Passenger Demand Continues Strong Growth in May.

The International Air Transport Association (IATA) announced global
passenger traffic results for May showing that demand (measured in revenue passenger
kilometers, or RPKs) rose 6.1% compared to the same month in 2017, which was a slight
pickup from 6.0% year-over-year growth for April 2018. Capacity climbed 5.9% and load factor
rose 0.1 percentage point to 80.1%.
“May was another solid month in terms of demand growth. As had been expected, we saw
some moderation, as rising airline costs are reducing the stimulus from lower airfares. In
particular, jet fuel prices are expected to be up nearly 26% this year compared to 2017.
Nevertheless, the record load factor for the month signifies that demand for air connectivity is
strong,” said Alexandre de Juniac, IATA’s Director General and CEO.
Air passenger market detail – May 2018

RPK1ASK1PLF (%-pt)2PLF (level)3RPK1ASK1PLF (%-pt)2PLF (level)3
TOTAL MARKET100.0%6.1%5.9%0.1%80.1%6.8%6.0%0.6%81.0%
Africa2.2%-0.8%-0.9%0.0%66.8%2.3%1.2%0.7%70.1%
Asia Pacific33.7%8.7%8.6%0.1%79.6%9.4%8.6%0.6%81.4%
Europe26.5%6.0%5.0%0.8%83.0%6.5%5.1%1.1%82.6%
Latin America5.2%6.1%6.2%-0.1%79.8%6.9%6.1%0.6%81.6%
Middle East9.5%0.5%3.3%-1.9%67.5%3.8%3.8%0.0%74.2%
North America23.0%5.2%4.9%0.3%84.4%5.0%4.6%0.3%82.7%
International63.8%5.8%5.4%0.3%78.7%6.5%5.6%0.7%80.1%
Africa1.9%3.8%3.2%0.4%66.4%6.3%4.5%1.2%69.7%
Asia Pacific18.5%8.0%7.6%0.3%77.9%8.1%7.5%0.5%80.1%
Europe23.7%6.2%5.1%0.8%83.5%6.4%5.1%1.0%83.2%
Latin America2.8%7.5%7.0%0.4%81.6%8.7%8.2%0.4%82.0%
Middle East9.1%0.8%3.7%-1.9%67.5%3.8%4.0%-0.2%74.3%
North America7.8%4.9%3.4%1.2%82.0%5.3%3.9%1.0%81.0%
Domestic36.2%6.6%6.7%-0.1%82.6%7.4%6.7%0.5%82.5%
Dom. Australia40.9%1.7%2.5%-0.6%75.2%3.4%1.6%1.4%78.1%
Domestic Brazil41.2%4.1%5.4%-1.0%76.9%4.8%4.2%0.4%80.7%
Dom. China P.R.49.1%11.9%12.5%-0.5%83.4%12.7%12.8%-0.1%84.4%
Domestic India41.4%16.6%18.0%-1.1%87.5%22.0%18.0%2.9%88.8%
Domestic Japan41.1%1.8%1.4%0.3%69.4%3.1%1.5%1.1%69.8%
Dom. Russian Fed.41.4%8.6%7.5%0.8%78.5%7.1%4.0%2.3%78.1%
Domestic US414.5%5.5%5.8%-0.3%85.9%5.0%5.1%-0.1%83.7%
1
% of industry RPKs in 20172Year-on-year change in load factor3Load factor level

World
share1

May 2018 (% year-on-year)% year-to-date

4
Note: the seven domestic passenger markets for which broken-down data are available account for 30% of global total RPKs and approximately
82% of total domestic RPKs
Note: the total industry and regional growth rates are based on a constant sample of airlines combining reported data and estimates for missing
observations. Airline traffic is allocated according to the region in which the carrier is registered; it should not be considered as regional traffic.

