Dubai PR Network, Online Press Release from Dubai and Middle East
 
Aviation, Airline & Aerospace(Travel & Tourism)
Filter PR by
  
Passenger Demand Continues on Moderate Upward Path
 

Dubai, United Arab Emirates - November 10, 2019:     The International Air Transport Association (IATA) announced global passenger traffic results for September 2019 showing that demand (measured in revenue passenger kilometers or RPKs) climbed 3.8% compared to the same month last year, broadly unchanged from August’s performance. Capacity (available seat kilometers or ASKs) increased by 3.3%, and load factor climbed 0.4% percentage point to 81.9%, which was a record for any September. 

 

“September marked the eighth consecutive month of below average demand growth. Given the environment of declining world trade activity and tariff wars, rising political and geopolitical tensions and a slowing global economy, it is difficult to see the trend reversing in the near term,” said Alexandre de Juniac, IATA’s Director General and CEO.


International Passenger Markets


September international passenger demand rose 3.0%, compared to September 2018, which was a decline from 3.6% year-over-year growth achieved in August. All regions recorded traffic increases, led by airlines in North America. Capacity climbed 2.6%, and load factor edged up 0.3 percentage point to 81.6%.
Asia-Pacific airlines saw September traffic increase 3.6% compared to the year-ago period, an increase over the 3.3% annual growth recorded in August.

 

Despite the uptick, growth remains well below that seen in 2018. This is occurring amid a weaker economic backdrop in some of the region’s key states as well as trade tensions between the US and China and, more recently, between Japan and South Korea. Political unrest in Hong Kong has also contributed to subdued regional demand and led to sharp capacity cuts to/from the hub. Capacity rose 5.0% and load factor slid 1.1 percentage points to 78.2%.


European carriers experienced a 2.9% rise in September traffic, the region’s weakest performance this year and a decline from the 4.2% year-over-year rise recorded in August. In addition to slowing economic activity and faltering business confidence in many of the key European economies, the result was also affected by the demise of a number of airlines, along with pilot strikes. Capacity rose 2.5%, and load factor climbed 0.3 percentage point to 86.9%, which was the highest among regions. 


Middle Eastern airlines posted a 1.8% traffic increase in September, which was a slowdown from a 2.9% rise in August. Capacity was up just 0.2%, with load factor climbing 1.2 percentage points to 75.2%. International traffic growth continues to be affected by a mix of structural challenges in some of the region’s large airlines, geopolitical risks and weaker business confidence in some countries.


North American carriers’ international demand climbed 4.3% compared to September 2018, well up from the 2.9% growth recorded in August and the strongest performance among the regions. Capacity rose 1.6%, and load factor accelerated 2.2 percentage points to 83.0%. Demand is being supported by solid consumer spending and continued job creation.


Latin American airlines had a 1.2% demand increase in September compared to a year ago, which was down from 2.3% growth in August. Capacity fell 1.6% and load factor surged 2.3 percentage points to 82.5%. Latin American carriers continue to face several challenges including some weaker economic and business confidence outcomes, political and social unrest in key states, and currency exposure to the strengthening US dollar.


African airlines’ traffic climbed 0.9% in September, a steep fall-off from the 4.1% growth recorded in August. Looking through the recent volatility in the numbers, however, traffic growth for the third quarter of 2019 remains solid at around 3% year-over-year.  Capacity rose 2.5%, however, and load factor dipped 1.1 percentage points to 71.7%.


Domestic Passenger Markets


Demand for domestic travel climbed 5.3% in September compared to September 2018, which was an improvement over the 4.7% annual growth recorded in August. Capacity rose 4.7% and load factor increased 0.5 percentage point to 82.3%. 


Japanese airlines saw domestic traffic climb 10.1% in September, well up on the 2.0% annual increase recorded in August. However, results are distorted by the weak outcome in September 2018 owing to the disruption caused by Typhoon Jebi.


