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IATA Air Passenger Market Analysis December 2017
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IATA Air Passenger Market Analysis December 2017

According to the global passenger traffic results for 2017 by IATA, global revenue passenger kilometres (RPKs) increased by 7.6% y-o-y in 2017 as a whole "“ another year of above-trend growth, well ahead of the ten-year average pace (5.5%). The industry-wide load factor increased by 0.9% in 2017, taking it to a record calendar – year high of 81.4%. India posted the fastest domestic RPK growth for the 3rd year in a row, driven by economic and network expansion. TravelBiz Monitor presents highlights.

The International Air Transport Association (IATA) announced global passenger traffic results for 2017 showing that demand (revenue passenger kilometers or RPKs) for the year ended 31 December rose 7.6% compared to 2016. This was well above the 10-year average annual growth rate of 5.5%. While the rate of demand growth slowed to 6.2% in December 2017, compared to December 2016, this largely was owing to less favorable comparisons to the even stronger growth trend seen in the year-ago period. Full year 2017 capacity rose 6.3%, and load factor climbed 0.9 percentage point to a record calendar-year high of 81.4%.

"2017 got off to a very strong start and largely stayed that way throughout the year, sustained by a broad-based pick-up in economic conditions. While the underlying economic outlook remains supportive in 2018, rising cost inputs, most notably fuel, suggest we are unlikely to see the same degree of demand stimulation from lower fares that occurred in the first part of 2017," said Alexandre de Juniac, Director General and CEO, IATA.

International Passenger Markets
2017 international passenger traffic soared 7.9% compared to 2016. Capacity rose 6.4% and load factor climbed 1.1 percentage points to 80.6%. All regions recorded year-over-year increases in demand, led by the Asia-Pacific and Latin America regions.

Domestic Passenger Markets
Domestic air travel climbed 7.0% last year. All markets showed annual growth led by India, China, and Russia, albeit with wide variation. Capacity increased 6.2% and load factor was 83.0%, up 0.7 percentage point compared to 2016…

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