Higher Demand For Air Passenger Traffic In July: IATA

KUALA LUMPUR, Sept 8 (Bernama) -- Global air passenger traffic for July showed higher demand growth with total revenue passenger kilometres up 5.9 per cent year-on-year (y-o-y), with all regions reporting growth. The International Air Transport Association (IATA) said available seat kilometres increased by six per cent and load factor was 83.7 per cent, just 0.1 percentage point below the record high achieved in July 2015. IATA Director-General and Chief Executive Office Alexandre de Juniac said the stronger demand was stimulated by lower fares which were supported by lower oil prices. "Passenger demand has broadly grown in line with the average in the last 10 years but the industry faces some potential headwinds including lingering impacts from the series of terrorist attacks and fragile economic backdrop. "Speed is of the essence. As an industry, we must be prepared for rapid innovation in order to manage shocks and take advantage of opportunities as they arise," he said. IATA said July international passenger demand rose 7.1 per cent compared to July 2015, which was an increase over the five per cent yearly increase in June 2015, contributed by positive growth of airlines in all regions. For this segment, Middle East carriers posted the strongest growth in the month with a 13.1 per cent increase y-o-y while Asia-Pacific airlines' saw a 9.8 per cent y-o-y rise in traffic. Domestic travel demand rose 3.8 per cent y-o-y in July 2016, its slowest pace in 19 months. "In this segment, China and India are booming while Brazil and Russia are sliding backwards. "Brazil’s traffic decline reflects not only the country’s economic turmoil but that options for travellers are being curtailed by fewer and less frequent air connections. "August demand could see an uptick due to the Olympics," IATA said. -- BERNAMA