US airlines’ domestic traffic surged 6.0% in September compared to September 2018, up from 3.9% growth in August year over year. As with Japan, the performance is somewhat exaggerated owing to the softer demand environment experienced in 2018. Nevertheless, the demand environment is robust.

The Bottom Line


“These are challenging days for the global air transport industry. Pressure is coming from many directions. In a matter of weeks, four airlines in Europe went bust. Trade tensions are high and world trade is declining. The IMF recently revised down its GDP growth forecasts for 2019 to 3.0%. If correct, this would be the weakest outcome since 2009, when the world was still struggling with the Global Financial Crisis. 

 

“At times like these, governments should recognize the power of aviation connectivity to ignite the economy and drive job creation. Instead, too many governments—in Europe in particular—are fixated on aviation as the goose that lays the golden eggs of taxes and fees. It’s the wrong approach. Aviation is the business of freedom. Governments should harness its power to drive GDP growth, not tie it down through heavy and punitive tax and regulatory regimes,” said de Juniac. 
 


Posted by : Dubai PR Network Editorial Team
Viewed 6783 times
PR Category : Travel & Tourism
Posted on : Sunday, November 10, 2019  10:54:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : MBRSC launches 22nd IAA Humans in Space Symposium
Next Story : Astronaut Christina H. Koch Shares for the first-time photo ...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Make Up for Ever Introduces for the First Time Its New Active Care-in-foundation to Revive... [5961-Views]
HONOR 2020 H1 Business Achievements in International Markets [3817-Views]
Here's Why A Silicone Cleansing Brush Champions Other Cleansing Tools and Techniques [3382-Views]
Panasonic Jaguar Racing Head to Berlin for a Lockdown Showdown [3177-Views]
Samsung Launches Galaxy Watch3 and Galaxy Buds Live [3095-Views]
Save up to AED 25,000 on Pre-Owned Lexus Cars with Al-Futtaim Auto Fest [3067-Views]
Get Your No-MakeUp MakeUp Look With Hourglass [3046-Views]
Safe Start-up of Unit 1 of Barakah Nuclear Energy Plant Successfully Achieved [2948-Views]
Parmigiani Fleurier Tonda 1950 Tourbillon [2632-Views]
Schneider Electric Shows They Are Acting to Build a Green and Inclusive Future for All Thr... [2599-Views]
Sony Middle East & Africa Announces ‘Ready for PlayStation®5' for current BRAVIA™ TVs [2517-Views]
UAE Team Emirates Back to Winning Ways [2308-Views]
Lacoste Launches the Roland - Garros Eyewear Collection [2304-Views]
Introducing the New Omega Constellation Gents' Collection' [2288-Views]
Pre-Orders for Samsung's Galaxy Note20 and Galaxy Note20 Ultra Now Open in the UAE [2148-Views]
Jafza Sets a New Benchmark With ‘collaboration for Safe and Sustainable Growth' Webinar' [2128-Views]
Up to €500,000 to Support the Most Promising Innovators: The Agrofood BIC Accelerator Issu... [1968-Views]
The Last Few Weeks of Dubai Shopping Mall Group's Summer Promotion [1960-Views]
Dubai Sports Council and Ski Dubai to Host One of the World's First Snow Sports Competitio... [1952-Views]
Kia Motors Collects Over 2,000 Pairs of Football Boots via UEFA Europa League Trophy Tour ... [1919-Views]
Cebu Pacific Advisory: Suspension of Domestic Passenger Flights to/from Manila – Aug 4 to ... [1919-Views]
The Best Just Got Better – Sony Middle East & Africa Announces WH-1000XM4 Industry-Leading... [1792-Views]
New Month, New Goals [1788-Views]
No Premium Without Responsibility: BMW Group Makes Sustainability and Efficient Resource M... [1771-Views]
Post-COVID Travel is Set to Become Smarter. Here's How. [1771-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories