African Airlines Record 7.4% Growth in 2016

The International Air Transport Association (IATA) announced full-year global passenger traffic results for 2016 showing demand (revenue passenger kilometers or RPKs) rose 6.3% compared to 2015 (or 6.0% if adjusted for the leap year).

This strong performance was well ahead of the ten-year average annual growth rate of 5.5%. Capacity rose 6.2% (unadjusted) compared to 2015, pushing the load factor up 0.1 percentage points to a record full-year average high of 80.5%.

A particularly strong performance was reported for December with an 8.8% rise in demand outstripping 6.6% capacity growth.

“Air travel was a good news story in 2016. Connectivity increased with the establishment of more than 700 new routes. And a $44 fall in average return fares helped to make air travel even more accessible. As a result, a record 3.7 billion passengers flew safely to their destination. Demand for air travel is still expanding. The challenge for governments is to work with the industry to meet that demand with infrastructure that can accommodate the growth, regulation that facilitates growth and taxes that don’t choke growth. If we can achieve that, there is plenty of potential for a safe, secure and sustainable aviation industry to create more jobs and increase prosperity,” said Alexandre de Juniac, IATA’s Director General and CEO.

December 2016
(% year-on-year)
World share¹

RPK

ASK

PLF
(%-pt)²         
PLF
(level)³
Total Market 100.0% 8.8% 6.6% 1.6% 80.6%
Africa 2.2% 5.8% 5.3% 0.3% 71.6%
Asia Pacific 32.9% 11.2% 8.0% 2.3% 80.8%
Europe 26.4% 10.7% 7.2% 2.5% 80.6%
Latin America 5.2% 5.0% 2.8% 1.7% 81.2%
Middle East 9.6% 12.9% 11.6% 0.9% 77.4%
North America 23.6% 3.1% 3.0% 0.1% 83.0%

¹% of industry RPKs in 2016   ²Year-on-year change in load factor   ³Load factor level

 

International Passenger Markets 
International passenger traffic rose 6.7% in 2016 compared to 2015. Capacity rose 6.9% and load factor fell 0.2 percentage points to 79.6%. All regions recorded year-over-year increases in demand.

  • Asia Pacific carriersrecorded a demand increase of 8.3% compared to 2015, which was the second-fastest increase among the regions. This pace is considerably ahead of the five-year growth average of 6.9%. Capacity rose 7.7%, pushing up the load factor 0.4 percentage points to 78.6%.
  • European carriers’ international traffic climbed 4.8% in 2016. Capacity rose 5.0% and despite a decline of 0.1 percentage points to 82.8%, the load factor remains the highest among the regions. European carriers particularly benefitted from an improvement in the second half of the year—passenger volumes have been increasing at an average of 15% year-over-year since June, easily compensating for a slight decline over the first six months of 2016.
  • North American airlinessaw demand rise 2.6% in 2016. Most of the growth occurred in the second quarter, and traffic has been strongest on Pacific routes. The North Atlantic, by contrast, has been fairly flat. Capacity rose 3.3%, reducing the load factor by 0.5 percentage points to 81.3%.
  • Middle East carriershad the strongest regional annual traffic growth for the fifth year in a row. RPKs expanded 11.8%, consolidating the region’s position as the third-largest market for international passengers. Capacity growth (13.7%) continued to outstrip demand, with the result that the load factor fell 1.3 percentage points to 74.7%.
  • Latin American airlines’traffic rose 7.4% in 2016. Capacity rose 4.8% and load factor strengthened by 1.9 percentage points to 81.3%. International traffic from Latin America remains very healthy despite some economic and political uncertainty in the region’s largest market, Brazil.

African airlines had their best growth performance since 2012, up 7.4%. Growth is being underpinned by strong demand on routes to/from Asia and the Middle East. Capacity exactly matched demand, with the result that the load factor remained flat at 67.7%.

spot_img
spot_img
spot_img
spot_img
spot_img

Hot this week

DataPro: Beyond the Balance Sheet: A Thorough Approach to Ratings

“In today’s complex financial world, your creditworthiness is your...

NAICOM Pledges Support for Lagos State Building Insurance Scheme

Keynote Address by Mr. Olusegun Ayo Omosehin, Commissioner for...

Nigeria’s $2bn Renewable Energy Investment Yields Only 76,000 Jobs, REA Flags Local Capacity Gap

Dr. Abba Aliyu, Managing Director of the Rural Electrification...

Ecobank Nigeria Launches Scaling Up Podcast to Champion African Entrepreneurship, Business Growth

Ecobank Nigeria has launched Scaling Up!!!, its flagship business...

DataPro Unveils Date, Registration for 6th International Rating Webinar

The anticipation is already building for the 6th Edition of the...

Topics

NCC Donates Four CBT Centres to JAMB

In order to augment facilities for smooth conduct of Computer Based Tests (CBT) by the Joint Admission and Matriculation Board (JAMB), the Nigerian Communications Commission (NCC) has built and donated four of such centres to the examination board. This was disclosed recently by Acting Executive Vice Chairman (EVC), Prof. Umar Danbatta, when JAMB officials paid him a courtesy visit in Abuja. The four centers are located in Kano, Niger, Bayelsa and Oyo states. The centres are equipped with computers, printers, other accessories and Internet connectivity.

African Alliance Files Lawsuit against NAICOM over Dissolution of Board, Management

African Alliance Insurance Plc has filed a lawsuit against...

NCC: ‘No Correlation Between 5G & COVID-19’

    Prof. Umar Danbatta Executive Vice-Chairman Nigerian Communications Commission In view of the...

NAICOM to Engage Insurers on 10-Year CEO Tenure Code

The National Insurance Commission (NAICOM) says it will engage...

CIIN Laments Negative Impact of Forex Regime

The Chartered Insurance Institute of Nigeria says the...

April CPI Prints at 12.5%… Persistent Dis-inflationary Trend a Compelling Case for MPR Cut

The National Bureau of Statistics (NBS) released Consumer Price...

Nigeria’s Decade of Gas Will Support Global Energy Security – NLNG MD

(L-R) Nnamdi Anowi, GM, Production; Ms. Kadri Simson, EU...
spot_img

Related Articles

Popular Categories

spot_imgspot_img