Fastest first-half growth in 12 years recorded by IATA

Published on : Wednesday, August 16, 2017

iataThe global passenger traffic data recorded by the International Air Transport Association for the month of June rose by 7.8 percent in comparison to last year.


It was close to the 7.7 per cent in May considering all regions reporting growth. The June capacity saw an increase of 6.5 per cent with an increase in the load factors that rose to one percentage point to 81.9 per cent.



There is a demand for strong travel due to lower airfares and brighter economic picture. But with a rise in cost the stimulus of lower fares will tend to fade.



The industry has a 12-year high in traffic growth with 7.9 per cent for the first six months of 2017. There was a record first half load factor of 81 per cent.



Alexandre de Juniac, IATA director general said that the uncertainties like Brexit need to be watched carefully but it is still expected 2017 to see above-trend growth.



India led all markets with a 20.3 per cent rise in domestic traffic in June. But the very strong upward trend in traffic has slowed ‘demonetization’ in November 2016.



China’s domestic traffic increased 17.6 per cent in June showing it to be ahead of the first half growth rate of 15.2 per cent.



Traffic trend did not show any slow down and second quarter GDP figures were stronger than expected.



Supply factors like airport-pair routes served that ultimately translates into time savings for passengers stimulates the air travel demand.



The peak northern summer travel season is likely to be record-breaking.


Juniac further added that it is good news that the demand for travel is strong. This will make a positive contribution to the global economy further expose infrastructure deficiencies.



Airport and air navigation infrastructure is struggling to cope with demand. Only few governments have been able to deliver on the imperatives of sufficient capacity, quality aligned with user needs and maintaining affordability.

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