Total revenue passenger kilometers (RPKs) rose 6.8 percent compared to the same point in 2016, according to the International Air Transport Association’s (IATA) global passenger traffic results for the month of July.
RPKs were also found to be down from the 7.7 percent year-over-year growth recorded in June.
All IATA regions reported solid-or-better growth in passenger volumes while capacity and load factor both increased by 6.1 percent and 0.6 percent, respectively.
“As is evidenced by the record high load factor in July, the appetite for air travel remains very strong. However, the stimulus effect of lower fares is softening in the face of rising cost inputs,” IATA Director-General Alexandre de Juniac said. “This suggests a moderating in the supportive demand backdrop.”
The report also stated that July international passenger demand rose by 6.2 percent compared to the same point last year, which represented a slow down from the 7.6 percent growth observed in June.
Total capacity increased by approximately 5.5 percent while load factor rose only slightly by 0.5 percent to a total of 84.6 percent.
Factoring only North American carriers, airline traffic increased by 3.5 percent compared to July 2016, which is ahead of the five-year average pace of 2.9 percent.
According to the IATA, outbound travel is being supported by a relatively solid economic backdrop, however, anecdotal evidence suggested that inbound demand is being negatively influenced by the additional security measures in place for travel to the United States.