Passenger demand accelerates in June, says IATA

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KUALA LUMPUR (Aug 10): Global passenger traffic results for June showed that demand (measured in total revenue passenger kilometers or RPKs) rose by 7.8% year-o-year (y-o-y), according to the International Air Transport Association (IATA).

In a statement yesterday, IATA said this was up from 6.0% y-o-y growth recorded in both May and April.

It said June capacity (available seat kilometers or ASKs) increased by 6.5%, and load factor rose 1.0 percentage point to 82.8%.

IATA said the first six months of 2018 produced demand growth of 7.0%, a strong performance, but down from 8.3% growth recorded in the first half of 2017.

IATA ditector general Alexandre de Juniac said the first half of 2018 concluded with another month of above-trend demand growth, which is a good indicator for the peak summer travel season in the northern hemisphere.

“But the looming prospect of a global trade war is casting a long shadow.

“Additionally, rising cost inputs—fuel prices have soared by approximately 60% over the past year—are reducing the stimulus of lower fares,” he said.