International Passenger Markets
International passenger traffic demand rose 5.8%, which was up from 4.6% growth in April. All
regions recorded growth, led by Asia-Pacific airlines. Total capacity climbed 5.4%, with load
factor rising 0.3 percentage point to 78.7%.
 Asia-Pacific airlines saw their traffic rise 8.0% in May compared to the year-ago period,
slightly down on an 8.1% increase in April. Capacity increased 7.6%, and load factor
edged up 0.3 percentages point to 77.9%. Passenger traffic has continued to trend
strongly upwards in seasonally-adjusted terms, buoyed by a combination of robust
regional economic growth and increases in the number of route options for travelers.
 European carriers’ May demand climbed 6.2% over May 2017, well above the 3.4%
year-over-year growth recorded in April. Capacity rose 5.1% and load factor was up 0.8
percentage point to 83.5%, which was the highest among regions. Despite the impact of
strikes in the region and mixed signals regarding the economic backdrop, traffic growth
is healthy.
 Middle East carriers’ May demand growth slowed to 0.8% compared to a year ago,
from 2.9% annual growth recorded in April. The earlier timing of Ramadan this year may
have affected the result, but more broadly, the upward trend in traffic has slowed
compared to last year. May capacity increased 3.7%, and load factor fell 1.9 percentage
points to 67.5%.
 North American airlines’ traffic rose 4.9% in May compared to May 2017, a strong
rebound from 0.9% annual growth in April (which was a 36-month low). Capacity climbed
3.4% and load factor increased 1.2 percentage points to 82.0%. Given the comparatively
strong US domestic economy, April’s weak demand performance likely was more
reflective of unfavorable year-to-year comparisons with April 2017, when the current
upsurge in growth began.
 Latin American airlines experienced a 7.5% increase in traffic in May compared to the
same month last year, which was up from 6.5% growth in April. Capacity climbed 7.0%
and load factor rose 0.4 percentage points to 81.6%. Economic disruption in Brazil may
be contributing to a slight slowdown in demand growth in recent months, but this is not
expected to have a long-term impact on the healthy traffic trend.
 African airlines’ traffic rose 3.8% in May compared to the year-ago period, which was
an 8-month low. Capacity rose 3.2% and load factor edged up 0.4 percentage point to
66.4%. The region’s two largest economies, Nigeria and South Africa, may be moving in
opposite directions again, with higher oil prices bolstering the Nigerian economy, while
business confidence in South Africa has weakened again.
Domestic Passenger Markets
Domestic demand rose 6.6% in May compared to May 2017, led by growth in China and India.
This was down from the 8.6% year-on-year growth recorded in April largely owing to moderate
growth in both countries, although each continued to post double-digit traffic gains.

Air passenger market detail – May 2018

RPK1ASK1PLF (%-pt)2PLF (level)3RPK1ASK1PLF (%-pt)2PLF (level)3
TOTAL MARKET100.0%6.1%5.9%0.1%80.1%6.8%6.0%0.6%81.0%
Africa2.2%-0.8%-0.9%0.0%66.8%2.3%1.2%0.7%70.1%
Asia Pacific33.7%8.7%8.6%0.1%79.6%9.4%8.6%0.6%81.4%
Europe26.5%6.0%5.0%0.8%83.0%6.5%5.1%1.1%82.6%
Latin America5.2%6.1%6.2%-0.1%79.8%6.9%6.1%0.6%81.6%
Middle East9.5%0.5%3.3%-1.9%67.5%3.8%3.8%0.0%74.2%
North America23.0%5.2%4.9%0.3%84.4%5.0%4.6%0.3%82.7%
International63.8%5.8%5.4%0.3%78.7%6.5%5.6%0.7%80.1%
Africa1.9%3.8%3.2%0.4%66.4%6.3%4.5%1.2%69.7%
Asia Pacific18.5%8.0%7.6%0.3%77.9%8.1%7.5%0.5%80.1%
Europe23.7%6.2%5.1%0.8%83.5%6.4%5.1%1.0%83.2%
Latin America2.8%7.5%7.0%0.4%81.6%8.7%8.2%0.4%82.0%
Middle East9.1%0.8%3.7%-1.9%67.5%3.8%4.0%-0.2%74.3%
North America7.8%4.9%3.4%1.2%82.0%5.3%3.9%1.0%81.0%
Domestic36.2%6.6%6.7%-0.1%82.6%7.4%6.7%0.5%82.5%
Dom. Australia40.9%1.7%2.5%-0.6%75.2%3.4%1.6%1.4%78.1%
Domestic Brazil41.2%4.1%5.4%-1.0%76.9%4.8%4.2%0.4%80.7%
Dom. China P.R.49.1%11.9%12.5%-0.5%83.4%12.7%12.8%-0.1%84.4%
Domestic India41.4%16.6%18.0%-1.1%87.5%22.0%18.0%2.9%88.8%
Domestic Japan41.1%1.8%1.4%0.3%69.4%3.1%1.5%1.1%69.8%
Dom. Russian Fed.41.4%8.6%7.5%0.8%78.5%7.1%4.0%2.3%78.1%
Domestic US414.5%5.5%5.8%-0.3%85.9%5.0%5.1%-0.1%83.7%
1
% of industry RPKs in 20172Year-on-year change in load factor3Load factor level

