres (RPKs) rose 7.5 per cent, which was in line with the 7.4 per cent year-over-year expansion seen in September. October capacity (available seat kilometres or ASKs) increased by 5.7 per cent, and load factor rose 1.4 percentage points to 80.5 per cent. Growth in air travel has been stimulated by lower fares, particularly for leisure travel.

Data for the first 8 months of the year show a 5 per cent fall in average fares in currency-adjusted terms. It is estimated that the fall in fares has supported approximately 3 percentage points of the rise in traffic year-to-date.

“The air travel story is generally a good one. There are some weak spots. For example the Brazilian air transport sector is caught in perfect storm of a deepening recession, high costs and a weak currency. In most parts of the world we see strong demand for travel—exceeding the growth in capacity. Load factors are averaging over 80 per cent and consumers are the big winners with fares trending downwards,” said Tony Tyler, Iata’s director general and CEO.   

International Passenger Markets

Asia-Pacific airlines’ October traffic increased 8.6 per cent compared to the year-ago period. European carriers saw demand rise 6.7 per cent, supported by economic recovery in the Eurozone, while North American airlines’ traffic rose 4.6 per cent compared to October a year ago, continuing the healthy trend of recent months.

Latin American airlines experienced a 10 per cent rise in October demand compared to the same month last year.

Domestic passenger markets

Demand for domestic travel climbed 7.3 per cent in October compared to October 2014. There was a wide disparity in results, with Brazil and Australia both showing declines while China, India and Russia posted double-digit increases. Domestic capacity climbed 5.0 per cent, and load factor improved 1.8 percentage points to 82.7 per cent.

US airlines reported a second month of strong demand with RPKs up 6.9 per cent year-over-year. Part of the expansion in domestic air travel is related to an acceleration in capacity additions.

Brazil’s domestic traffic fell 6 per cent compared to the year-ago period as airlines struggle under the burdens of a deepening recession, sinking local currency and government policies that impose crushing costs on the industry.

“The end of the year is a festive time around the world. But this year’s celebrations will be juxtaposed against the somber reality of recent terrorist activity in the Middle East and Europe. This, by all indications, also includes the downing of Metrojet 9268 with the loss of all aboard,” said Tyler.

“Acts of terror, whether they occur on a city street or at 30,000 feet, will not get the better of us, or succeed in limiting the possibilities of our world. The most important response to acts and threats of terrorism is to show that we will not let the terrorists change our lives.

“That extends to aviation and tourism. Over 100,000 flights will bring a million people together today because of the efforts of 8.7 million people—aviation professionals. These efforts will create opportunities for business and leisure and for greater understanding among people and cultures. By doing so, flying is a force for good in our world. As we look to 2016 and beyond it’s a reality that should continue to inspire us all,” Tyler concluded. – TradeArabia News Service