IATA: Passenger Demand Recovery Continues on Track in October

The ongoing recovery in passenger demand continued in October, according to the International Air Transport Association (IATA).

Total traffic in October 2023 (measured in revenue passenger kilometers or RPKs) rose 31.2 percent compared to October 2022. Globally, traffic is now at 98.2 percent of pre-COVID levels.

“October’s strong result brings the industry ever closer to completing the post-pandemic traffic recovery,” said IATA Director General Willie Walsh, adding that domestic markets remain above pre-COVID levels.

According to the data, domestic traffic for October rose 33.7 percent versus October 2022, driven by the triple-digit percentage growth recorded in China, and was 4.8 percent above the October 2019 results.

International traffic climbed 29.7% compared to the same month a year ago.

“International demand is recovering, but more slowly. In particular, Asia Pacific carriers’ international demand is 19.5 percent behind 2019. This could reflect the late lifting of COVID restrictions in parts of the region as well as commercial developments and political tensions,” Walsh said.

All markets saw double-digit percentage gains year on year. International RPKs reached 94.4 percent of October 2019 levels.

Source: IATA

Looking at some international passenger markets, European carriers’ October 2023 traffic rose 16.1 percent versus October 2022. Capacity increased 14.5 percent, and load factor edged up 1.2 percentage points to 85.1 percent.

North American carriers had a 17.5 percent traffic rise in October 2023 versus the 2022 period. Capacity also increased 17.5 percent, and load factor was stable at 83.9 percent.

According to forecasts by IATA, an estimated 4.7 billion people are expected to fly in 2024 generating 25.7 billion dollars in revenues for airline companies.

Walsh: We must achieve net zero carbon emissions by 2050

IATA Director General Willie Walsh. Photo source: IATA.

Further commenting on October’s results, IATA’s director general said that people assign a high value to the freedom to travel.

“The strong demand we’ve seen all year confirms that and aviation is committed to ensuring that people can continue to enjoy this freedom. To do that in the long-term, we must also meet our commitment to achieve net zero carbon emissions by 2050,” Walsh said.

Last month, the Third Conference on Aviation Alternative Fuels (CAAF/3) agreed a global framework to promote Sustainable Aviation Fuel (SAF) production with the aim that aviation fuel in 2030 is 5 percent less carbon intensive than fossil fuel used today.

Now, governments need to support that target by immediately putting in place policies to stimulate SAF production, according to IATA’s director general.

“It bears repeating: last year, every drop of SAF that was produced was purchased. The same thing will occur this year. But, with a few notable exceptions, governments are not living up to their obligations to ensure SAF is plentiful and affordable to support the industry’s energy transition,” said Walsh.