All regions recorded year-over-year increases in passenger traffic demand in 2017 led by Asia-Pacific and Latin America according to International Air Transport Association (IATA) based in Geneva.
The most recent results of Global passenger traffic showing that demand in 2017 ended 31 December rose 7.6% compared to 2016. IATA announced that full year 2017 capacity rose 6.3%, and load factor climbed 0.9 percentage point to a record calendar-year high of 81.4%.
Alexandre de Juniac, IATA’s Director General and CEO cited by Travel Daily News, the news portal for the London International Travel Trade Market said that 2017 got off to a very strong start and largely stayed that way throughout the year, sustained by a broad-based pick-up in economic conditions.
According to Juniac while the underlying economic outlook remains supportive in 2018, rising cost inputs, most notably fuel, suggest we are unlikely to see the same degree of demand stimulation from lower fares that occurred in the first part of 2017″.
On a global scale, passenger air travel is expected to maintain positive growth rates up to 2030, despite a number of challenges faced by the industry, experts said.
Among the most important challenges is that Airlines around the world are struggling with high jet fuel prices and sluggish economic growth.
Experts added that aviation demand is set to be fuelled by the rising affluence of the middle classes in emerging markets. Consequently, the air traffic industry is forecast to grow most significantly in Latin America and Africa in 2018.