TravelNewsAsia.com
Thu, 12 January 2017

Aviation: Strong Demand Growth Returns in November 2016

IATA's global passenger traffic results for November 2016 show the strongest demand growth in nine months.

Total revenue passenger kilometers (RPKs) rose 7.6% compared to November 2015. Capacity (available seat kilometers or ASKs) increased by 6.5%, and load factor rose 0.8 percentage points to 78.9%.

"Stronger demand for air travel reflects—and is supporting--a pick-up in the global economic cycle. As the stimulus effect of lower oil prices recedes in the rear view mirror, the strength of the economic cycle will play a key role in the pace of demand growth in 2017," said Alexandre de Juniac, IATA’s Director General and CEO.

Japan Airlines JA621J

November international passenger demand rose 8.0% compared to the year earlier, with airlines in all regions showing growth. Total capacity climbed 6.8%, and load factor edged up 0.9 percentage points to 77.1%.

 European carriers saw demand increase by 8.3% in November 2016, while traffic grew at an annualized pace of 12% over the past five months or so. This suggests that the disruption caused by terrorism and political instability has lifted, against a backdrop of a growing Eurozone economy. Capacity rose 6.8% and load factor climbed 1.1 percentage point to 80.8%.

Asia Pacific airlines’ November traffic also climbed 8.3% compared to the year-ago period. Capacity increased 7.1% and load factor rose 0.8 percentage points to 77.4%. The strong upward trend in demand has slowed recently but it is not clear whether this is a longer-term development or just a brief pause.

 Middle East carriers led all regions with a 12.2% demand increase. But the upward trend in the region’s seasonally adjusted traffic has paused, with November’s level coming in unchanged from that of July. Capacity rose 11.6% and load factor rose 0.3 percentage points to 68.7%.

 North American airlines’ traffic climbed 1.5% in November. Traffic across the Pacific is growing rapidly but North Atlantic demand is moderating. Capacity rose 1.2% and load factor edged up 0.2 percentage points to 78.7%.

Latin American airlines saw November traffic climb 7.3% compared to November 2015. Capacity increased by just 2.9%, pushing load factor up 3.4 percentage points to 82.2%. The upward trend in international traffic has remained strong despite difficult conditions on the North America-South America route, supported by healthy international demand within South America.

 African airlines experienced an 8.2% rise in demand compared to November 2015. Economic conditions in much of Africa remain challenging, particularly in the biggest economies of Nigeria and South Africa, but the upward trend in seasonally-adjusted passenger traffic has reasserted itself more recently, supported by strong demand on routes to and from Asia and the Middle East. Capacity rose 5.1% and load factor climbed 1.9 percentage points to 66.3%.

Domestic Passenger Markets

Domestic travel demand rose 7.1% in November 2016 compared to the same month in 2015, but results continued to vary widely, with China, India and Russia showing double-digit growth while demand declined in Brazil and Japan. Domestic capacity climbed 6.1%, and load factor improved 0.8 percentage points to 82.2%.

 Air travel in Japan declined 0.5% in November. Traffic has trended sideways in seasonally-adjusted terms for the best part of two years, against a backdrop of weak momentum in consumer spending.

Russia’s 15.5% increase largely reflects favorable comparisons with the year-earlier period following the collapse of Transaero in  utumn 2015. But the recovery in seasonally-adjusted domestic traffic is continuing, alongside signs that the country’s economic recession is easing.

"The airline industry continues to deliver strong results. In 2017, for a third consecutive year, the industry’s return on invested capital will exceed the cost of capital. Passengers benefit from the industry’s success. Travel has never been more accessible—with great fares, many options and more destinations. Nevertheless uncertainty lies ahead. The threat of terrorism, questions over the durability of the economic upswing, rising oil prices and increasing protectionist rhetoric are among the concerns. The industry has reshaped itself and strengthened its resilience to shocks. We should see another solid year of collective profitability for the airlines in 2017. But we must be vigilant," said de Juniac.

See also: HD Videos from AAPA's 60th Assembly of Presidents in Manila, Philippines.

See other recent news regarding: IATA, Traffic, Aviation.

Subscribe to our Latest Travel News Daily Email Free of Charge by simply entering your email address to the right. You can also stay updated with our RSS Feed Free Travel News RSS Feed and even add the travel news to your website. Have questions? Please read our travel news FAQ.
     
Exclusive HD video interview with Mr. Fumihiro Sakakibara, General Manager - Japan, Macao Government Tourism Office. Aviation industry update from the Group CEO of AirAsia, Mr. Tony Fernandes, and Gary Chapman, Emirates' President Group Services and dnata. Exclusive HD video interview with Mr. John R. Rolfs, General Manager of The Ritz-Carlton, Tokyo and Vice President Japan & Korea. In this interview, filmed in a luxurious suite at The Ritz-Carlton, Tokyo on Sunday, 24 September 2017, we ask Mr. Rolfs to tell us more about the property.
Macao Tourism Update Aviation: AirAsia and Emirates The Ritz-Carlton, Tokyo
What exactly is going to happen to The Dusit Thani Bangkok hotel, when will it close, what about the staff, when will the new Dusit Thani Bangkok open and what will it be like? In this exclusive HD video interview with Ms. Sukanya Janchoo, General Manager of The Dusit Thani Bangkok, Steven Howard of TravelNewsAsia.com asks Khun Sukanya about the hotel, its markets, RevPAR and these major changes. Travelodge Hotels Asia’s Brands and Expansion Plans - Exclusive HD Video Interview with Stephen Burt, Chairman. Exclusive HD video interview with Alejandro Bernabe, Group Director of Avani Hotels and Resorts. We talk about Avani Hotels' future plans and what exciting new developments are in the pipeline. You will also learn that Avani is about to announce a new sub brand, is currently building its first resort with private pool villas and what the group's position is on new technology.
Dusit Thani Bangkok Travelodge Hotels Asia Avani Hotels & Resorts
Jonathan Wigley, CEO of Travelodge Thailand, outlines expansion plans in HD Video Interview. Exclusive HD video interview with Myanmar's Minister of Tourism and Hotels, H.E. U Ohn Maung, about the status of tourism in the beautiful and mystical country of Myanmar (formerly known as Burma). Birth of a Luxury Thai Hotel Brand - HD Video Interview with Christopher E. Stafford, Chief Operating Officer of the newly formed 137 Pillars Hotels & Resorts.
CEO of Travelodge Thailand Myanmar Tourism Update Birth of Luxury Thai Hotel Brand
This HD video tour of Thai AirAsia X's brand new 337-seat Airbus A330-300 aircraft was filmed at Don Mueang Airport in Bangkok, Thailand on 14 May 2014  Exclusive HD video interview with Jaime J. Bautista, President & Chief Operating Officer (COO) of Philippine Airlines (PAL) HD video of the interior and exterior of a Thai Vietjet Airbus A320-200.
Thai AirAsia X A330-300 PAL President & COO Thai Vietjet A320-200
Inside Qatar Airways Boeing 787-8 Dreamliner - HD Video It takes 800 workers between 65 and 80 days to assemble, install, test, paint, furnish and deliver an Emirates Airbus A380. Showers, Bars, Lounge - The Emirates Airbus A380 Has Them All - HD Video Tour Thai Airways International Takes Delivery of Brand New Boeing 777-300ER
Qatar Airways B787 Emirates A380 Thai Airways B777-300ER
Latest Travel News
Advertising
Advertising
Copyright © 1997-2017 ASIATravelTips.com/TravelNewsAsia.com