June capacity, measured in available seat kilometres, increased by 6.5% and load factor rose 1 percentage point to 82.8%.
The first six months of 2018 produced demand growth of 7%, a strong performance but down from 8.3% growth recorded in the first half of 2017.
“The first half of 2018 concluded with another month of above-trend demand growth, which is a good indicator for the peak summer travel season in the northern hemisphere. But the looming prospect of a global trade war is casting a long shadow,” said Alexandre de Juniac, IATA Director General and CEO.
“Additionally, rising cost inputs—fuel prices have soared by approximately 60% over the past year—are reducing the stimulus of lower fares,” de Juniac went on to say.
June international passenger demand increased 7.7% compared to June 2017. All regions recorded growth, led by airlines in the Middle East and Africa. Capacity climbed 5.9%, and load factor increased 1.4 percentage points to 61.9%.
- Asia-Pacific airlines’ June traffic rose 9.5% compared to the year-ago period, up from 7.7% growth recorded in May year-over-year.
- Middle Eastern carriers posted an 11% demand increase in June compared to the same month last year. This sharp turnaround from the flat traffic growth in May reflected in part the timing of Ramadan between the two years.
- European carriers saw traffic rise 6.1% compared to June 2017, down slightly from a 6.3% year-over-year increase recorded in May.
- North American airlines’ demand went up 5.9% compared to June a year ago, an improvement from 5% growth recorded in May.
- Latin American airlines experienced a 5.6% rise in traffic compared to the same month last year. This was down by 7.9% year-over-year growth in May.
- African airlines’ traffic jumped 10.9% in June, up significantly from just 2.1% growth in May.
Demand for domestic travel climbed 7.9% in June compared to June 2017, up from the 6.7% annual growth experienced in May. June capacity increased 7.5%, and load factor edged up 0.3 percentage point to 84.5%.