IATA reports 3% increase in September passenger demand over August

IATA has reported a 3% increase in passenger demand in September 2019, a 3.0% increase, compared to September 2018, which was a decline from 3.6% year-over-year growth achieved in August, the organization said.

All regions recorded traffic increases, led by airlines in North America. Capacity climbed 2.6%, and load factor edged up 0.3 percentage point to 81.6%.

Asia-Pacific airlines saw September traffic increase 3.6% compared to the year-ago period, an increase over the 3.3% annual growth recorded in August. Despite the uptick, growth remains well below that seen in 2018. This is occurring amid a weaker economic backdrop in some of the region´s key states as well as trade tensions between the US and China and, more recently, between Japan and South Korea. Political unrest in Hong Kong has also contributed to subdued regional demand and led to sharp capacity cuts to/from the hub. Capacity rose 5.0% and load factor slid 1.1 percentage points to 78.2%.

European carriers experienced a 2.9% rise in September traffic, the region´s weakest performance this year and a decline from the 4.2% year-over-year rise recorded in August. In addition to slowing economic activity and faltering business confidence in many of the key European economies, the result was also affected by the demise of a number of airlines, along with pilot strikes. Capacity rose 2.5%, and load factor climbed 0.3 percentage point to 86.9%, which was the highest among regions.

Middle Eastern airlines posted a 1.8% traffic increase in September, which was a slowdown from a 2.9% rise in August. Capacity was up just 0.2%, with load factor climbing 1.2 percentage points to 75.2%. International traffic growth continues to be affected by a mix of structural challenges in some of the region´s large airlines, geopolitical risks and weaker business confidence in some countries.

North American carriers´ international demand climbed 4.3% compared to September 2018, well up from the 2.9% growth recorded in August and the strongest performance among the regions. Capacity rose 1.6%, and load factor accelerated 2.2 percentage points to 83.0%. Demand is being supported by solid consumer spending and continued job creation.
Latin American airlines had a 1.2% demand increase in September compared to a year ago, which was down from 2.3% growth in August. Capacity fell 1.6% and load factor surged 2.3 percentage points to 82.5%. Latin American carriers continue to face several challenges including some weaker economic and business confidence outcomes, political and social unrest in key states, and currency exposure to the strengthening US dollar.

African airlines´ traffic climbed 0.9% in September, a steep fall-off from the 4.1% growth recorded in August. Looking through the recent volatility in the numbers, however, traffic growth for the third quarter of 2019 remains solid at around 3% year-over-year. Capacity rose 2.5%, however, and load factor dipped 1.1 percentage points to 71.7%.

Demand for domestic travel climbed 5.3% in September compared to September 2018, which was an improvement over the 4.7% annual growth recorded in August. Capacity rose 4.7% and load factor increased 0.5 percentage point to 82.3%.

Japanese airlines saw domestic traffic climb 10.1% in September, well up on the 2.0% annual increase recorded in August. However, results are distorted by the weak outcome in September 2018 owing to the disruption caused by Typhoon Jebi.
US airlines´ domestic traffic surged 6.0% in September compared to September 2018, up from 3.9% growth in August year over year. As with Japan, the performance is somewhat exaggerated owing to the softer demand environment experienced in 2018. Nevertheless, the demand environment is robust.