The International Air Transport Association (IATA) has announced global passenger traffic results for June showing that demand (measured in total revenue passenger kilometers or RPKs) rose by 7.8% compared to June 2017. This was up from 6.0% year-over-year growth recorded in both May and April.

June capacity (available seat kilometers or ASKs) increased by 6.5%, and load factor rose 1.0 percentage point to 82.8%. The first six months of 2018 produced demand growth of 7.0%, a strong performance, but down from 8.3% growth recorded in the first half of 2017.

IATA sees prospects of a global trade war and rising costs casting a shadow over the second half of the year.

June international passenger demand rose 7.7% compared to June 2017. All regions recorded growth, led by airlines in the Middle East and Africa. Capacity climbed 5.9%, and load factor increased 1.4 percentage points to 81.9%.

Middle Eastern carriers posted an 11.0% demand increase in June compared to the same month last year – a sharp turnaround from the flat traffic growth in May, which was partly attributable to the timing of Ramadan between the two years. Capacity rose 8.0% and load factor climbed 1.9 percentage points to 71.0%.

Asia-Pacific airlines’ June traffic rose 9.5% compared to the year-ago period, up from 7.7% growth recorded in May year-over-year. Capacity rose 7.4% and load factor edged up 1.5 percentage points to 80.6%. 

European carriers saw traffic rise 6.1% in June compared to June 2017, down slightly from a 6.3% year-over-year increase recorded in May. Capacity climbed 4.8% and load factor rose 1.1% percentage points to 86.8%, highest among the regions.

North American airlines’ demand rose 5.9% compared to June a year ago, an improvement from 5.0% growth recorded in May. Capacity climbed 3.6%, with load factor increasing 1.9 percentage points to 86.7%.

Demand for domestic travel climbed 7.9% in June compared to June 2017, up somewhat from the 6.7% annual growth seen in May. June capacity increased 7.5%, and load factor edged up 0.3 percentage point to 84.5%. Led once again by double-digit gains in India and China, all markets reported demand increases, but with wide variation.