IATA: Global traffic demand slows on security and regional economic weakness

IATA reported (31-May-2016) Apr-2016 international passenger traffic demand growth of 4.8% year-on-year was the "slowest pace in two years". Global capacity climbed 5.6%, sending average load factors down 0.6 percentage points to 77.8%. Regional highlights:

• Asia Pacific: traffic +6.4%, with slower economic growth in many of the region's economies at least partly offset by an increase in direct airport connections that has helped to stimulate demand. Capacity rose 6.8% and load factor dipped 0.3 ppts to 77.3%;
• Europe: Demand up just 1.8% in Apr-2016 (Mar-2016: +6%), reflecting the impact of the Brussels terror attacks. Capacity climbed 2.4% and load factor slipped 0.5% ppts 80.2%. Europe maintains the highest average load factor of any region;
• Middle East: Demand rose 12.7%, the only region to see a double-digit growth. Capacity was up 14.8%, continuing to outstrip growth, sending load factor down 1.4 ppts to 75.6%;
• North America: + 1.1% traffic growth, the smallest increase among regions. Capacity climbed just 0.9%, seeing load factors up 0.1 ppt to 78.3%. The recent downward slide in international traffic growth paused in Apr-2016, although traffic levels remain below July 2015 on a seasonally-adjusted basis;
• Latin America: +3.1% rise in demand, with capacity up +2.9%, edging load factor up 0.1 ppts to 77.7%. The upward trend in international traffic growth that characterised Africa in 2015 has paused, while the downward trend in domestic traffic for the region's carriers has accelerated;
• Africa: +9.9% demand in Apr-2016, behind capacity growth of 11.1%, sending load factors slipping 0.7 ppts to 66.3%, lowest among regions. The continued turnaround of the carriers coincides with expansion of long-haul networks by the region's airlines. [more - original PR]