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Global Airline Traffic Demand Growth Strengthens in November

A man sitting in an airport terminal

Global Airline Traffic Demand Growth Strengthens in November

Total revenue passenger kilometers (RPKs) rose 8.0% compared to November 2016, the fastest growth rate in five months and up from a 7.3% year-over-year rise in October.

The International Air Transport Association (IATA) announced global passenger traffic results for November 2017 showing continued robust demand. Total revenue passenger kilometers (RPKs) rose 8.0% compared to November 2016, the fastest growth rate in five months and up from a 7.3% year-over-year rise in October. Capacity (available seat kilometers or ASKs) increased by 6.3%, and load factor rose 1.2 percentage points to 80.2%.

“The airline industry is in a good place entering 2018. November’s strong demand gives the industry momentum. The number of unique city-pair connections now tops 20,000. Passengers not only have more travel choices than ever, the cost of travel in real terms has never been cheaper. Along with delivering great value to consumers, airlines are rewarding their shareholders with normal levels of profitability. We expect 2018 to be the fourth year in a row where the industry’s return on invested capital will exceed the cost of capital. In sum, we begin the New Year with confidence,” said Alexandre de Juniac, IATA’s Director General and CEO.

“Challenges, however, remain. Security threats continue. Infrastructure issues persist. Fees and charges are a growing part of the cost base. And in many cases airports and air traffic management struggle to keep pace with demand and technology advancements. These and other challenges can only be addressed in partnership with governments. And doing so requires governments to recognize the enormous value that aviation—the business of freedom—provides to their economies and the world,” said de Juniac.

NOVEMBER 2017 (% YEAR-ON-YEAR) WORLD SHARE (1) RPK ASK PLF- %-PT (​2) PLF- LEVEL(​3)
Total Market 100.0% 8.0% 6.3% 1.2​% 80.2%
Africa 2.2% 5.6% 2.0% 2.3% 69.4%
Asia Pacific 32.9% 11.3% 9.0% 1.6% ​80.6%
Europe 26.4​% 7.9% 5.8% 1.6% 81.5%
Latin America 5.2% 5.8% 4.7% 0.9% ​82.4%
Middle East ​​9.6% 4.8% 4.4% 0.3% 70.2%
North America 23.8% 5.4% 4.6​% 0.6% 83.5​%

(1) % of industry RPKs in 2016 (2) Year-on-year change in load factor (3) Load factor level

International Passenger Markets

November international passenger demand rose 8.1% compared to the year earlier period, an increase from 7.3% in October. All regions showed growth, led for the third consecutive month by carriers in the Asia-Pacific region. Total capacity climbed 6.6%, and load factor increased 1.1 percentage points to 78.2%.

Domestic Passenger Markets

Domestic travel demand rose 7.8% in November 2017 compared to the same month in 2016, up from a 7.2% year-over-year increase in October. All markets showed growth, led again by India and China. Domestic capacity climbed 5.9%, and load factor improved 1.4 percentage points to 83.6%.

NOV 2017 (% YEAR-ON-YEAR) WORLD SHARE 1 RPK ASK PLF (%-PT)​2 PLF (LEVEL)​3
Domestic 36.4% 7.8% 5.9% 1.4​% 83.6%
Dom. Australia (4) 1.0% 3.3% -0.5% 3.0% 82.0%
Dom. Brazil (4) 1.2% 6.2% 3.6% 2.0% ​82.9%
Dom. China P.R. (4) 8.7​% 14.1% 12.9% 0.9% 82.9%
Dom. India (4) 1.3% 16.4% 10.4% 4.6% ​89.3%
Dom. Japan (4) ​​1.1% 6.7% 0.7% 4.3% 77.5%
Dom. Russian Fed (4) 1.3% 7.6% 0.9% 4.9% 79.0%
​Dom. USA (4) 15.0%​ 4.9% 3.9% 0.8% 85.8%​

(1) % of industry RPKs in 2016 
(2) Year-on-year change in load factor 
(3) Load factor level 
(4) The seven domestic passenger markets for w hich broken-dow n data are available account for 30% of global total RPKs and approximately 82% of total domestic RPKs 

View full November passenger traffic analysis

Posted by on January 11, 2018.

Categories: Travel Industry News

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