World
share1

May 2018 (% year-on-year)% year-to-date

4
Note: the seven domestic passenger markets for which broken-down data are available account for 30% of global total RPKs and approximately
82% of total domestic RPKs
Note: the total industry and regional growth rates are based on a constant sample of airlines combining reported data and estimates for missing
observations. Airline traffic is allocated according to the region in which the carrier is registered; it should not be considered as regional traffic.
Air passenger market detail – May 2018

RPK1ASK1PLF (%-pt)2PLF (level)3RPK1ASK1PLF (%-pt)2PLF (level)3
TOTAL MARKET100.0%6.1%5.9%0.1%80.1%6.8%6.0%0.6%81.0%
Africa2.2%-0.8%-0.9%0.0%66.8%2.3%1.2%0.7%70.1%
Asia Pacific33.7%8.7%8.6%0.1%79.6%9.4%8.6%0.6%81.4%
Europe26.5%6.0%5.0%0.8%83.0%6.5%5.1%1.1%82.6%
Latin America5.2%6.1%6.2%-0.1%79.8%6.9%6.1%0.6%81.6%
Middle East9.5%0.5%3.3%-1.9%67.5%3.8%3.8%0.0%74.2%
North America23.0%5.2%4.9%0.3%84.4%5.0%4.6%0.3%82.7%
International63.8%5.8%5.4%0.3%78.7%6.5%5.6%0.7%80.1%
Africa1.9%3.8%3.2%0.4%66.4%6.3%4.5%1.2%69.7%
Asia Pacific18.5%8.0%7.6%0.3%77.9%8.1%7.5%0.5%80.1%
Europe23.7%6.2%5.1%0.8%83.5%6.4%5.1%1.0%83.2%
Latin America2.8%7.5%7.0%0.4%81.6%8.7%8.2%0.4%82.0%
Middle East9.1%0.8%3.7%-1.9%67.5%3.8%4.0%-0.2%74.3%
North America7.8%4.9%3.4%1.2%82.0%5.3%3.9%1.0%81.0%
Domestic36.2%6.6%6.7%-0.1%82.6%7.4%6.7%0.5%82.5%
Dom. Australia40.9%1.7%2.5%-0.6%75.2%3.4%1.6%1.4%78.1%
Domestic Brazil41.2%4.1%5.4%-1.0%76.9%4.8%4.2%0.4%80.7%
Dom. China P.R.49.1%11.9%12.5%-0.5%83.4%12.7%12.8%-0.1%84.4%
Domestic India41.4%16.6%18.0%-1.1%87.5%22.0%18.0%2.9%88.8%
Domestic Japan41.1%1.8%1.4%0.3%69.4%3.1%1.5%1.1%69.8%
Dom. Russian Fed.41.4%8.6%7.5%0.8%78.5%7.1%4.0%2.3%78.1%
Domestic US414.5%5.5%5.8%-0.3%85.9%5.0%5.1%-0.1%83.7%
1
% of industry RPKs in 20172Year-on-year change in load factor3Load factor level

World
share1

May 2018 (% year-on-year)% year-to-date

4
Note: the seven domestic passenger markets for which broken-down data are available account for 30% of global total RPKs and approximately
82% of total domestic RPKs
Note: the total industry and regional growth rates are based on a constant sample of airlines combining reported data and estimates for missing
observations. Airline traffic is allocated according to the region in which the carrier is registered; it should not be considered as regional traffic.
Air passenger market detail – May 2018

