Air Capital Insider

Global, U.S. passenger traffic continues to rise

Global passenger traffic continued to move higher in October and for the year, according to data released Thursday by the International Air Transport Association.

IATA said global passenger traffic in October 2015 grew 7.5 percent compared with October 2014, while capacity was up 5.7 percent in the same period.

For the first 10 months of 2015, global passenger traffic was up 6.8 percent compared with the first 10 months of 2014, while capacity grew 6 percent in the same period.

In the U.S., IATA said October passenger traffic increased 6.9 percent from the same month a year ago, while capacity grew 5 percent in the same period.

IATA did not provide year-to-date airline passenger growth measures for the U.S. or other countries.

Analysts generally said the IATA report supports strong production rates of new commercial aircraft at Airbus and Boeing — and by extension, Spirit AeroSystems, which manufactures major components of airliners for both airplane makers.

“These robust levels continue to give us confidence of sustained OEM production rates for current narrow-body platforms and new wide-body (787, A350) programs over the next few years,” wrote Sterne Agree CRT analyst Peter Arment in a note to investors Thursday.