IATA: Passenger demand up 10% in May; Cargo demand continues
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The International Air Transport Association (IATA) released data for May 2024 global passenger demand with the following highlights:
• Total demand, measured in revenue passenger kilometers (RPKs), was up 10.7% compared to May 2023. Total capacity, measured in available seat kilometers (ASK), was up 8.5% year- on-year. The May load factor was 83.4% (+1.7ppt compared to May 2023), a record high for May.
• International demand rose 14.6% compared to May 2023. Capacity was up 14.1% year-on- year and the load factor improved to 82.8% (+0.3ppt on May 2023).
• Domestic demand rose 4.7% compared to May 2023; capacity was up 0.1% year-on-year and the load factor was 84.5% (+3.8ppt compared to May 2023).
“Strong demand for travel continues with airlines posting a 10.7% year-on-year increase in travel for May. Airlines filled 83.4% of their seats, a record for the month. With May ticket sales for early peak- season travel up nearly 6%, the growth trend shows no signs of abating. Airlines are doing everything they can to ensure smooth journeys for all travelers over the peak northern summer period. But our expectations of air navigation service providers (ANSPs) are already being tested. With 5.2 million minutes of air traffic control delays racked up in Europe even before the peak season begins, it is clear that Europe’s ANSPs have unresolved challenges. And the 32,000 flight delays over the Memorial Day weekend in May show that challenges persist in the US too. Airlines are accountable to their customers; ANSPs must be as well. ANSP performance matters to their airline customers and to millions of travelers. We all need them to do their job efficiently,” said Willie Walsh, IATA’s Director General.
CARGO
The International Air Transport Association (IATA) released data for May 2024 global air cargo markets showing continuing strong annual growth in demand.
• Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 14.7% compared to May 2023 levels (15.5% for international operations). This is the sixth consecutive month of double-digit year-on-year growth.
• Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 6.7% compared to May 2023 (10.2% for international operations).
"Air cargo demand moved sharply upwards in May across all regions. The sector benefitted from trade growth, booming e-commerce and capacity constraints on maritime shipping. The outlook remains largely positive with purchasing managers showing expectations for future growth. Some dampening, however, could come as the US imposes stricter conditions on e-commerce deliveries from China. Increased costs and transit times for shipments under $800 may deter US consumers and pose significant challenges for growth on the Asia-North America trade lane—the world’s biggest,” said Willie Walsh, IATA Director General."
Several factors in the operating environment should be noted:
• In May the Purchasing Managers Index (PMIs) for global manufacturing output and new export orders indicated expansion (52.6 and 50.4 respectively).
• Industrial production and global cross-border trade increased month-on-month in April (0.5% and 1.5% respectively).
• Inflation saw a mixed picture in May. In the EU and Japan, inflation rates fell to 2.7% and 2.8% respectively, while rising in the US to 3.3%. In contrast, China’s inflation rate remained near zero (0.3%) reflecting weak domestic demand due to high unemployment, slow income growth, and a crisis in the real estate sector, a trend that has persisted since 2023.
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