IATA: Global passenger traffic slows to 2.5% growth, as coronavirus impact begins to be felt

IATA reported (04-Mar-2020) the following highlights for international passenger traffic for Jan-2020:

• International passenger markets: Jan-2020 international passenger demand rose 2.5% year-on-year, down from 3.7% in Dec-2019. With the exception of Latin America, all regions recorded increases, led by airlines in Africa and the Middle East that saw minimal impact from the coronavirus outbreak in Jan-2020. Capacity climbed 0.9%, and load factor rose 1.2pp to 81.1%;
• Asia Pacific: Traffic climbed 2.5%, the slowest outcome since early 2013 and a decline from the 3.9% increase in De-2019. Softer GDP growth in several of the region's key economies was compounded by coronavirus impacts on the international China market. Capacity rose 3.0% and load factor slid 0.4pp to 81.6%;
• Europe; Traffic rose 1.6%, down from 2.7% in Dec-2019. Results were impacted by slumping GDP growth in leading economies during the 4Q2019 plus flight cancellations related to coronavirus in late Jan-2019. Capacity fell 1.0%, and load factor lifted 2.1pp to 82.7%;
• Middle East: Traffic rose 5.4%, the fourth consecutive month of solid demand growth, reflecting strong performance from larger Europe-Middle East and Middle East-Asia routes, which were not significantly impacted by route cancellations related to coronavirus at that time. Capacity increased just 0.5%, with load factor jumping 3.6pp to 78.3%;
• North America: Demand rose 2.9%. a slowdown from the 5.2% growth recorded in Dec-2019, although there were no significant flight cancellations to Asia in Jan-2020. Capacity climbed 1.6%, and load factor grew by 1.0pp to 81.7%;
• Latin America: 3.7% demand drop, which was a further deterioration compared to a 1.3% decline in Dec-2019. Traffic for Latin American carriers has now been particularly weak for four consecutive months, reflecting continued social unrest and economic difficulties in a number of countries in the region unrelated to coronavirus. Capacity fell 4.0% and load factor edged up 0.2pp to 82.7%;
• Africa: Traffic climbed 5.3% up slightly from 5.1% growth in Dec-2019. Capacity rose 5.7%, however, and load factor slipped 0.3pp to 70.5%. [more - original PR]