DOHA: The Middle East carriers’ traffic jumped 10.7 percent in March 2018, improving much from the 4.1 percent year-over-year increase recorded in the previous month.
This reflects healthy growth in the market between the Middle East and Asia. Demand also shows signs of stabilisation on Middle East to North America routes, following the disruption caused in the first half of 2017 by the now-lifted ban on large portable electronic devices, as well as a wider impact stemming from the proposed travel restrictions to the US. Capacity increased 4.3 percent, and load factor jumped 4.4 percentage points to 76.7 percent.
The International Air Transport Association’s (IATA) global passenger traffic results for March 2018 showed that demand, measured in revenue passenger kilometers, or RPKs, rose 9.5 percent, compared to the same month a year ago, the fastest pace in 12 months. Capacity, available seat kilometers, or ASKs, grew 6.4 percent and load factor climbed 2.3 percentage points to 82.4 percent, which set a record for the month, following on the record set in February.
All regions except for the Middle East posted record load factors. “Demand for air travel remains strong, supported by the comparatively healthy economic backdrop and business confidence levels. But rising cost inputs—particularly fuel prices— suggest that any demand boosts from lower fares will moderate going into the second quarter,” said Alexandre de Juniac, IATA’s Director General and CEO.
March international passenger demand rose 10.6 percent compared to March 2017, which was up from 7.4 percent year-over-year growth recorded in February. All regions showed strong increases. Total capacity climbed 6.6 percent, and load factor improved 2.9 percentage points to 81.5 percent.
Globally, domestic demand rose 7.8 percent in March, which was a slight deceleration from 8.2 percent growth recorded in February, driven primarily by developments in the US market. Domestic capacity climbed 6.2 percent, and load factor lifted 1.3 percentage points to 84.0 percent. US domestic growth slowed to 4.7 percent in March, compared to 6.1 percent year-over-year growth recorded in February. This had been anticipated and relates more to traffic trends last year than to any specific weakening in the US market.
China’s domestic traffic grew 15 percent in March compared to the year-ago period. This was the strongest pace in five months and is being supported by growth in the services sector.
“The strong first quarter provides healthy momentum heading into the peak travel period in the Northern Hemisphere. Benign economic conditions are supporting—and being supported by— good demand for air travel. It’s a mutually-beneficial effect that smart governments recognize and encourage, by embracing affordable, quality aviation infrastructure and reasonable commercial regulation. But we need to deliver that message every day. The setback to modernizing air traffic management in the US, and a proposal to stop construction of the new airport in Mexico, are reminders of that fact,” said de Juniac.
