IATA: Passenger demand remain solid but the trend has slowed down

Α Decrease font Enlarge font
IATA: Passenger demand remain solid but the trend has slowed downDemand (measured in revenue passenger kilometers, or RPKs) rose 4.5% compared to the same month in 2018

(Geneva) - The International Air Transport Association (IATA) announced global passenger traffic results for May showing that demand (measured in revenue passenger kilometers, or RPKs) rose 4.5% compared to the same month in 2018. This was in line with the revised April traffic growth of 4.4% and above the recent trough of 3.1% year-on-year growth recorded in March. However, it remains below the 20-year average growth rate of around 5.5%. Capacity (available seat kilometers or ASKs) climbed by a modest 2.7% and load factor rose 1.4 percentage points to 81.5%, surpassing last year’s record load factor of 80.1%. 

“Passenger demand growth has slowed compared to the past two years. This is in line with slumping global trade, rising trade tensions and weakening business confidence. In this challenging environment, airlines are managing capacity carefully in order to optimize efficiency,” said Alexandre de Juniac, IATA’s Director General and CEO. 

MAY 2019 (% YEAR-ON-YEAR)WORLD SHARE1RPKASKPLF (%-PT)2PLF (LEVEL)3
Total Market 100.0% 4.5% 2.7% 1.4% 81.5%
Africa 2.1% 2.2% 0.3% 1.2% 67.6%
Asia Pacific 34.4% 4.5% 3.5% 0.8% 80.2%
Europe 26.7% 5.4% 4.6% 0.6% 83.7%
Latin America 5.1% 6.5% 2.8% 2.9% 83.2%
Middle East 9.2% 0.7% -5.9% 4.8% 73.2%
North America 22.5% 4.5% 3.2% 1.1% 85.1%

 

1-% of Industry RPKs in 2018                2-Year-on-year chnage in load factor                 3-Load factor level 

International Passenger Markets

International traffic demand rose 4.3% in May over the year-ago period, which was down from 5.1% growth in April. All regions recorded growth, led by airlines in Latin America. Total capacity climbed 2.1%, with load factor jumping 1.7 percentage points to 80.4%.

  •  European carriers' May demand climbed 5.4% over May 2018, a deterioration from the 7.7% year-over-year growth recorded in April. Capacity rose 4.6% and load factor was up 0.7 percentage point to 84.2%, which was the highest among regions. Most of the region's growth, however, occurred in the first half of 2018, with demand moving broadly sideways since then.
  •  Asia-Pacific airlines saw their traffic rise 4.0% in May compared to the year-ago period, an improvement over the 2.9% increase in April. Capacity increased 3.0%, and load factor edged up 0.8 percentage point to 78.6%. This is the second consecutive monthly increase in demand, but it still represents a soft outcome in a region that regularly saw double-digit growth rates over the past few years. The US-China trade tensions continue to weigh upon growth in the region. 
  •  Middle East carriers' May demand growth decelerated to 0.8% compared to a year ago, from 3.3% annual growth recorded in April. This partly reflects the impact of the structural changes that are underway in the industry in the region. May capacity plunged 6.1%, and load factor soared 5 percentage points to 73.0%.
  •  North American airlines' traffic rose 4.8% in May compared to May 2018, a slowdown from 5.6% annual growth in April. Capacity climbed 2.7% and load factor strengthened 1.7 percentage points to 83.6%. The comparatively strong US domestic economy, and US dollar is helping to offset any trade-related softening in international travel.
  •  Latin American airlines experienced a strong 6.7% increase in traffic in May compared to the same month last year, which was well up from 5.1% growth in April. Passenger demand is currently holding up well, despite a challenging economic backdrop in a number of countries. Capacity climbed 4.0% and load factor jumped 2.1 percentage points to 84.0%, second highest among the regions.
  •  African airlines posted a 2.1% traffic rise in May compared to the year-ago period, which was up from just 1.1% growth in April. Capacity climbed 0.1% and load factor increased 1.3 percentage points to 67.0%. Traffic between Africa and Europe continues to expand strongly, but economic growth in South Africa – a key regional economy and air transport market– contracted sharply in the first quarter and this is adversely impacting air passenger demand.  

