IATA reports record high of loadfactors as demand for air travel continues to grow

The International Air Transport Association (IATA) released data for August 2024 global passenger demand with the following highlights:

•    Total demand, measured in revenue passenger kilometers (RPK), was up 8.6% compared to August 2023. Total capacity, measured in available seat kilometers (ASK), was up 6.5% year-on-year. The August load factor was 86.2% (+1.6ppt compared to August 2023), a new record high.

•    International demand rose 10.6% compared to August 2023. Capacity was up 10.1% year-on-year and the load factor rose to 85.7% (+0.4ppt compared to August 2023).

•    Domestic demand rose 5.6% compared to August 2023. Capacity was up 1.2% year-on-year and the load factor was 86.9% (+3.6ppt compared to August 2023).

“The market for air travel is hot and airlines are doing a great job at meeting the growing demand for travel. Efficiency gains have driven load factors to record highs while the 6.5% capacity increase demonstrates resilience in the face of persistent supply chain issues and infrastructure deficiencies,” said Willie Walsh, IATA’s Director General.

“Looking ahead, the continued strong demand growth signals that we could be fast approaching an infrastructure capacity crunch that would restrict connectivity and choice for passengers and businesses. If governments want to maximize the benefits of aviation, they must take bold decisions to ensure sufficient infrastructure capacity. And, in the interim, both airports and air navigation service providers need to do more with the resources they currently have. In particular, the variance in declared capacity of airports with broadly the same infrastructure needs to be resolved, with airports emulating the best performers. The industry cannot afford to under-utilize the airport infrastructure that we have,” continued Walsh.

Regional Breakdown – International Passenger Markets

All regions showed growth for international passenger markets in August 2024 compared to August 2023. Ticket sales in May-July for travel in August-September showed a 6.6% year-on-year increase, which bodes well for further strong growth this year.

Asia-Pacific airlines achieved a 19.9% year-on-year increase in demand. Capacity increased 18.8% year-on-year and the load factor was 85.2% (+0.8ppt compared to August 2023). Asia-Pacific is still growing robustly and is now just 8 percentage points from full recovery to pre-pandemic volumes.

European carriers saw a 9.1% year-on-year increase in demand. Capacity increased 8.5% year-on-year, and the load factor was 87.2% (+0.5ppt compared to August 2023). The Europe-Asia route was by far the fastest-growing, but it is still markedly below its 2019 peak.

Middle Eastern carriers saw a 4.9% year-on-year increase in demand. Capacity increased 5.6% year-on-year and the load factor was 82.5% (-0.6ppt compared to August 2023).

North American carriers saw a 4.3% year-on-year increase in demand. Capacity increased 3.8% year-on-year, and the load factor was 88.2% (+0.4 ppt compared to August 2023), the highest among regions.

Latin American airlines saw a 13.6% year-on-year increase in demand. Capacity climbed 15.2% year-on-year. The load factor was 85.1% (-1.2ppt compared to August 2023).

African airlines saw a 10.1% year-on-year increase in demand. Capacity was up 7.3% year-on-year. The load factor rose to 77.8% (+2.0ppt compared to August 2023).

Domestic markets

Domestic demand increased in August, with growth in all key markets, especially China. Domestic ticket sales for August-September grew 4.3% year-on-year, underpinning solid growth prospects for the rest of the year.