Iata reports 5% drop in air fares in first eight months of 2015

Iata reports 5% drop in air fares in first eight months of 2015

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Cheap fares have spurred global air travel growth so far this year, latest data from Iata reveals.

The airline trade body reported a 5% fall in average fares for the first eight months of the year.

This supported about three percentage points of the rise in passenger traffic in the year to date.

Newly-released figures for October show continued strong demand growth for both domestic and international traffic against the same month last year.

Total revenue passenger kilometres rose 7.5%, which was in line with the 7.4% expansion seen in September.

October capacity increased by 5.7%, and load factor rose 1.4 percentage points to 80.5%.

“Growth in air travel has been stimulated by lower fares, particularly for leisure travel,” Iata said.

The organisation’s director general and chief executive, Tony Tyler, said: “The air travel story is generally a good one.

“There are some weak spots. For example the Brazilian air transport sector is caught in perfect storm of a deepening recession, high costs and a weak currency.

“In most parts of the world we see strong demand for travel exceeding the growth in capacity. Load factors are averaging over 80% and consumers are the big winners with fares trending downwards.”

He added: “The end of the year is a festive time around the world. But this year’s celebrations will be juxtaposed against the somber reality of recent terrorist activity in the Middle East and Europe. This, by all indications, also includes the downing of Metrojet 9268 with the loss of all aboard.

“Acts of terror, whether they occur on a city street or at 30,000 feet, will not get the better of us, or succeed in limiting the possibilities of our world. The most important response to acts and threats of terrorism is to show that we will not let the terrorists change our lives.

“That extends to aviation and tourism. Over 100,000 flights will bring a million people together today because of the efforts of 8.7 million people—aviation professionals.

“These efforts will create opportunities for business and leisure and for greater understanding among people and cultures. By doing so, flying is a force for good in our world. As we look to 2016 and beyond it’s a reality that should continue to inspire us all.”

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