Africa carriers record rise in traffic despite continent’s challenges

African airlines posted an 8 per cent rise in traffic which was matched by an equivalent rise in capacity for the month of September according to the International Air Transport Association (IATA).

Load factor was almost flat at 72.0 per cent. The strong demand increase largely reflected favourable year-ago comparisons, as economic conditions in much of the continent remain challenging.

IATA disclosed this when it announced global passenger traffic results for September showing that demand (measured in revenue passenger kilometers, or RPKs) grew 7 per cent compared to the same month in 2015.

The clearing house for over 250 global airlines disclosed that this was the strongest year-over-year increase in seven months, adding that capacity climbed 6.6 per cent and load factor edged up 0.3 percentage points to 81.1 per cent. Growth in domestic traffic slightly outpaced growth in international traffic.

IATA’s Director-General and CEO, Alexandre de Junaic said, “September’s growth in passenger demand was healthy. Importantly, this rebound from August weakness suggests that travel demand is showing its resilience in the aftermath of terror attacks.”

“We must, of course, be ever-alert to the ongoing terror threat. And overall the industry is still vulnerable to being buffeted by rising geopolitical tensions, protectionist political agendas, and weak economic fundamentals. This will still be a good year for the airline industry’s performance, but our profitability will continue to be hard-won.”

He noted that international RPKs climbed 6.9 per cent with airlines in all regions recording growth compared to 2015. Total capacity climbed 7.2 per cent, causing load factor to slide 0.2 percentage points to 80.4 per cent.

European carriers saw September demand rise 5.2% over September 2015. Capacity rose 5.7% and load factor slipped 0.4 percentage points to 84.8%, which was the highest among regions. Demand growth seems to be returning to normal after the disruption caused by terrorism and political instability.

Asia-Pacific airlines’ traffic rose 8.6% in September compared to the year-ago period, although there are still signs of Asian travelers being put off by terrorism in Europe. Capacity increased 7.7%, and load factor rose 0.7 percentage points to 77.9%.

Middle East carriers had an 11.5% rise in demand in September compared to a year ago, which was the largest increase among regions. Capacity rose faster, however, up 13.8%, and load factor dropped 1.5 percentage points to 73.9%.

North American airlines experienced a 3.3% rise in demand. While the upward trend in international traffic has eased of late, seasonally-adjusted passenger volumes have risen at an annualized rate of 6% since March. Capacity rose 4.2% and load factor fell 0.7 percentage points to 81.5%.

· Latin American airlines’ September traffic rose 7.1% compared to the same month last year, aided by strong demand on international routes within the region. Capacity climbed just 2.4% and load factor surged 3.6 percentage points to 83.7%, second highest among regions.

Google+

Wole Shadare

Related Post