Nigeria’s Weakness Slows Africa Passenger Growth in Jan

The International Air Transport Association (IATA) announced global passenger traffic results for January 2017 showing demand (revenue passenger kilometers or RPKs) rose 9.6% compared to January 2016. This was the strongest increase in more than five years.

Results were positively affected by traffic associated with the Lunar New Year celebrations, which occurred in January this year, compared to February in 2016. IATA estimates the holiday-related travel contributed up to one-half a percentage point in extra demand growth. January capacity rose 8.0%, and load factor climbed 1.2 percentage points to 80.2%.

“2017 is off to a very strong start, with demand at levels not seen since 2011. This is supported by the upturn in the global economic cycle and a return to a more normal environment after the terrorism and political ‘shock’ events seen in early 2016,” said Alexandre de Juniac, IATA’s Director General and CEO.

January 2017
(% year-on-year)
World share¹

RPK

ASK

PLF
(%-pt)²         
PLF
(level)³
Total Market 100.0% 9.6% 8.0% 1.2% 80.2%
Africa 2.2% 5.2% 3.9% 0.9% 70.1%
Asia Pacific 32.9% 14.3% 11.1% 2.2% 81.5%
Europe 26.4% 8.4% 7.0% 1.0% 79.4%
Latin America 5.2% 4.9% 3.7% 0.9% 83.2%
Middle East 9.6% 13.5% 11.2% 1.6% 79.4%
North America 23.7% 3.4% 4.1% -0.5% 80.0%

¹% of industry RPKs in 2016   ²Year-on-year change in load factor   ³Load factor level

 

International Passenger Markets 
January international passenger traffic surged 9.3% compared to the year-ago period. Capacity rose 7.5% and load factor climbed 1.3 percentage point to 80.3%. All regions recorded year-over-year increases in demand led by the Middle East and Asia Pacific.

Asia Pacific carriers recorded an increase of 10.9% compared to January 2016, helped by the impact of Lunar New Year-related travel and solid growth on routes within Asia. Capacity rose 8.9%, pushing up load factor 1.5 percentage points to 81.4%.
European carriers’ international traffic climbed 8.3% in January compared to the year-ago period against a backdrop of moderate momentum in the Eurozone economy. Capacity rose 6.7% and load factor was up 1.2 percentage points to 80.3%.
Middle East carriers had the strongest year-over-year demand growth in January at 14.4%. Capacity climbed 11.4% and load factor rose against the year-ago period for a third consecutive month, up 2.1 percentage points to 79.8%.
North American airlines had the slowest demand growth, with traffic rising 3.2% in January, compared to a year ago. Capacity climbed 3.1%, and load factor was flat at 80.3%. Traffic on the transpacific market has continued to trend upwards but North Atlantic traffic growth has weakened since the middle of 2016, reflecting softer demand on UK-US routes.
Latin American airlines’ traffic climbed 8.2% in January. Capacity rose 5.7% and load factor increased 1.9 percentage points to 83.7%, highest among the regions. Robust international demand within South America is offsetting weaker demand to North America.
African airlines saw January traffic rise 5.6% compared to January 2016. This reflects a recovery on the key routes to/from Europe, despite continuing weakness in South Africa and Nigeria. With capacity up 4.5%, load factor rose 0.7 percentage point to 69.9%.

Hot this week

Harmony Group CEO, Olusegun Adebayo, Bets on Lekki Growth with Launch of New Housing Projects

As demand for quality housing continues to rise across...

Mother Nature Is Speaking. Are We Listening?

Over the past few days, Lagos has witnessed severe...

Lagos Flooding Sparks Fresh Interest in Safer Property Investments as Experts Set for Three P Conference

The widespread flooding that recently disrupted homes, businesses and...

Nigeria’s Nuclear Ambitions Boosted as Akkuyu NPP Unit 1 Construction is Completed

Nigeria is steadily advancing toward the development of its...

NHIA, ‎PTAD, Universal Insurance Sponsor NAIPE 2026 AGM

‎The National Health Insurance Authority (NHIA),‎ Pension Transitional Arrangement...

Topics

Access Bank GMD, Wigwe, to Lead Discussions at The Economist Nigeria Summit 2016

Mr. Herbet Wigwe, Group Managing Director/CEO, Access Bank Plc, will lead economic and business discussions at the forthcoming The Economist Nigeria Summit scheduled for early 2016. The Economist said: “Nine months on from HE President Buhari taking office, our Nigeria Summit 2016 takes place at the opportune time—bringing key government ministries, industry and business leaders as well as representatives of Nigerian civil society; together with international investors, economists and academics to discuss and debate what the future holds for Nigeria and how the country can take its place among the world’s top emerging markets.”

Making Sense of a Manual ‘Digital’ Directive

By Elvis Eromosele The COVID19 pandemic is not letting up....

NAICOM Announces Promotion of 5 Staff as Directors

The Governing Board of the National Insurance Commission, at...

Access, GT, UBA, FCMB, Fidelity Bank Fined N1.4bn by CBN

Herbert Wigwe Group Managing Director/CEO Access Bank Plc Access Bank Plc, UBA...

Stanbic IBTC Pension Managers Inspires Women to Shape the Future

According to a United Nations Women publication, although women's...

Ecobank Nigeria Virtual Trade Conference Set for Sept 22

Ecobank Nigeria, a member of the pan African banking Group has concluded...

Non-Performing Loans: Are Banks Innocent Victims?

The 322 Bankers’ Committee Meeting ended recently in Abuja with a resounding resolution to publish the names of bank debtors on August 1, 2015 under the so-called ‘Name & Shame’ initiative. The objective of this measure we were told is to recover the estimated N400 billion listed as outstanding bad debt in the banking sector.Even before the resolution of the Bankers’ Committee, a number of angry banks had already published such list of debtors in selected national dailies. Unity Bank Plc is one of them.

Equities Extend Losses to Third Consecutive Session… NSE ASI down 1.5%

At the close of trade today, the equities market...