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Global air passenger demand growth strengthens in November 2017

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kilometers rise at 5-month high of 8.0% in November 2017

The (IATA) announced global traffic results for November 2017 showing continued robust demand. Total kilometers (RPKs) rose 8.0% compared to November 2016, the fastest growth rate in five months and up from a 7.3% year-over-year rise in October. (available seat kilometers or ASKs) increased by 6.3%, and load factor rose 1.2 percentage points to 80.2%.

"The is in a good place entering 2018. November's strong demand gives the industry momentum. The number of unique city-pair connections now tops 20,000. Passengers not only have more than ever, the cost of travel in real terms has never been cheaper. Along with delivering great value to consumers, airlines are rewarding their shareholders with normal levels of profitability. We expect 2018 to be the fourth year in a row where the industry's return on invested capital will exceed the cost of capital. In sum, we begin the New Year with confidence," said Alexandre de Juniac, IATA's

"Challenges, however, remain. Security threats continue. Infrastructure issues persist. Fees and charges are a growing part of the cost base.

And in many cases airports and air traffic management struggle to keep with demand and These and other challenges can only be addressed in partnership with governments. And doing so requires governments to recognize the enormous value that aviation - the business of freedom - provides to their economies and the world," said de Juniac.

International Markets

November international demand rose 8.1% compared to the year earlier period, an increase from 7.3% in October. All regions showed growth, led for the third consecutive month by carriers in the region. Total climbed 6.6%, and load factor increased 1.1 percentage points to 78.2%.

airlines' November traffic climbed 10.8% compared to the year-ago period, driven by strong regional economic growth and continuing expansion of options for travelers. increased 8.7% and load factor rose 1.5 percentage points to 78.6%.

European carriers saw demand increase by 7.9% in November 2017. Economic conditions in the region remain very favorable, with business confidence recently having risen to its strongest level in seven years. climbed 6.2% and load factor rose 1.3 percentage points to 81.9%, which was tied with as the highest load factor among the regions.

carriers had a 4.9% demand increase, which was the lowest among the regions. The market segment to and from continues to be affected by the now-lifted ban on personal electronic devices, as well as a wider impact stemming from the to the US from certain countries. rose 4.3% and load factor lifted 0.4 percentage point to 70.1%.

North American airlines' traffic climbed 6.4%, in November. rose 6.1% and load factor edged up 0.2 percentage point to 79.1%. The relatively vigorous economic backdrop is supporting outbound demand, but this appears partly to be offset by a negative impact on to the US from the additional security measures involved with traveling there.

Latin American airlines' November traffic climbed 7.2% compared to November 2016. This was broadly in line with the region's five-year average growth rate, although on a seasonally-adjusted basis, volumes are still below the peak level reached in July 2017. also increased by 7.2%, keeping load factor flat at 81.9%.

experienced a 7.9% rise in demand compared to November 2016. Volumes have started to trend upwards strongly again in seasonally-adjusted terms in recent months, in line with an improvement in business confidence in key economies including and Indicators in South Africa, by contrast, are still consistent with falling economic activity. rose 3.7% and load factor climbed 2.7 percentage points to 68.3%.

Domestic Markets

Domestic rose 7.8% in November 2017 compared to the same month in 2016, up from a 7.2% year-over-year increase in October. All markets showed growth, led again by and Domestic climbed 5.9%, and load factor improved 1.4 percentage points to 83.6%.

India's domestic traffic rose 16.4% in November, marking the 39th consecutive month of double-digit domestic growth.

Australia's domestic traffic rose 3.3% in November, compared to November 2016, which was a 14-month high. This has occurred against a backdrop of tightening capacity, which dropped 0.5% in November.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 11 2018. 15:22 IST
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