INTERNATIONAL. Global passenger traffic experienced a rebound in February of +7.6% year-on-year in revenue passenger kilometres (RPKs) after a slow start to the year, according to International Air Transport Association (IATA).
Factors including the later timing of the Lunar New Year in 2018 resulted in slower traffic growth in January of +4.6% year-on-year.
Monthly capacity (available seat kilometres/ASKs) increased by +6.3%, and load factor rose 0.9 percentage point to +80.4%, surpassing the previous record for the month of +79.5% set in February 2017.
“As expected, we saw a return to stronger demand growth in February, after the temporary slowdown in January. This is being supported by the robust economic backdrop and solid business confidence. However, increases in fuel prices – and labour costs in some countries – likely will temper the amount of traffic stimulation from lower airfares this year,” said IATA Director General and CEO Alexandre de Juniac. 
International Passenger Markets
February international passenger traffic rose +7.2% compared to February 2017, which was up from the +4.2% increase recorded in January. All regions recorded better year-on-year growth compared to January’s results, led by airlines in Latin America. Total capacity climbed +5.9%, and load factor rose 1.0 percentage point to 79.3%.
European carriers saw February demand increase by +6.8% compared to a year ago, a slight increase on January’s +6%. Passenger volumes are increasing at a double-digit annualised rate alongside supportive economic conditions in Europe, said IATA. Capacity rose +5% and load factor increased 1.4 percentage points to 82.2% – the highest across all regions.
Asia Pacific traffic in February rose +9.1% year-on-year, supported by healthy regional economic growth and route expansion. Capacity increased +8.4% and load factor climbed 0.6 percentage point to 80.5%.
Middle East carriers recorded a +3.4% increase in the same month. Capacity rose +3.9% but load factor slipped 0.3 percentage point to 74.1%. Carriers in the region have faced significant headwinds over the past year including the temporary ban on large portable electronic devices as well as the proposed travel bans to the US from some Middle Eastern countries.
North American traffic climbed +7.2% in February, supported by the relatively strong US economy. The weaker dollar has offset some of the negative impacts on inbound travel, according to IATA. Capacity rose +4.6% and load factor was up 1.9 percentage points to 78%.
Latin American airlines posted the fastest year-on-year growth for a second consecutive month. Traffic in February climbed +9.8% compared to February 2017, and up from +8.1% growth in January. Traffic continues to recover from the impacts of the 2017 hurricane season. Capacity increased by +8.9%, and load factor rose 0.6 percentage point to 81.5%.
African airlines experienced a +6.3% rise in traffic for the month. The growth occurred amid an improving regional economic outlook. Contributors included rising business confidence in Nigeria over the past 15 months and rising political confidence in South Africa. Capacity rose +3.3%, and load factor climbed 1.9 percentage points to 67.8%.
Domestic Passenger Markets
Domestic travel demand rose +8.2% in February compared to February 2017, up from +4.9% year-on-year growth in January, with all markets reporting increases, led by India and China. Domestic capacity climbed +7%, and load factor increased 0.9 percentage point to 82.3%.
India’s domestic traffic rose +22.9%, the 42nd consecutive month of double-digit year-on-year growth, and load factor exceeded 90% for the first time on record. Passenger demand continues to be stimulated by network growth that translates into time savings for air travellers, IATA explained.
Australian domestic traffic rose +3.9% compared to a year ago, which was a 17-month high.
“All around the globe, we see the same positive picture of growth in demand for aviation connectivity. Aviation is the business of freedom, enabling people to lead better lives. Aviation has helped to lift millions from poverty, but for aviation to deliver even greater benefits in future, adequate, affordable infrastructure is a must,” said de Juniac.
He added: “A case in point is the Latin American region, where aviation already supports jobs for 5 million people and US$170 billion in GDP. The potential for aviation to do far more exists, but without concerted action by governments to address capacity shortfalls, the region could face an infrastructure crisis in the future.
“Within the region, Mexico City is the most critical of the bottlenecks. The current airport was designed for 32 million passengers annually but serves 47 million. The solution is a new airport which is already under construction. But its future has been politicised in the current presidential election. The vital need for the new airport needs to be understood by all.”
