Global passenger traffic up 7.2pc in Oct: IATA

Global passenger traffic up 7.2pc in Oct: IATA

Global passenger traffic up 7.2pc in Oct: IATA

To continue to deliver on our full potential, governments need to raise their game-implementing global standards on security, finding a reasonable level of taxation, delivering smarter regulation and building the cost-efficient infrastructure to accommodate growing demand.

For worldwide traffic, the Asia-Pacific region showed the largest growth in passenger traffic in October, up 10.3% YOY, driven by a solid regional economic backdrop and growing numbers of airport-pairs in operation.

"As expected, the recent severe weather in the Americas region had only a temporary impact on the healthy travel demand we have seen this year, and we remain on course for another year of above-trend growth", said de Juniac.

IATA represents around 275 airlines comprising 83 per cent of global air traffic.

"It is still, however, a tough business, and we are being challenged on the cost front by rising fuel, labour and infrastructure expenses", he said.

A boom in traveller numbers has already led to this year's projected net profit being revised up, after it was forecast at $31.4bn in June.

"Overall unit costs are expected to grow by 4.3 per cent in 2018 [a significant acceleration on the 1.7 per cent increase in 2017]". That part of the world also "remains the only global market not to have grown in annual terms this year".

Slower growth for both passenger, at 6% compared to 7.5% growth in 2017), cargo at 4.5% in 2018 versus 9.3% in 2017 demand. Capacity climbed 9.1%, and load factor slipped 0.3 percentage points to 82.6%.

"Cargo yields are expected to improve by 4% in 2018 (down from the 5% in 2017)".

"Despite the challenges, there is positive momentum heading into 2018". This was down from $1.1bn in 2016. In 1996, there were fewer than 10,000 city-pair connections, defined as scheduled services with more than one flight per week using aircraft carrying more than 20 seats. It is based on data provided by IATA member airlines during October 2017. IATA is a trade body that claims to represent more than 80 percent of air traffic. Cargo revenues will continue to do well in 2018, reaching $59.2bn, up 8.6 per cent from expected 2017 revenues of $54.5bn.

Europe added 4.5 percent more capacity in October.

"We believe industry profitability is on a more sustained path so even in weakened business conditions we think the industry will perform better than it has in the past because of the (load factor) gap", said Pearce, noting that while low oil prices have contributed, the load factor gap has been above breakeven level since before 2015.

A slight decline in the operating margin to 8.1%, down from 8.3% in 2017.

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