Moderating Demand Growth in March: IATA

GENEVA, 5th May, 2016 (WAM) - The International Air Transport Association (IATA) announced global passenger traffic results for March showing that demand (measured in revenue passenger kilometers, or RPKs) rose 5.3%, compared to the same month last year. Capacity grew slightly faster at 5.9% which pushed the average load factor down by half a percentage point to 79.6%.

March performance shows a moderate slowdown on the year-on-year growth rates recorded in January (7.2%) and February (8.6%) even after adjusting for the leap-year impact in February. Demand for international traffic grew significantly more quickly (6.2%) than that for domestic travel (3.7%).

"While in line with long-term trends, demand growth in March represented a slow-down compared to January and February. It is premature to say whether this marks the end of the recent very strong results. We do expect further stimulus in the form of network expansion and declines in travel costs. However, the wider economic backdrop remains subdued," said Tony Tyler, IATA’s Director General and CEO.

March international passenger demand rose 6.2% compared to March 2015, which was a decline compared to the 9.1% increase in February. Airlines in all regions recorded growth. Total capacity climbed 6.9%, causing load factor to slip 0.5% percentage points to 78.5%.


WAM/tfaham