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Global airline growth driven by domestic travel, reveals Iata

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Global passenger traffic results for November show a continuation of the healthy demand trend of recent months, latest Iata figures show.

Total revenue passenger kilometers rose 6% year on year, which was ahead of the 5.7% annual growth recorded in October as well as the 10-year average growth rate of 5.6%.

Capacity in November expanded by 5.4%, leading to a 0.5 percentage point rise in the load factor to 76.7%.

The growth was driven mainly by domestic travel which saw a 6.9% increase in demand over the previous November.

Chinese domestic travel, which rose 15.4%, was the main contributor to the growth.

However, international travel saw a slight deceleration in growth towards the end of the year, Iata said.

Director general and chief executive Tony Tyler said: “November demand was healthy, but the overall picture is mixed.

“For example, strong traffic performance within China and India has not carried over into international demand for Asia-Pacific carriers.

“And while lower oil prices should be positive for economic activity, softening business confidence is having a dampening effect on international travel.”

Iata forecasts 2015 industry earnings of $25 billion in 2015 on revenues of $783 billion, representing a margin of just 3.2% or around $7 per passenger.

“Nonetheless, the industry is investing to improve the passenger experience,” said Tyler.

“This year we expect to see some implementation of the New Distribution Capability, giving travellers the ability to view and purchase all of an airline’s products and services wherever they shop for air travel.

“And more passengers will have access to fast travel options such as self-boarding and self-tagging of luggage that offer convenience and time-savings and give them greater control over their journey.”

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