The International Air Transport Association (IATA) says that global passenger traffic data for August 2019 has increased year-over-year.
The traffic data (measured in total revenue passenger kilometers or RPKs) climbed 3.8% compared to the same period last year. This was above the 3.5% annual increase for July. August capacity (measured available seat kilometers or ASKs) increased by 3.5%.
Load factor climbed 0.3% percentage point to 85.7%, which was a new monthly record, as airlines continue to maximise asset use.
Alexandre de Juniac, IATA’s director general and CEO, commented: “While we saw a pick-up in passenger demand in August compared to July, growth remains below the long-term trend and well-down on the roughly 8.5% annual growth seen over the 2016 to Q1 2018 period.
"This reflects the impact of economic slowdowns in some key markets, uncertainty over Brexit and the trade war between the US and China. Nonetheless, airlines are doing a great job of matching capacity to demand. With passenger load factors reaching a new high of 85.7% this is good for overall efficiency and passengers’ individual carbon footprint."
Asia-Pacific airlines’ August traffic increased 3.5% compared to the year-ago period, which was an acceleration compared to a 2.6% rise in July. However, this remains well below the long-term average growth rate of around 6.5%, reflecting slowing economic growth in India and Australia as well as the impact of trade disputes. Capacity rose 3.9% and load factor slid 0.4 percentage point to 82.8%.
European carriers saw August demand climb 3.7% year-to-year, fractionally up over a 3.6% increase for July. Capacity rose 3.4%, and load factor climbed 0.2 percentage point to 89%, which was the highest among regions.
In the Middle East, airlines posted a 2.9% traffic increase in August, which was an increase from a 1.7% rise in July. While this was better than the average of the past 12 months, it remains far below the double-digit growth trend of recent years. Capacity increased 1.3%, with load factor rising 1.3 percentage points to 82.4%.
North American carriers’ international demand rose 2.5% compared to August a year ago, up from a 1.4% increase in July. Capacity rose 1.3%, and load factor grew by 1.0 percentage point to 88.3%. As with the Middle East and Asia Pacific, this performance represents an improvement from July, but remains relatively soft compared to long-term norms, most likely reflecting trade tensions and slowing global demand.
Latin American airlines experienced a 2.3% demand increase in August compared to the same month last year, down from a 4% annual growth in July. Argentina’s financial and currency crises, combined with challenging economic conditions in Brazil and Mexico, contributed to the depressed performance. Capacity fell 0.3% and load factor surged 2.1 percentage points to 83.9%.
Lastly, African airlines’ traffic climbed 4.1% in August, up from 3.2% in July. This solid performance comes after South Africa – the region’s second largest economy – returned to positive economic growth in Q2 2019. Capacity rose 6.1%, however, and load factor dipped 1.4 percentage points to 75.6%.