Passenger demand continues to soar for airlines through August

Airlines reported an easing in global seasonally-adjusted traffic since the beginning of the year, but demand still climbed 7.2% in August compared to the same time twelve months earlier.

August capacity, measured by available seat kilometres (ASKs) increased 6.3% over the month, while load factor climbed 0.7 percentage points to 84.5%, just below the monthly record set in 2015.

The International Air Transport Association (IATA), which represents some 275 airlines that make up around 83% of worldwide air traffic, said 2017 is on course to be another year of strong traffic growth thanks to the strong summer traffic season in the northern hemisphere.

"However, some important demand drivers are easing, particularly lower fares. As we head towards the end of the year we still expect growth to continue, but potentially at a slower pace," said Alexandre de Juniac, IATA's director general and chief executive.

International passenger demand saw 1 7% year-on-year increase in all regions recorded an increase, with Latin America leading the pack with a 9.3% uptick in demand thanks to Brazil's gradually recovering economy.

Domestic travel grew 7.6% in August at the same time in 2016, just above July's 7.5% growth rate.

Capacity rose 6.9% and load factor increased 0.6 points to 84.5%.

De Juniac added that managing the industry's carbon footprint was a major challenge, but that members were committed to carbon-neutral growth from 2020 and to cutting emissions to half 2005 levels by 2050. "We will deliver on these commitments."

He added that the immediate challenge is to finalise details and preparations for the Carbon-Offsetting and Reduction Scheme for International Aviation.

"But we must also intensify our partnership with governments to tackle other key contributors to meeting our commitments. Modernizing air traffic management and the commercialization of sustainable aviation fuels are at the top of the list."