IATA: June traffic up 7.8%, growth expected to continue

IATA: June traffic up 7.8%, growth expected to continue

The International Air Transport Association (IATA) announced global passenger traffic data for June showing that demand rose by 7.8 per cent compared to the year-ago period,

Meanwhile, during the first six months of 2017, the industry experienced a 12-year high in traffic growth (7.9 per cent) and a record first half load factor of 80.7 per cent.

The June results were in line with the 7.7 per cent growth recorded in May. All regions reported growth. June capacity (available seat kilometers or ASKs) increased by 6.5 per cent, and load factor rose 1.0 percentage point to 81.9 per cent.

"A brighter economic picture and lower airfares are keeping demand for travel strong. But as costs rise, this stimulus of lower fares is likely to fade. And uncertainties such as Brexit need to be watched carefully. Nonetheless, we still expect 2017 to see above-trend growth," said Alexandre de Juniac, IATA’s Director General and CEO.

June international passenger demand rose 7.5 per cent compared to June 2016. All regions recorded growth, led by airlines in Africa. Capacity climbed 6.2 per cent, and load factor climbed 1.0 percentage point to 80.6 per cent.

North American airlines’ demand rose 4.4 per cent compared to June a year ago. Capacity climbed 4.1 per cent, with load factor inching up 0.3 percentage points to 84.5 per cent. The comparatively robust economic backdrop in North America is expected to continue to support outbound passenger demand, IATA said, while cautioning that anecdotal evidence suggests that inbound tourism is being deterred by the additional security measures in place for travel to the U.S.

Demand for domestic travel climbed 8.2 per cent in June compared to June 2016, up slightly from the 7.9 per cent growth seen in May. June capacity increased seven per cent, and load factor rose 0.9 percentage points to 84.3 per cent. Led by China and India, all markets reported demand increases, but with wide variation.

See the full results here.