The Business Times

Air passenger capacity up more than demand in February

Published Thu, Apr 7, 2016 · 10:37 AM

[BERLIN] Global demand for air travel rose 8.6 per cent in February, building on a 7.1 per cent gain in January, but the amount of seats available rose faster than that for the first time in months, according to the International Air Transport Association.

Capacity measured in available seat kilometres rose 9.6 per cent, outstripping demand and meaning load factor - a measure of how full planes are - dropped 0.7 per centage points to 77.8 per cent, IATA said in its monthly traffic update.

Overcapacity can lead to more pressure on prices as well as profits, as currently being seen in the air freight market.

"February was the first month since the middle of 2015 in which capacity growth exceeded demand ... It is unclear whether this signals the start of a generalized downward trend in load factor, but it bears watching," IATA Director General Tony Tyler said in a statement.


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