News & Industry Affairs
- August Air Passenger Market Analysis
- August Air Freight Market Analysis
- July Air Passenger Market Analysis
- July Air Freight Market Analysis
- June Air Passenger Market Analysis
- June Air Freight Market Analysis
- June State of the Region: Africa & Middle East
- June Economic performance of airline industry
- May Air Passenger Market Analysis
- May Air Freight Market Analysis
- April Air Passenger Market Analysis
- April Air Freight Market Analysis
- March-April Airlines Financial Monitor
- March Air Passenger Market Analysis
- March Air Freight Market Analysis
- February Air Passenger Market Analysis
- January Air Passenger Market Analysis
- January Air Freight Market Analysis
April 2017 IATA Air Passenger Market Analysis
April air passenger demand grows at the fastest pace in six years
Further evidence of a robust start to 2017
Global revenue passenger kilometres (RPKs) grew by 10.7% year-on-year in April, up from 6.5% in March and the fastest pace since April 2011. The latest data provide further evidence of a strong start to 2017 for passenger demand growth: industrywide RPKs grew by 7.9% year-on-year so far this year to date compared to the same period in 2016. This is equivalent to growth of around 8.7% adjusting for the extra day in 2016 owing to the leap year, and is well ahead of the long-run average RPK growth rate of around 5.5%.
Favorable annual comparison is aiding growth…
The robust start to 2017 for passenger growth has
been boosted in part by the moderate slowdown in the
SA traffic trend seen in early-2016. We estimate that
this factor accounts for around 0.7 percentage points
of the year-on-year growth rate in April.
…but the upward trend in RPKs is strong
Nonetheless, there is no denying the strength of the current demand trend. Indeed, RPKs in SA terms have risen at an annualized pace of nearly 10% over the past six months or so, compared to around 6% over the same period in 2016.
This strong trend has been driven by a combination of a broad-based pick-up in global economic conditions, as well as lower airfares. Both factors have helped to underpin and to stimulate passenger demand. After adjusting for inflation, the price of air travel in the first quarter of 2017 was around 10% lower than a year ago. We estimate that this alone can explain around half the annual growth seen in April.
Highlights of the April 2017 Air Passenger Market Analysis
- Global revenue passenger kilometres (RPKs) grew by 10.7% year-on-year in April – the fastest pace in 6 years.
- Industry-wide passenger demand continues to be supported by a pick-up in economic activity and lower airfares, although the ban on personal electronic devices looks to have weighed on Middle East-North America traffic.
- Every region saw double-digit annual international RPK growth in April (Russia posted the fastest domestic growth).
- The seasonally adjusted (SA) load factor posted a fresh all-time high.
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