Global passenger demand growth weakened in July 2019 — IATA

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KUALA LUMPUR (Sept 6): The global passenger demand growth has slowed down in July, with total revenue passenger kilometres rising 3.6 percent year-on-year (y-o-y) compared to 5.1 percent YoY recorded in June, due to weak demand during the period.  

International Air Transport Association (IATA) director-general and chief executive officer Alexandre de Juniac said July’s performance, marked a soft start to the peak passenger demand season.

“Tariffs, trade wars, and uncertainty over Brexit are contributing to a weaker demand environment than we saw in 2018,” he said in a statement today.

All regions according to him, posted traffic increases during the reviewed month, with the monthly capacity available seat kilometres (ASKs) increased 3.2 percent and load factor rose 0.3 percentage point to 85.7 percent, which is a new high for any month.

At the same time the trend of moderate capacity increases is helping to achieve record load factors, he said.

The international passenger demand he said, rose 2.7 percent YoY in July, while capacity climbed 2.4 percent while load factor edged upward 0.2 percentage point to 85.3 percent.

Alexandre said all regions reported growth, led by airlines in Latin America which experienced a 4.1 percent rise in traffic in July.

As for Asia-Pacific airlines, traffic rose 2.7 percent over the year-ago period, a slowdown compared to June’s growth of 3.9 percent, their weakest performance since early 2013.

“Capacity increased 2.4 percent and load factor rose 0.2 percentage point to 82.6 percent.

“US-China and Japan-South Korea trade tensions, as well as political tensions in Hong Kong all, have weighed on business confidence,” he added.