Strong RPK growth at present is being driven by a supportive economic backdrop, IATA said; however, it added that the moderation in business confidence seen in March suggests that the pace of global economic growth is slowing. “If sustained, this would be consistent with a corresponding slowdown in annual passenger traffic growth in the second quarter of 2018,” the report stated.
Year-on-year growth in domestic India RPKs stayed in double-digit territory for the forty-third consecutive month, while Latin American airlines saw the greatest increase for the third month in a row, at 11.8%.
March international passenger demand rose 10.6% compared to March 2017, which was up from 7.4% year-over-year growth recorded in February. All regions showed strong increases. Total capacity climbed 6.6%, and load factor improved 2.9 percentage points to 81.5%.
"Demand for air travel remains strong, supported by the comparatively healthy economic backdrop and business confidence levels. But rising cost inputs—particularly fuel prices—suggest that any demand boosts from lower fares will moderate going into the second quarter," commented IATA’s Director General and CEO, Alexandre de Juniac.
