Passenger Demand Moderates from Recent Peak but Stays Strong
- European carriers’ May demand climbed 7.5% over May 2016, down from the 14.5% year-over-year growth recorded in April. Capacity rose 5.2% and load factor was up 1.8 percentage points to 82.8%, which was the highest among regions. Seasonally-adjusted demand growth has moderated over the past three months, despite growing momentum in the region’s economy. This appears to relate mostly to a pause in the recovery in international traffic within the region.
- Asia-Pacific airlines saw their traffic rise 10.5% in May compared to the year-ago period. Capacity increased 7.2%, and load factor jumped 2.3 percentage points to 77.6%. Traffic on the Asia-Europe route has recovered strongly since last year’s terrorism-related disruption, surging at an annualized rate of more than 26% since November. Meanwhile, traffic on inter-Asia routes remains robust.
- Middle East carriers had a 3.7% rise in demand in May compared to a year ago, close to an eight-year low. Capacity increased 5.7%, and load factor dropped 1.3 percentage points to 69.8%. Although year-to-year comparisons are distorted by the strong performance for the same period a year ago, the slow-down also reflects the ban on the carriage of large portable electronics devices (PEDs) in the cabin from 10 airports in the region to the US, as well as a wider impact on inbound travel to the US from the Trump Administration’s proposed travel bans. Passenger traffic growth on the Middle East to North America market was already slowing in early-2017. But RPKs fell again in April (-1.2%) for just the second time since at least 2010. In view of the recent Supreme Court ruling these impacts could continue. By comparison, the route to and from Europe has continued to trend upwards this year.
- North American airlines’ traffic climbed 4.8% in May, down from 10.3% annual growth in April but still a strong result for the region compared to the 5-year average growth rate. While growth has slowed of late, the comparatively healthy regional economic backdrop, coupled with the strength of the US dollar, should support outbound passenger demand, although the latter impacts inbound demand. Anecdotal evidence also suggests that tourists may be deterred by the additional security measures put in place by the US government. Capacity rose 4.2% and load factor climbed 0.5 percentage points to 80.5%.
- Latin American airlines experienced a 9.3% increase in traffic in May compared to the same month last year. Notwithstanding ongoing challenges, an improvement in the Brazilian economy is helping to support growth, particularly on intra-South American routes. Airlines are coping well with some political and economic volatility in the region. Capacity climbed 6.8% and load factor climbed 1.9 percentage points to 81.8%.
- African airlines’ traffic rose 11.7% in May compared to the year-ago period, which was more than twice as fast as the 5.1% rise in capacity. As a result, load factor jumped 4.0 percentage points to 67.5%. Demand is supported by recovery in the key Europe market. Conditions in the region’s two largest economies are diverging, with business confidence in Nigeria rising sharply over the past six months, while South Africa’s economy fell into recession in the first quarter.
- Japan’s domestic traffic surged 10.3% year-over-year, which was close to a five-year high. The rise in demand far outpaced the growth in capacity (2.6%) and domestic load factor jumped to a record high for May of 69.1%, although this was still the lowest among the markets. This performance continues to be set against a comparatively robust economic backdrop including economic expansion for five consecutive quarters, which is the longest run in more than a decade.
- Brazil’s domestic market experienced year-over-year growth (2.6%) for only the third time in 22 months amid an improving economic backdrop, although the political backdrop remains fragile. Passenger volumes are still 8% lower in seasonally-adjusted terms than their late-2010 peak.
Home >> Travel & Tourism Section
Superstar Slovenian Tadej Pogaĉar on the hunt for further Monument glory
Tourism leaders from around the world will explore how entrepreneurship and inno ...
Dubai sports council issued a medal to appreciate the first line of defence hero ...
OMODA & JAECOO take global centre stage at Beijing Auto Show 2024
Transform Your Kitchen With Lg's Next-Gen Instaview Oven Designed For The Modern ...
Majid Al Futtaim's 'Feed the Future' Programme Donates 12,000 Meals During Ramad ...
DSMG Wraps Up 2024 Eidiya Campaign with AED 200,000 Cash Prize Bonanza for 22 Wi ...
Kia wins prestigious 2024 Car Design Award for Brand Design Language with ‘Oppo ...
Cleveland Clinic Gastroenterologist Shares Risk-Reduction and Management Strateg ...
The English College Announces Leadership Transition and Reaffirms Commitment to ...
Parmigiani Fleurier – New TORIC Collection
How Not To be Lonely To Be At The Top: The Blueprint for Transformative Leadersh ...
IATA and Partners Release Aviation Net Zero Roadmaps Comparative Review
UAE to host Second Gulf Metrology Forum in Dubai with focus on sustainability
Maserati's show ushers in the Trident's new electric era and presents the GranCa ...
Eternal Elegance: Casadei Unveils The Enchanting 2024 Bridal Collection
Khabib's Official Training Gloves Will Be Sold at Tooba Charity Auction in Dubai
Dubai draws the Curtain on the 5th Edition of the "Labor Sports Tournament& ...
Formula E and FIA to unveil new gen3 evo race car at upcoming monaco E-prix