Domestic Passenger Markets

APRIL 2019 (% YEAR-ON-YEAR)WORLD SHARE1RPKASKPLF (%-PT)2PLF (LEVEL)3
Domestic 36.0% 4.8% 3.8% 0.8% 83.4%
Dom. Australia 0.9% 1.1% 0.8 0.2% 77.0%
Domestic Brazil 1.1% 1.3% -4.4% 4.6% 81.4%
Dom. China P.R. 9.5% 7.6% 7.1% 0.4% 83.2%
Domestic India 1.6% 6.0% 3.3% 2.3% 90.1%
Domestic Japan 1.0% 6.6% 2.0% 3.1% 71.6%
Dom. Russian Fed. 1.4% 10.6% 9.6% 0.7% 80.1%
Domestic US 14.1% 4.6% 3.9% 0.6% 86.0%

1-% of Industry RPKs in 2018                2-Year-on-year change in load factor                 3-Load factor level 

Domestic traffic increased 4.8% in May compared to May 2018, well above the 3% year-over-year rise recorded in April. Russia was the only market to see double-digit demand growth. Domestic capacity rose 3.8% and load factor climbed 0.8 percentage point to 83.4%.

  •  Russia's domestic traffic rose 10.6% year-over-year, which is up slightly from the 10.4% year-over-year growth recorded for April. Russia continues to benefit from favorable economic conditions and lower airfares.
  •  Japan's domestic traffic rose 6.6% in May, up from 4.1% growth in April and the strongest performance since summer 2017. Fare stimulation, combined with robust economic growth, contributed to the result.

The bottom line

"Aviation is the business of freedom, connecting people and trade and creating new opportunities for growth and development. But to be effective, the business of freedom relies on borders that are open to the movement of people and goods—and aircraft. In recent weeks, we have seen extensive airspace closures owing to political tensions. These closures have contributed to longer and less efficient routings, higher operating costs and increased carbon emissions. Without any compromise on safety, it is vital that governments work to minimize airspace closures so that the Business of Freedom can continue to deliver its benefits as efficiently as possible," said de Juniac.

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinationsGreek travel marketGreek tourism statisticsGreek tourism report

Photo Source: pixabay.com

Tornos
  1. 16/08 23:23

    Full moon events at archaeological sites to conclude in Greece Sunday

  2. 16/08 23:12

    Greek Ministers to meet on Monday on Samothrace island transportation issue

  3. 16/08 21:47

    Greece records impresssive primary surplus of €1.779 billion in Jan-July

  4. 16/08 21:28

    Greek hospital worker fined 100 euros for violating smoking ban

  5. 16/08 20:59

    Cyclades International Classical Music Festival on Greek island of Syros

  6. 16/08 16:38

    Full moon shining bright over Koroni castle in southern Greece

  7. 16/08 12:40

    No active firefronts on Evia island but authorities still on alert

  8. 15/08 23:04

    Greek Prime Minister attends August 15 liturgy in island of Tinos

  9. 15/08 19:53

    Dormition of Virgin Mary celebrated across Greece on August 15th

  10. 14/08 17:00

    Greek flight safety expert to win sector's top international distinction

  11. 14/08 16:14

    Urgent measures to reduce flight delays at airports in Greece during peak season

  12. 14/08 15:22

    Passenger traffic in Greek airports soars 4.7% during first seven months of 2019

  13. 14/08 13:29

    Two ferries to arrive at Greek island of Samothrace on Wednesday

  14. 14/08 11:07

    Strong winds to temporarily subside in Greece

  15. 13/08 22:01

    AP: Kevin Spacey offers poetic tribute to Greek statue at Rome Museum (video)

  16. 13/08 21:56

    Greek Culture Minister meets with Chinese Ambassador to Athens Zhang Qiyue

  17. 13/08 21:56

    Two Greek beaches among world's top-50

  18. 13/08 17:24

    Media report: Secret ‘rooftop beach’ opens in the heart of Athens

  19. 13/08 13:13

    Visitors and revenues of Greek museums and ancient sites rise in April 2019

  20. 13/08 11:31

    Wildfire raging on Evia creates smoke cloud visible from Attica

  21. 13/08 09:42

    Schinias and Marathonas beaches out of bounds in Attica on Tuesday

  22. 12/08 19:28

    US Ambassador welcomes NBA MVP Giannis Antetokounmpo in Athens

  23. 12/08 18:52

    Mayor: Elafonissos island in Greece is a safe tourist destination

  24. 12/08 18:42

    Full moon events at archaeological sites in Greece to conclude Sunday

  25. 12/08 17:59

    Unique intact Hellenistic tomb found in Kozani of northern Greece

  26. 12/08 17:34

    Minister Theocharis: New strategic plan for the development of Greek tourism

  27. 12/08 14:24

    Wildfire on Mount Hymettus of Attica Region under total control

  28. 11/08 22:18

    Perseid meteor shower to peak on Greek sky on Monday

  29. 11/08 22:13

    Greek Prime Minsiter calls for shipowners to register their fleets locally

  30. 11/08 22:06

    Temperatures up to 40C to continue across Greece on Monday

  31. 11/08 22:01

    Building permits in Cyprus record big annual rise during first five months

  32. 11/08 21:47

    Greek island of Santorini becomes a global destination for parkour (videos)

  33. 11/08 21:29

    "Snakes of Virgin Mary" appear again in Greek island of Kefalonia (video)

  34. 10/08 18:32

    Media report: Roofless room in Greek island of Crete available on Airbnb

  35. 10/08 17:52

    First traditional Greek ‘Kafeneion’ opens up in the heart of Paris

  36. 09/08 21:03

    Fifth annual Molyvos International Music Festival opens in Lesvos

  37. 09/08 18:21

    Interest grows for 'last chance' debt settlement scheme in Greece

  38. 09/08 18:15

    French Finance Minister Le Maire meets with Greek officials in Athens

  39. 09/08 17:58

    Global Health Tourism figures honored in Ithaca, the island of Odysseus in Greece

  40. 09/08 17:53

    Ecumenical Patriarch Bartholomew wins 2019 ECOS Environmental Award (video)

  41. 09/08 17:48

    New PM reaffirms commitment Eldorado Gold's investment in Greece to proceed

  42. 09/08 17:41

    Window on Greek olive oil world marks 3rd anniversary

  43. 09/08 17:26

    Greek Minister visits beach for persons with disabilities in Voula suburb of Athens

  44. 09/08 16:43

    Greek Minister: Decisions unlocking Elliniko development project within August

  45. 09/08 16:36

    Turkish Rixos Hotels to operate all-inclusive resort on Red Sea Riviera

  46. 09/08 16:32

    Greek government abolishes 'written justification' clause by employers for firings

  47. 09/08 14:53

    Popular Chinese Travel Show films on Greek Islands of Santorini and Kefalonia

  48. 09/08 14:12

    Renowned Greek sculptor Takis passes at the age of 94

  49. 09/08 12:48

    Exquisite Classical Era grave steles discoverd at cemetery on Greek island of Tinos

  50. 09/08 10:16

    Athens city opens eight airconditioned spaces on Saturday due to heatwave

  51. 08/08 21:35

    Greek Health Minister meets British ambassador to Athens Kate Smith

  52. 08/08 20:49

    Law on return of critical executive powers to mayors passed by Greek Parliament

  53. 08/08 19:31

    Cyprus Antiquities Department on collapse of Venetian Walls in Nicosia

  54. 08/08 18:23

    British travel series comedy ‘The Trip’ comes to Greece

  55. 08/08 18:01

    Parliament Budget Office: Improvement in liquidity for Greece's four systemic banks

  56. 08/08 17:57

    ”Taste of the Danforth” Street Festival in Toronto’s Greektown on August 9-11 (video)

  57. 08/08 17:23

    Athens municipality and government discuss major upgrades in Greek capital

  58. 08/08 17:14

    1st Energy Ministerial Meeting in Athens promotes environmental co-operation

  59. 08/08 13:58

    Concession agreement for marina on Greek island of Chios signed

  60. 08/08 12:49

    Greek shipping expands dominance in European Union and the world

  61. 08/08 10:17

    New 6th century BC finds by excavation works on Despotiko island in Greece

  62. 08/08 00:49

    New York City Greek Film Festival to take place between October 17-23

  63. 07/08 22:42

    Report: How Airbnb fared against top hotel chains, Marriott, Hilton and Intercontinental

  64. 07/08 22:39

    New York Euripides Summer Festival presents "Iphigenia among the Taurians"

  65. 07/08 22:16

    Enaleia: First Professional Fishing School in Greece supported by THI grant

  66. 07/08 22:05

    The Ethnological Museum of Cyprus will be closed due to conservation works

  67. 07/08 21:21

    Tom Hanks finds 'perfect car' during August vacation in Greece

  68. 07/08 18:43

    Greece moving to end long airport delays at popular tourism spots

  69. 07/08 18:16

    IATA: Air freight drops for eighth consecutive month

  70. 07/08 15:17

    Greece ranks 26th globally in water scarcity issues

  71. 07/08 13:58

    Greek Prime Minister Mitsotakis meets Patriarch of Alexandria Theodoros II

  72. 07/08 11:45

    Deputy FM for expats says Greeks in Australia a government priority

  73. 07/08 00:32

    Booking.com: Gen Z second most likely generation to volunteer when travelling

  74. 06/08 19:20

    Qatar's traditional sailboat 'Al Mubaraki' to dock at Piraeus Marina Zeas on Wednesday

  75. 06/08 17:50

    Ancient Greeks may have guided creation of China’s Terracotta Army (video)

  76. 06/08 17:28

    Greek PM Mitsotakis meets with chief of Orascom Group Naguib Sawiris

  77. 06/08 16:57

    Greek olive oil effective in the management of diabetes

  78. 06/08 13:43

    Greek Energy Minister meets US Assistant Secretary for Energy in Athens

  79. 06/08 10:08

    Greek Hoteliers Federation chief: 10%-15% drop in overnight stay rates during 2019

  80. 05/08 17:47

    Tax registry system to connect with police ID registry in Greece as of Wednesday

  81. 05/08 16:16

    Social security debtors in Greece can apply for 120-installments on Tuesday

  82. 05/08 15:56

    Greek Minister: No deadline extension for Helleniko casino concession

  83. 05/08 15:51

    Sports Tourism: Greek tennis star Tsitsipas climbs to No5 in ATP's world rankings

  84. 05/08 14:55

    Piraeus Bank completes €4.2 million property sales in Greece

  85. 05/08 13:44

    Cosco to re-submit €612 million Piraeus port master plan to new Greek government

  86. 05/08 10:55

    Mobilemoons: Newest travel trend of solo trips with a phone instead of a companion

  87. 04/08 22:54

    Tourism revenue drops by 5.8% in Cyprus during May

  88. 04/08 16:50

    Greek Ministry of Foreign Affairs sends condolences after US mass shootings

  89. 04/08 10:10

    Jazz across the water: Sister festivals in Greek island of Rhodes and Bodrum

  90. 03/08 23:51

    Greek expressionism exhibition in Athens until January 5, 2020

  91. 03/08 22:29

    Interior Minister talks expat voting with chief of Greek Community of Melbourne

  92. 03/08 14:58

    Mercouri featured at Ancient Greek Theater Festival of Carnuntum in Austria

  93. 02/08 23:09

    "13,700,000 km3" show on Greek island of Samos from August 4 to September 30

  94. 02/08 22:59

    Ancient traditions celebrated at Biddeford’s Greek Festival in Maine

  95. 02/08 18:44

    Medical Tourism: Greek Health Minister meets Israeli Ambassador to Athens

  96. 02/08 18:21

    Cyprus Minister agrees joint tourist packages with neighbouring countries

  97. 02/08 17:37

    Local authorities to provide air-conditioned havens during hot weather in Greece

  98. 02/08 17:21

    Out-of-court debt settlement mechanism to be overhauled in Greece

  99. 02/08 16:54

    National Hellenic Museum hosts event on refugee crisis in Greece

  100. 02/08 14:45

    The Bachelorette visits Greek island of Crete for season’s final episodes