Across the planet, flyers flocked to commercial airline seats in July 2015. “Robust” is the way the International Air Transport Association describes demand, this as total revenue passenger kilometers (number of paying passengers X kilometers flown) rose a healthy 8.2% over July 2014 levels.
While calling results “strongly positive,” IATA Director General and CEO Tony Tyler cautions, “slowing global trade and the wild gyrations of stock exchanges around the globe suggest that we may be in for some turbulence in coming months.”
One reason this should matter to you is that in good times airlines are more apt to polish their passenger product; in tighter times service can suffer.
Overall international traffic rocketed up 8.6 percent when comparing July 2014 with the same month this year. The international load factor (the percentage of seats occupied by paying passengers) was a cozy 83.5%. That means more than a few hated middle seats had passengers in them.
Worldwide, domestic passenger demand rose by a more restrained 7.6% comparing July 2014 to July 2015. Eight-three-point-six of the domestic seats airlines lofted were filled.
Some worldwide airlines enjoyed a downright deluge of international demand. Take Middle East carriers, where the timing of Ramadan saw a 19.8 percent surge in July compared to the same month last year. Asia-Pacific airlines, despite China’s economic slowdown, had an 8.5% increase compared to a year ago.
Despite the Greek drama that played out this past summer, international European demand increased by 6.7%. But it’s the load factor that’s telling: 87.3%, highest among all IATA’s geographic regions.
North American airlines international demand increased 5.3%. Load factors were a tight squeeze, with 86.5 percent of seats occupied. IATA notes “Expectations for better economic performance are supporting travel demand.”
Internationally, Latin American airlines were ascendant, registering an 8.5% increase in demand from July 2014 to July 2015. The load factor was 82.7%, reflective of the fact that “Despite recessionary conditions in Brazil and Argentina trade volumes showed strong improvement during the first half of the year.” IATA says that provided a “boost to business-related international travel.”
International demand for seats on African airlines inched into the plus column for the first time in 2015, rising 4.9% in July 2015 over July 2014. The good news is you had a better chance of avoiding that middle seat. Load factors averaged just 70.9%.
The bottom line: after a strong summer “the outlook for the autumn is unsettled to say the least,” contends the IATA chief Tyler. In an effort to keep the connectivity that air travel begets convenient and affordable, he called once again on governments to “remove barriers to growth such as heavy taxes and charges and infrastructure constraints.”
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