The International Air Transport Association (IATA) released its November traffic results that showed year-on-year international passenger traffic growth recovered to 6.7%, the highest growth rate recorded since…
The International Air Transport Association (IATA) released its November traffic results that showed year-on-year international passenger traffic growth recovered to 6.7%, the highest growth rate recorded since May. Year to date, passenger traffic is up by 5.8%. The average passenger load factor remained strong at 73.9% in November and is at 76.1% year-to-date.
“While year-to-date traffic growth is slower than the buoyant rates seen in 2004 and 2005, it is in line with the long term industry average growth rate and has been a key factor behind the industry’s improving bottom line,” said Giovanni Bisignani, Director General and CEO of IATA.
The Middle East remains the fastest growing region posting an increase of 18.3% in passenger traffic in November. However, for the second consecutive month the rise in capacity (20%) outstripped demand in that region. Africa recorded a 7.5% increase followed by North America (7%), Europe (6.1%), Asia Pacific (5.6%) and Latin America (-2.4%).
“A positive revenue environment helped the industry reduce losses to just $0.5 billion in 2006,” said Bisignani. “We expect traffic growth to slow in 2007. Airlines must continue to keep load factors high by carefully managing capacity and by finding further efficiency gains to achieve the $2.5 billion industry profit that we are projecting for 2007.”
Passenger Traffic Recovers to Reach Six Month High
| November 2006 over November 2005 | RPK Growth | ASK Growth | PLF |
| Africa | 7.5% | 6.4% | 67.0 |
| Asia/Pacific | 5.6% | 2.9% | 73.7 |
| Europe | 6.1% | 5.7% | 74.0 |
| Latin America | -2.4% | -3.1% | 72.1 |
| Middle East | 18.3% | 20.1% | 70.4 |
| North America | 7.0% | 5.5% | 77.8 |
| Industry | 6.7% | 5.5% | 73.9 |
| Jan-Nov 2006 over Jan-Nov 2005 | RPK Growth | ASK Growth | PLF |
| Africa | 8.5% | 8.8% | 68.3 |
| Asia/Pacific | 5.2% | 2.8% | 74.6 |
| Europe | 5.3% | 4.5% | 77.2 |
| Latin America | -2.4% | -3.0% | 73.1 |
| Middle East | 15.1% | 15.2% | 73.3 |
| North America | 5.7% | 4.7% | 80.3 |
| Industry | 5.8% | 4.6% | 76.1 |
Explanation of measurements:
- RPK: Revenue Passenger Kilometres measures actual passenger traffic
- ASK: Available Seat Kilometres measures available passenger capacity
- PLF: Passenger Load Factor is % of ASKs used. In comparison of 2006 to 2005, PLF indicates point differential between the periods compared
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
