Airlines revenue increase per km, finds IATA report

Total traffic outstrips capacity

Airlines revenue  increase per km, finds IATA report

The revenues earned by airlines per kilometre on a international passenger grew by 6.5 per cent last year, while it was 6.3 per cent for domestic services, an International Air Transport Association report has said.

For the international sector, it was fastest pace since 2010 and well above the 10-year average annual growth of 5.5 per cent. “While the economic backdrop was weaker in 2015 compared to the previous year, passenger traffic received a strong boost from lower air fares. After adjusting for distortions from the rise in the US dollar, global airfares in 2015 were approximately five per cent lower than in 2014,” the report said.

Total traffic growth outstripped the rise in capacity and the global load factor reached an all-time high of 80.3 per cent in 2015. The passenger load factor increased for carriers in all regions except the Middle East, where capacity growth exceeded a 10 per cent increase in passenger traffic.

In the domestic market, the report said there was a wide dispersion in performance by market. The Indian and Chinese domestic markets led the way, with both registering impressive annual growth.

“Last year’s very strong performance, against a weaker economic backdrop, confirms the strong demand for aviation connectivity. But even as the appetite for air travel increased, consumers benefited from lower fares compared to 2014,” said IATA’s Director General and CEO Tony Tyler.

“In India’s case, growth accelerated strongly helped by solid economic growth and an 8.3 per cent increase in the average frequency of flights on each route over the year. Notably, the domestic load factor jumped by 6.7 per cent points from 2014 to a record high of 83.2 per cent," it said.

On China it said, while economic growth slowed in 2015, the consumer side of the economy has proved more resilient, and a 7.9 per cent increase in direct network connections has supported ongoing strong air demand growth.

"All told, the market is well placed to withstand the financial market turmoil seen in early-2016," the report said.

The US domestic market was another strong performer in 2015, helped by continued solid economic growth. The 4.9 per ccent increase in domestic traffic was the fastest since 2004. (ENDS)

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