Iata reports strongest passenger growth for nine months

Iata reports strongest passenger growth for nine months

Global airline passenger demand in November showed the strongest growth in nine months but uncertainty lies ahead, according to trade body Iata.

Total revenue passenger kilometers rose 7.6% compared to November 2015.

Capacity increased by 6.5%, and load factor rose 0.8 percentage points to 78.9%.

Iata director general and chief executive Alexandre de Juniac said: “Stronger demand for air travel reflects – and is supporting – a pick-up in the global economic cycle.

“As the stimulus effect of lower oil prices recedes in the rear view mirror, the strength of the economic cycle will play a key role in the pace of demand growth in 2017.”

He added: “The airline industry continues to deliver strong results. In 2017, for a third consecutive year, the industry’s return on invested capital will exceed the cost of capital.

“Passengers benefit from the industry’s success. Travel has never been more accessible – with great fares, many options and more destinations.

“Nevertheless uncertainty lies ahead. The threat of terrorism, questions over the durability of the economic upswing, rising oil prices and increasing protectionist rhetoric are among the concerns.

“The industry has reshaped itself and strengthened its resilience to shocks. We should see another solid year of collective profitability for the airlines in 2017. But we must be vigilant.”

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