Strong Global Air Traffic Growth in November

Global demand for air travel rose 7.6% in November, the strongest rate for nine months, with European traffic rebounding, the International Air Transport Association reported last week.

Global capacity measured in available seat kilometers rose slower than demand at 6.5%, meaning load factors—a measure of how full planes are—increased 0.8% age points to a November record high of 78.9%, IATA said in its monthly traffic update, Reuters reported.

European carriers saw demand rise 8.3% in November, suggesting that the region is recovering from disruption caused by attacks and political upheavals, IATA said.

“Stronger demand for air travel reflects–and is supporting–a pickup in the global economic cycle,” Alexandre de Juniac, IATA’s director general and CEO, said in a statement.

“As the stimulus effect of lower oil prices recedes in the rear view mirror, the strength of the economic cycle will play a key role in the pace of demand growth in 2017.”

IATA has forecast airlines’ profitability may fall in 2017 after peaking this year.

“The threat of terrorism, questions over the durability of the economic upswing, rising oil prices and increasing protectionist rhetoric are among the concerns,” de Juniac said.

But he is hopeful that accessibility and competitive airfares will help encourage more people to travel in 2017.

“Travel has never been more accessible, with great fares, many options and more destinations. Nevertheless, uncertainty lies ahead,” de Juniac said.

“The industry has reshaped itself and strengthened its resilience to shocks. We should see another solid year of collective profitability for the airlines in 2017. But we must be vigilant.”