The International Air Transport Association (IATA) has reported an 8 per cent increase in global passenger demand in July 2024 compared to the same month last year, marking a record high for the aviation industry. The demand, measured in revenue passenger kilometers (RPK), was accompanied by a 7.4 per cent rise in capacity, measured in available seat kilometers (ASK). Despite challenges, including a significant IT outage on July 19, the global load factor reached 86.0 per cent, a 0.5 percentage point increase compared to July 2023.
International travel saw a robust 10.1 per cent increase in demand year-on-year, with capacity growing by 10.5 per cent. However, the international load factor slightly decreased to 85.9 per cent, down by 0.3 percentage points. Asia-Pacific airlines led the surge with a remarkable 19.1 per cent growth in demand, driven by the ongoing recovery of regional markets and a 20.3 per cent increase in capacity. European carriers also performed well, with an 8.3 per cent increase in demand and a load factor of 87.5 per cent.
On the domestic front, passenger demand grew by 4.8 per cent, with capacity rising by 2.8 per cent year-on-year. The domestic load factor improved to 86.1 per cent, a 1.7 percentage point increase from July 2023. Brazil continued to lead the domestic market growth, while Japan and Australia rebounded strongly from the previous month’s downturns.
Asia-Pacific: The region saw a 12.0 per cent rise in total RPKs, with a load factor of 83.4 per cent. Asia-Middle East routes were among the few to surpass pre-pandemic levels.
Europe: Demand increased by 7.2 per cent, with a load factor of 88.2 per cent, making it one of the highest among all regions.
North America: The region reported a 4.9 per cent increase in demand, with the highest load factor globally at 88.9 per cent.
Latin America: Passenger demand grew by 13.4 per cent, though the load factor dipped slightly to 87.5 per cent due to a 15.7 per cent capacity increase.
Middle East: Demand rose by 5.8 per cent, with a load factor of 84.1 per cent.
Africa: African airlines experienced a 7.4 per cent increase in demand, with a load factor of 74.3 per cent.
Malaysia Aviation Group, the parent of Malaysia Airlines, announced a 20% reduction in network capacity amid shortages of planes, labour, and parts. This reduction affects domestic routes and flights across Southeast Asia, North Asia, Australia, and other regions. The group aims to ensure credible schedules and an optimal customer experience.
Willie Walsh, IATA’s Director General, hailed the continued recovery and record-breaking demand despite the operational challenges. “July was another positive month, highlighting the essential role aviation plays in connecting people and driving economic activity,” Walsh said. However, he also emphasized the need for manufacturers and suppliers to address persistent supply chain issues that are hindering the industry’s ability to meet growing demand.As the northern summer season winds down, the aviation sector is transitioning from leisure to business travel, with air travel demand expected to remain strong. The industry continues to call for efforts to ensure that air travel remains accessible and affordable as it navigates these challenges.
