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

SanlamAllianz Nigeria Launches Proud Moments 2.0, Celebrates Achievements Worth Protecting

Riding on the resounding success of its foundational debut,...

Insurance Meets Tech 5.0 Now Holds on November 20, 2026

Insurance Meets Tech (IMT), Nigeria’s leading platform for conversations...

Sanwo-Olu, Lai Mohammed, Gbenga Daniel to Discuss 2027 Elections, Insecurity at 7th Freedom Online Lecture

Challenges facing the economy and insecurity, especially associated with...

AXA Mansard Intensifies Hepatitis Awareness with Free Community Screening

As part of efforts to promote preventive healthcare and...

Heirs Insurance Group Celebrates 1,000 Retirees at Lagos Meeting

Heirs Insurance Group, Nigeria's fastest-growing insurance group, reaffirmed its...

Topics

NIGERIA BUILD EXPO 2019 Set for June 27

Nigeria Build Expo: 4 TH International Construction and Building...

MTN Nigeria Launches 4G+ for Superior Customer Experience

MTN Nigeria Communications Plc has launched 4G+ in Lagos,...

Banks, Telcos Disagreement Hindering Mobile Money Services

The inability of banks and telecom operators to agree on modalities for mobile money operations is hindering the potential of such transactions in Nigeria, compared to the acclaimed success of M-pesa in Kenya. Mobile money transactions need legislations and approvals from both the Central Bank of Nigeria (CBN) which regulates the banking sector and the Nigerian Communications Commission (NCC) that oversees telecom services in the country. Giving an insight into the success of M-Pesa in Kenya at the Commonwealth Broadband Forum 2015 in Abuja, Mr. Joseph Tiampati Musuni, Principal Secretary, Ministry of Information, Communications and Technology, Kenya, said their country experienced a similar Banks-Telcos disagreement at the outset of mobile money services in Kenya. But he added that the government was able to facilitate an amicable and working arrangement between them to pave way for roll-out of the service.

Dettol Unveils Handwashing “Letter for Life” Campaign

According to the World Health Organization, Diarrhoea disease is the...

NAFDAC: NIVEA Black & White Roll-On Manufactured in Nigeria is Safe

Nigeria’s food and drugs regulatory body, the National Agency...

Stanbic IBTC Charts Course for Real Estate Dev in Nigeria

Stanbic IBTC Asset Management, a subsidiary of Stanbic IBTC...

N1tr Fine: NCC Issues November 16 Deadline to MTN

The Nigerian Communications Commission (NCC) says it has issued a November 16, 2015 deadline to MTN Nigeria to pay the N1 trillion penalty it imposed on the mobile operator for failing to disconnect 5.2 million unregistered SIM cards on its network. Mr. Tony Ojobo, Director, Public Affairs of NCC told the AFP: “The deadline set for the payment of the fine is November 16.” “The key issue is if MTN breached the law or not. Certainly, there was a breach. And if there is a breach, we will apply the law.”

Stanbic IBTC Named in World’s Top 100 Social Media Savvy Banks

Stanbic IBTC Bank Plc has been named amongst the...
spot_img

Related Articles

Popular Categories

spot_imgspot_img