Tighter capacity increases mean better load factors
European airlines’ international traffic climbed 5.4% in August compared to the same month a year ago, on a 3.7% rise in capacity, pushing load factor up 1.4 percentage points to 86.4%, the latest report from the International Air Transport Association says.
Economic improvements and rising consumer confidence in Europe are supporting the growth in demand. Business confidence is also strengthening with increased manufacturing and export activity.
North American airlines saw demand rise 5.1% over a year ago. This was actually the slowest growth for any region but is still close to double the year-to-date increase of 2.7%. A 4% rise in capacity meant that load factor climbed one percentage point to 88.1%, the highest for any region.
Asia-Pacific carriers recorded an increase in passenger traffic in August of 8.6%. With capacity up 6.3%, load factor rose 1.7 percentage points to 81.6%. Middle East carriers saw traffic growth at 15.1%, capacity expansion at 10.8% and load factor at 82%. Latin American airlines posted a demand rise of 9.8%, a capacity rise of 7.6% and load factor of 80.8%. African airlines’ traffic climbed 5.4%, capacity by 6.5%, resulting in load factor of 70.9%. Africa was the only region to see a decline in the load factor for the month.
[photo courtesy Icelandair]