“Robust passenger demand” for air travel

Demand in Europe proving to be particularly high
Robust demand growth in global passenger traffic was shown in July, figures just released by the International Air Transport Association reveal. Demand in Europe proved to be particularly high, pushing up load factor to be the highest among the world’s regions.
European carriers’ demand increased by 6.7%, reflecting economic recovery in the Eurozone, IATA said, while capacity climbed 4% and load factor rose 2.2 percentage points to 87.3%.
Globally, international passenger demand rose 8.6% in July compared to the same month in 2014, with airlines in all regions recording growth, including Africa for the first time this year. Total capacity climbed 6.5%, pushing load factor up 1.6 percentage points to 83.5%.
Total revenue passenger kilometres (RPKs) rose 8.2%, an improvement on the June year-over-year rise of 5.5%. Results were given a boost by the timing of Ramadan, which fell partly in July this year but took place mostly in July in 2014. The holy month tends to subdue demand for air travel.
Asia-Pacific airlines saw July traffic increase 8.5%. Capacity rose 6.5% and load factor climbed 1.5 percentage points to 80.3%. The strong performance occurred despite declines in trade as well as slower growth in China.
North American airlines’ traffic rose 5.3%, more than double the 2.6% rise achieved in June. Capacity climbed 3.5% and load factor 1.4 percentage points to 86.5%. Expectations for better economic performance are supporting travel demand.
Middle East carriers experienced a 19.8% demand surge in July over the same month in 2014 buoyed by the timing of Ramadan. Capacity rose 17.7% and load factor climbed 1.5 percentage points to 79.6%.
Latin American airlines’ traffic climbed 8.5% compared to July 2014, capacity by 8.0% and load factor by 0.4 percentage points to 82.7%. Traffic in African rose 4.9% in July, capacity by 3.9%, load factor by 0.6 percentage points to 70.9%.
Among domestic markets, India’s demand soared 28.1% in July, likely owing to significant increases in service frequencies and improvements in economic growth. China domestic traffic climbed 10.9% year-over-year, but demand in likely to slacken in the coming months.
TTG Nordic