IATA sees strong passenger and cargo demand in June
Image courtesy IATA
Total passenger demand, measured in revenue passenger kilometres (RPK), was up 9.1% compared to June 2023. Total capacity, measured in available seat kilometres (ASK), was up 8.5% year-on-year. The June load factor was 85.0% (+0.5 percentage points (ppt) compared to June 2023).
International passenger demand rose 12.3% compared to June 2023. Capacity was up 12.7% year-on-year and the load factor improved to 85.0% (-0.3ppt on June 2023).
Domestic passenger demand rose 4.3% compared to June 2023, capacity was up 2.1% year-on-year and the load factor was 85.0% (+1.7ppt compared to June 2023).
Willie Walsh (above), IATA’s Director General said: “Demand grew across all regions as the peak Northern summer travel season began in June. And with overall capacity growth lagging demand we saw a very strong average load factor of 85% achieved in both domestic and international operations. Operating with such high load factors is both good and challenging. It makes it even more important for all the stakeholders to operate with equal levels of efficiency to minimise delays and get travelers to their destinations on schedule.
“As the Olympic Games unfold in Paris there is pride across the aviation industry for its continuing role in supporting the Olympic story by bringing many of the athletes, fans and officials together. It is a great reminder of how aviation transforms our very big world into a global community. We wish France every success as the host of the games and cheer all the athletes who will demonstrate the best of human endeavour over the next weeks.”
Regional Breakdown - International Passenger Markets
All regions showed strong growth for international passenger markets in June 2024 compared to June 2023.
Asia-Pacific airlines’ growth remained strong, with a 22.6% year-on-year increase in demand. Capacity increased 22.9% year-on-year and the load factor was 83.0% (-0.2ppt compared to June 2023). The Africa-Asia route was the fastest expanding regional pair, growing 38.1%.
European carriers saw a 9.1% year-on-year increase in demand. Capacity increased 9.8% year-on-year and the load factor was 87.4% (-0.6ppt compared to June 2023).
Middle Eastern airlines saw a 9.6% year-on-year increase in demand. Capacity increased 9.4% year-on-year and the load factor was 79.7% (+0.1ppt compared to June 2023).
North American carriers saw a 6.6% year-on-year increase in demand. Capacity increased 8.6% year-on-year, and the load factor was 88.7% (-1.6 ppt compared to June 2023), the highest among regions.
Latin American airlines saw a 15.3% year-on-year increase in demand. Capacity climbed 15.6% year-on-year. The load factor was 85.1% (-0.2ppt compared to June 2023).
African airlines saw a 16.9% year-on-year increase in demand. Capacity was up 5.8% year-on-year. The load factor rose to 77.0% (+7.4ppt compared to June 2023). This was the largest improvement in load factor among all regions.
Domestic markets
Domestic demand increased in June, with solid growth in most key markets, bar Japan and Australia. Brazil posted the largest gain with 7.6% year-on-year growth. Year-on-year June domestic ticket sales for July and August travel dipped -0.9%, pointing to a gradual moderation in demand back to pre-pandemic growth rates.
Air Cargo
Global air cargo markets showed continuing strong annual growth in demand. This contributed to an exceptional first half-year performance for air cargo, with volumes exceeding 2023, 2022 and even the record-breaking 2021 levels.
Total demand, measured in cargo tonne-kilometres (CTKs), rose by 14.1% compared to June 2023 levels (15.6% for international operations). This is the seventh consecutive month of double-digit year-on-year growth.
Capacity, measured in available cargo tonne-kilometres (ACTKs), increased by 8.8% compared to June 2023 (10.8% for international operations).
Total half-year (H1) demand increased by 13.4% compared to H1 2023, by 4.3% compared to H1 2022 and by 0.02% compared to H1 2021.
Willie said: "Air cargo demand surged in June. Strong growth across all regions and major trade lanes combined for a record-breaking first-half performance in terms of CTKs. Maritime shipping constraints and a booming e-commerce sector are among the strongest growth drivers. Meanwhile, the sector has remained largely impervious to ongoing political and economic challenges and the US customs crackdown on e-commerce deliveries from China. Air cargo looks to be on solid ground to continue its strong performance into the second half of 2024."
IATA noted several factors in the operating environment:
- In June the Purchasing Managers Index (PMI) for global manufacturing output indicated expansion (52.3) while the new export orders PMI registered a small contraction, falling below the critical 50-point benchmark to 49.3.
- Global cross-border trade expanded 0.1% month-on-month in May while industrial production stayed level compared to the previous month.
- Inflation was a mixed picture in June. In the EU and Japan, inflation rates stayed roughly constant compared to the previous month at 2.6% and 2.8% respectively, while dropping in the US to 3.0%. In contrast, China’s inflation rate remained near zero (0.3%) reflecting weak domestic demand amid high unemployment, slow income growth, and a crisis in the real estate sector, a trend that has persisted since 2023.
June Regional Performance
Asia-Pacific airlines saw 17.0% year-on-year demand growth for air cargo in June — the strongest among all regions. Demand on the Africa-Asia trade lane grew by 37.5% year-on-year, while the Europe-Asia, Within Asia and Middle East-Asia trade lanes rose by 20.3%, 21.0% and 15.1% respectively. Capacity increased by 10.7% year-on-year.
North American carriers saw 9.5% year-on-year demand growth for air cargo in June — the weakest among all regions. Demand on the North America-Europe route saw an increase of 6.7%, while the Asia-North America trade lane, the world’s largest, grew by 12.8% year-on-year, the largest annual increase in five months. June capacity increased by 6.0% year-on-year.
European carriers saw 16.1% year-on-year demand growth for air cargo in June. Intra-European air cargo rose by 16.7% compared to June 2023, the sixth month in a row of double-digit annual growth. Europe–Middle East and Europe–Asia routes saw demand increase by 30.2% and 20.3% respectively. June capacity increased 9.1% year-on-year.
Middle Eastern carriers saw 13.8% year-on-year demand growth for air cargo in June. As mentioned above, the Middle East–Europe market performed particularly well with 30.2% annual growth, ahead of Middle East–Asia which grew by 15.1% year-on-year. June capacity increased 6.9% year-on-year.
Latin American carriers saw 13.1% year-on-year demand growth for air cargo in June. Capacity increased 15.5% year-on-year. Notably, Latin America posted the second-highest increase in international demand growth at 17.2% in June, up 6.3 percentage points compared to the previous month.
African airlines saw 11.8% year-on-year demand growth for air cargo in June. Demand on the Africa–Asia market increased by 37.5% compared to June 2023, the strongest performance of all trade lanes. June capacity increased by 23.8% year-on-year.
