“The industry experienced continued strong traffic growth in August, putting the cap on a very good peak travel season. The all-time record load factor reflects that airlines are maximizing the efficiency of their assets at a time of rising fuel prices and other costs that are limiting the opportunities for low fare stimulation,” IATA’s director general and CEO, Alexandre de Juniac, said.
Among North American airliners, international demand was 3.7% higher compared to August a year ago. While demand slowed from a 4.1% recorded in July, the recent growth largely reflected developments a year ago rather than any change in the current trend.
However, Delta Air Lines (DAL) stock and other airline companies hit some turbulence after the carrier lowered expectations on third-quarter profits and unit revenue, warning that Hurricane Florence had cut into the key industry metric, Investor’s Business Daily reported.
Financial advisors who are interested in learning more about the airline industry can register for the upcoming webcast on Thursday, October 4 here.