Global airlines record passenger demand growth

IATA has posted a global passenger traffic results for September, showing that demand (measured in revenue passenger kilometers, or RPKs) grew 7% compared to the same month in 2015. According to IATA, this was the strongest year-on-year increase in seven months. Capacity climbed 6.6 per cent and load factor edged up 0.3 percentage points to 81.1%. Growth in domestic traffic slightly outpaced growth in international traffic.​ Meanwhile, African airlines posted an 8% rise in traffic, which was matched by an equivalent rise in capacity. Load factor was almost flat at 72.0%. The strong demand increase largely reflected favourable year-ago comparisons, as economic conditions in much of the continent remain challenging. IATA’s CEO Alexandre de Juniac noted that the September’s growth in passenger demand was healthy.“Importantly, this rebound from August weakness suggests that travel demand is showing its resilience in the aftermath of terror attacks. “We must, of course, be ever-alert to the ongoing terror threat. And overall the industry is still vulnerable to being buffeted by rising geopolitical tensions, protectionist political agendas, and weak economic fundamentals. This will still be a good year for the airline industry’s performance, but our profitability will continue to be hard-won,” de Junaic said.<br/>