IATA: Global passenger demand rebounded in October

by Abel Hampton December 6, 2017, 0:16
IATA: Global passenger demand rebounded in October

Middle East carriers recorded a 6.9 percent rise in demand in October year on year, up from 3.9 percent in September, said the International Air Transport Authority (IATA) in its monthly report released Monday.

According to the forecast by the industry's global trade association, combined net profits will hit $38.4 billion, from a revised $34.5 billion in 2017, with United States carriers weighing in with nearly half.

Similarly, airlines in from across all regions reported an increase in overall year-on-year demand in October.

Moneycontrol News India's domestic air traffic beat China's growth by double, according to data from the International Air Transport Association (IATA) on Monday.

The positive outlook is the result of solid airline safety performance; a clear strategy that is delivering results on environmental performance; more people than ever are traveling; demand for air cargo is at its strongest level in over a decade; employment is growing; and more routes are being opened. "It's still, however, a tough business, and we are being challenged on the cost front by rising fuel, labour and infrastructure expenses", said Alexandre de Juniac, Iata's director general and chief executive. "Aviation is the business of freedom and a catalyst for growth and development", he said, adding the industry benefits to the economy include 2.7 million direct jobs and support for 3.5 percent of global economic activity.

"We are eight years into this air travel cycle, but we see no reason at present to expect that cyclical pattern to repeat itself", IATA chief economist Brian Pearce said, with reference to a trend that would usually indicate a major downturn was due. Meanwhile, airlines in the Asia-Pacific region witnessed an increase in freight volumes by 4.4 percent, and the capacity expanded by 3.9 percent in October 2017, compared to the same period previous year.

A rise in cargo carried to 62.5 million tonnes, up 4.5% on the 59.9 million tonnes in 2017.

Africa: African carriers are expected to continue to make small losses of $100 million in 2018 following a collective net loss of $100 million in 2017. Worldwide capacity is up 6.4% for the year so far, and the global passenger load factor is up one point YOY to 81.6%.

This is especially impressive considering that October was the 38th consecutive month of double-digit passenger percentage growth for India.

This indicated a lower forecast for 2017 than announced in June when IATA said Middle East profit would stand at $400m. "This led cargo volume to grow at twice the pace of the expansion in world trade (4.3%)", said IATA.

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