Global passenger demand continues to surge, association says

The International Air Transport Association (IATA) recently released its latest industry report, revealing that the remarkable resurgence in passenger traffic, witnessed post-pandemic, persisted through August.

“Demand for air travel performed well in August,” said Willie Walsh, IATA’s Director General.

“For the year to date, international traffic has increased by 50 per cent versus last year and ticket sales data show international bookings strengthening for travel in the last part of the year,” he added.

According to the report, total traffic in August 2023, measured in revenue passenger kilometres (RPKs), surged by an impressive 28.4 per cent in comparison to August 2022. The data signifies an exceptional recovery as global air traffic now stands at a remarkable 95.7 per cent of pre-COVID levels.

The report highlights that the surge was not limited to a specific sector, with both domestic and international segments displaying notable growth.

Domestic traffic for August 2023 rose by an impressive 25.4 per cent when compared to August 2022. More impressively, this figure stood 9.2 per cent above the August 2019 figures.

According to IATA, this growth is largely attributed to the robust domestic demand observed in China.

International traffic exhibited even more promising growth, climbing by 30.4 per cent in comparison to the same month in the preceding year. All global markets registered double-digit percentage increases in traffic. International RPKs impressively reached 88.5 per cent of the levels observed in August 2019.

“Heading into the last quarter of the year, the airline industry is nearly fully recovered to 2019 levels of demand,” Walsh said.

“The focus, however, has not been on getting back to a specific number of passengers or flights, but rather on meeting the demand by businesses and individuals for connectivity that was artificially suppressed for more than two years,” he added.

What is more, Asia-Pacific airlines led the regions with a substantial 98.5 per cent increase in August 2023 traffic compared to August 2022. Notably, capacity rose by 85.5 per cent, and the load factor increased by 5.5 percentage points to reach 84.2 per cent.

European carriers marked a 13.6 per cent increase in traffic in August 2023 when compared to the same month in 2022. The capacity also experienced an uptick of 12.3 per cent, with the load factor edging up by 1.1 percentage points to 86.8 per cent.

Middle Eastern airlines witnessed a significant uptick of 27.3 per cent in August traffic compared to the previous year. This growth was accompanied by a 22.7 per cent increase in capacity, and the load factor showed a promising increase of 3.0 percentage points to reach 83.1 per cent.

North American carriers registered an 18.6 per cent traffic increase in August 2023 compared to the same period in 2022. Capacity showed a growth of 17.5 per cent, with the load factor improving by 0.8 percentage points to 87.7 per cent. This load factor was recognised as the highest among the regions for a third consecutive month.

Latin American airlines experienced a commendable growth rate, with traffic surging by 26.4 per cent in comparison to August 2022. This was coupled with a 23.8 per cent increase in August capacity, resulting in a 1.7 percentage point rise in the load factor, reaching 86.1 per cent.

African airlines also saw an impressive traffic increase of 26.1 per cent in August 2023 when compared to the same period in the previous year. The surge was accompanied by a 25.5 per cent rise in August capacity. The load factor rose by 0.4 percentage points, reaching 76.2 per cent.

The report also sheds light on the situation in various countries, showcasing India’s resilience as domestic RPKs rose by 23.2 per cent compared to the previous year. Impressively, India has exceeded pre-pandemic levels for seven consecutive months.

However, the Japanese domestic market faced disruption due to Typhoon Khanun, resulting in substantial air traffic interruptions in southern Japan. Domestic RPKs grew by 8.7 per cent year over year, reflecting a slowdown from the 13.4 per cent growth witnessed in the preceding month.

Finally, Walsh explained that “having seen the economic, social, and personal losses when airlines could not fly during the COVID-19 crisis, this industry is determined to secure a sustainable long-term future by achieving net zero carbon emissions by 2050”.

“That was clearly evident at the first IATA World Sustainability Symposium (WSS) where discussions focused on how to decarbonise. We know that our customers want a world in which they can enjoy the freedom to travel sustainably,” he added.

“This inaugural WSS was a critical step in aligning policymakers, the aviation value chain and airlines with the concrete steps needed to deliver. And we will measure progress when we meet again in a year’s time,” Walsh concluded.