RPK1ASK1PLF (%-pt)2PLF (level)3RPK1ASK1PLF (%-pt)2PLF (level)3
TOTAL MARKET100.0%6.1%5.9%0.1%80.1%6.8%6.0%0.6%81.0%
Africa2.2%-0.8%-0.9%0.0%66.8%2.3%1.2%0.7%70.1%
Asia Pacific33.7%8.7%8.6%0.1%79.6%9.4%8.6%0.6%81.4%
Europe26.5%6.0%5.0%0.8%83.0%6.5%5.1%1.1%82.6%
Latin America5.2%6.1%6.2%-0.1%79.8%6.9%6.1%0.6%81.6%
Middle East9.5%0.5%3.3%-1.9%67.5%3.8%3.8%0.0%74.2%
North America23.0%5.2%4.9%0.3%84.4%5.0%4.6%0.3%82.7%
International63.8%5.8%5.4%0.3%78.7%6.5%5.6%0.7%80.1%
Africa1.9%3.8%3.2%0.4%66.4%6.3%4.5%1.2%69.7%
Asia Pacific18.5%8.0%7.6%0.3%77.9%8.1%7.5%0.5%80.1%
Europe23.7%6.2%5.1%0.8%83.5%6.4%5.1%1.0%83.2%
Latin America2.8%7.5%7.0%0.4%81.6%8.7%8.2%0.4%82.0%
Middle East9.1%0.8%3.7%-1.9%67.5%3.8%4.0%-0.2%74.3%
North America7.8%4.9%3.4%1.2%82.0%5.3%3.9%1.0%81.0%
Domestic36.2%6.6%6.7%-0.1%82.6%7.4%6.7%0.5%82.5%
Dom. Australia40.9%1.7%2.5%-0.6%75.2%3.4%1.6%1.4%78.1%
Domestic Brazil41.2%4.1%5.4%-1.0%76.9%4.8%4.2%0.4%80.7%
Dom. China P.R.49.1%11.9%12.5%-0.5%83.4%12.7%12.8%-0.1%84.4%
Domestic India41.4%16.6%18.0%-1.1%87.5%22.0%18.0%2.9%88.8%
Domestic Japan41.1%1.8%1.4%0.3%69.4%3.1%1.5%1.1%69.8%
Dom. Russian Fed.41.4%8.6%7.5%0.8%78.5%7.1%4.0%2.3%78.1%
Domestic US414.5%5.5%5.8%-0.3%85.9%5.0%5.1%-0.1%83.7%
1
% of industry RPKs in 20172Year-on-year change in load factor3Load factor level

World
share1

May 2018 (% year-on-year)% year-to-date

4
Note: the seven domestic passenger markets for which broken-down data are available account for 30% of global total RPKs and approximately
82% of total domestic RPKs
Note: the total industry and regional growth rates are based on a constant sample of airlines combining reported data and estimates for missing
observations. Airline traffic is allocated according to the region in which the carrier is registered; it should not be considered as regional traffic.
 India’s domestic traffic rose 16.6% year-over-year, which was down from 25.7% in April.
Passenger volumes in India have fallen back in seasonally-adjusted terms in recent
months alongside some mixed signals on the economic front. Notwithstanding this, May
was India’s 45th consecutive month of double-digit annual RPK growth. Demand
continues to be supported by strong growth in the number of airport connections within
the country: some 22% more airport-pairs are scheduled to operate in 2018 compared
to last year.
 US domestic traffic experienced a mild pick-up in May, with 5.5% year-over-year traffic
growth, up from 5.3% in April. This partly offset the moderate growth in China and India.
Domestic traffic is trending upward at an annualized rate of around 7%, helped by the
comparatively strong US economy.
The Bottom Line
“Last month, IATA released its mid-year economic report showing expectations of an industry
net profit of $33.8 billion. This is a solid performance. But our buffer against shocks is just $7.76.
That’s the average profit per passenger that airlines will make this year—a narrow 4.1% net
margin. And there are storm clouds on the horizon, including rising cost inputs, growing
protectionist sentiment and the risk of trade wars, as well as geopolitical tensions. Aviation is the
business of freedom, liberating people to lead better lives. Governments that recognize this will
take steps to ensure aviation is economically sustainable. And aviation works best when
borders are open to trade and people,” said de Juniac.
-IATA-

For more information, please contact:
Corporate Communications
Tel: +41 22 770 2967
Email: corpcomms@iata.org

Notes for Editors:
 IATA (International Air Transport Association) represents some 290 airlines comprising
82% of global air traffic.
 You can follow us at http://twitter.com/iata2press for news specially catered for the
media.
 All figures are provisional and represent total reporting at time of publication plus
estimates for missing data. Historic figures may be revised.
 Domestic RPKs accounted for about 36% of the total market. It is most important for
North American airlines as it is about 66% of their operations. In Latin America, domestic
travel accounts for 46% of operations, primarily owing to the large Brazilian market. For
Asia-Pacific carriers, the large markets in India, China and Japan mean that domestic
travel accounts for 45% of the region’s operations. It is less important for Europe and
most of Africa where domestic travel represents just 11% and 14% of operations,
respectively. And it is negligible for Middle Eastern carriers for whom domestic travel
represents just 4% of operations.
 Explanation of measurement terms:
o RPK: Revenue Passenger Kilometers measures actual passenger traffic
o ASK: Available Seat Kilometers measures available passenger capacity
o PLF: Passenger Load Factor is % of ASKs used.
 IATA statistics cover international and domestic scheduled air traffic for IATA member
and non-member airlines.
 Total passenger traffic market shares by region of carriers in terms of RPK are: Asia-
Pacific 33.7%, Europe 26.5%, North America 23.0%, Middle East 9.5%, Latin America
5.2%, and Africa 2.2%.