Published on Tuesday, August 15, 2017

Air passenger growth fastest for 12 years

Airlines have witnessed the biggest growth in passenger traffic since 2005 and are flying with close to a record number of filled seats, according to latest data from the International Air Transport Association (IATA).

Its latest financial monitor revealed global passenger volumes shot up 7.9% during the first half of the year compared with the same period of 2016, which it said was driven by a brighter global economic backdrop and lower airfares.

IATA also revealed that airline financial results during the second quarter were 'more robust' than earlier in the year, suggesting that the squeeze on profit margins due to higher costs and weak yields had peaked during the first quarter.

Taking a sample of 24 international airlines, IATA found that post-tax profit had risen from US$5,787 million during the second quarter of 2016 to $6,408 million during the same period this year.

Yields, which had been falling since 2013, started to rise slightly in July, which, said IATA, was helping to underpin investors' confidence about airline financial performance over the year ahead.

The growth of premium traffic has been strong in some markets, notably across the Pacific and within Asia, but on other routes - particularly between Europe and the Middle East - it has been weaker.

Similarly, premium airfares have held up better than economy on some routes, notably the North Atlantic - but have lagged on other routes, including between Europe and Asia.

Story Image

Your Comments

, be the first to post a comment.
Your email:

Email other comments made to this story

NOTE: Comments are subject to admin approval before being posted.
Mole Poll
Rising cost of fuel: Will airfares rise this summer?
yes 54.13 %
no 45.87 %

Thank you for your vote

Move scroll bar (above) left to right for more videos!

Sponsored features

Falcon Charter Bus Expands to Nine New Southeast Locations

New locations include Panama City, Tampa, Ft. Lauderdale, and Atlanta. According to Director of Operations Johnell Gibson, the company intends to expand into more states within the next year.