African airlines experience 5.7% rise in demand for Nov. 2018
The International Air Transport Association (IATA) has announced healthy but moderating global passenger traffic results for November 2018 with African airlines experiencing a 5.7 percent rise in demand compared to November 2017, down from 6.4 percent in October but higher than the five-year average of 5.8percent .
Total revenue passenger kilometers (RPKs) rose 6.2 percent compared to November 2017, a slight deceleration from 6.3 percent growth in October. Capacity (available seat kilometers or ASKs) increased by 6.8 percent over the year-ago period, and load factor dipped 0.4 percentage point to 80.0 percent. It was only the third time in two years that load factor fell on a year-to-year basis.
“Traffic is solid. But there are clear signs that growth is moderating in line with the slowing global economy. We still expect 6percent demand growth this year. But trade tensions, protective tariffs and Brexit are all uncertainties that overhang the industry,” said Alexandre de Juniac, IATA’s Director General and CEO.
International Passenger Markets
November international passenger demand rose 6.6% compared to the year earlier period, up from 6.2percent in October. All regions showed growth, led by carriers in Europe. Total capacity climbed 6.7 percent, and load factor dipped 0.1 percentage point to 78.4percent.
European carriers saw demand increase by 9.0percent in November 2018, which was a nine-month high. Given the mixed signs on the economic backdrop in the region it is unclear whether this pace of growth can be sustained. Capacity climbed 9.1 percent and load factor slipped 0.1 percentage point to 82.1percent, the highest load factor among the regions.
Asia-Pacific airlines’ November traffic climbed 6.0 percent compared to the year-ago period, up from 5.7 percent growth in October. Capacity also rose 6.0 percent and load factor was flat at 79.1 percent. Growth is underpinned by rising living standards and continuing expansion of options for travelers.
Middle East carriers had a 2.8 percent demand increase, which was the lowest among the regions for a third consecutive month. Capacity rose 5.6 percent and load factor slipped 1.9 percentage points to 69.0 percent.
North American airlines’ traffic climbed 6.1percent, in November, up from 5.7percent in October and well ahead of the five-year average rate of 4.0 percent. Capacity rose 3.8 percent and load factor edged up 1.7 percentage points to 80.6 percent. Demand is supported by comparatively strong momentum in the US economy.
Latin American airlines’ November traffic climbed 5.8 percent compared to November 2017, which was an increase from 5.2 percent growth recorded in October. Despite the increase, growth has slowed on a seasonally-adjusted basis. Capacity rose 6.6 percent and load factor slipped 0.6 percentage point to 80.6percent.
African airlines experienced a 5.7 percent rise in demand compared to November 2017, down from 6.4 percent in October but higher than the five-year average of 5.8percent.
Growth is occurring despite challenges in the continent’s largest economies, Nigeria and South Africa. Capacity rose 3.9 percent and load factor climbed 1.2 percentage points to 68.9 percent.
Domestic Passenger Markets
Domestic travel demand rose 5.6 percent in November 2018 compared to the same month in 2017, its slowest pace in 11 months and down from 6.5 percent in October. All markets except Australia showed growth. Domestic capacity climbed 6.9 percent, and load factor dropped 1.0 percentage point to 82.8 percent.
India’s domestic traffic rose 13.3 percent in November compared to November 2017, marking the 51st consecutive month of double-digit domestic growth. However, it was also the slowest increase in 16 months.
Brazil’s domestic traffic rose to a four-month high of 5.3 percent in November, against a fragile economic backdrop.
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