Following a particularly challenging 2019, the global passenger market is beginning to show signs of stabilizing.
Over September 2019, the global air passenger market grew by 2.6 percent. This third-quarter showing put the year-to-date at a 3.1 percent growth, though this was less than half that seen in 2018. While it’s a significant slowdown compared to its forebears, ACI World Director General Angela Gittens pointed out that the figures are a solid positive given the current environment.
“Trade wars, a slowing global economy, and increasing social unrest around the world have created a challenging backdrop for the air transport industry,” Gittens said. “Despite this, growth is expected to start recovering in 2020, and we can remain optimistic that the new year will bring an easing of tensions in international relations between major economies.”
Gittens also noted the continued issues with the freight market.
“The freight market continued to struggle with the international and domestic volumes posting comparable declines,” Gittens said. “The domestic freight market, which has held up well in the face of global uncertainty in 2019, could end the year with an overall decline with the North American market, which has been the main driver of the domestic segment, having finally buckled under a slowing global economy.”
The global volume in air freight declined by 4.2 percent over September, and the year-to-date figures showed a loss of 3.1 percent, based on data pulled from airport reports and statistics. Both international and domestic volumes plummeted 4.2 percent and 4 percent, respectively, over September. Year-to-date, this puts the international market at -4.7 percent, while the domestic market clings to the barest margin of positivity, at 0.4 percent growth.
However, the passenger market is buoyed by activity in the North American domestic market. Domestically, traffic grew by 2.2 percent over the year, while international travel grew 4.3 percent. North America was also the best-performing market in September, ending the month with a 3.7 percent year-over-year increase.