BUSINESS INSIGHTS : The latest news, analysis, and trends about protection and care

Low-cost airlines increased air traffic in 2016 : World air passenger traffic continued to rise in 2016, though at a slightly slower rate than in previous years.

Thanks to the entrepreneurship of low-cost airlines, EasyJet and the like accounted for a record-breaking 28% of this air traffic. 

Your browser does not support the video tag.

3.7 billion passengers worldwide were carried by airlines in 2016, according to figures recently released by the International Civil Aviation Organization (ICAO). This shows a 6% increase on the figures from 2015, when a 7% increase was achieved, according to data collected by this United Nations agency that specialises in aviation.

 

Passing the milestone of a billion passengers

 

The increase was most significant in Asia (+8%), the Middle East (+11.2%), Latin America (+6.5%) and Africa (+5.7%), while the rate of growth was somewhat slower in Europe (+4.3%) and North America (+3.5%), which nevertheless represents 13% of the total volume of world traffic. "Over half of the world’s tourists who travel across international borders each year were transported by air," stated the ICAO.

In 2016, low-cost airlines accounted for 28% of air passenger traffic, exceeding the milestone of a billion passengers for the very first time. In Europe, these companies transported nearly a third of all passengers, a higher proportion than in Asia (31%) or North America (25%). "The increasing presence of low-cost carriers notably in emerging economies have contributed to the overall growth of passenger traffic," said the organisation.

Our annual #aviation statistics show 2016 supported traffic growth and airline profitability. Find out more: https://t.co/5avk1k20x2 pic.twitter.com/zRCjrDS0oe

— ICAO (@icao) January 3, 2017

 

The United States account for 43% of the total number of domestic passengers

 

With regard to domestic traffic, the United States account for 43% of the total number of passengers, a 4.3% increase in one year. As for Asia, passenger traffic increased by 10% owing to the strong demand in India and China.

From a financial point of view, increased traffic and a significant decrease in fuel costs should enable airlines to record operating profits of USD 60 billion for 2016, two billion more than in 2015. "More than a third of the profits are expected to come from the carriers of North America, whose domestic market represents 66 per cent of their total operations," predicted the ICAO.

 

 

NewsGene

About Allianz Partners Business Insights