IATA: Passenger Demand Jumps 21.5% in February

Global passenger demand for air travel in February, measured in revenue passenger kilometers (RPKs), was up 21.5 percent year-on-year, the International Air Transport Association (IATA) said on Thursday.

According to the association, total capacity in February, measured in available seat kilometers (ASK), was up 18.7 percent year-on-year and the load factor was 80.6 percent (+1.9ppt compared to February 2023).

“The strong start to 2024 continued in February with all markets except North America reporting double-digit growth in passenger traffic,” said IATA Director General Willie Walsh.

Indicatively, Asia-Pacific airlines saw a 53.2 percent year-on-year increase in demand. Capacity increased 52.1 percent year-on-year and the load factor rose to 84.9 percent (+0.6ppt compared to February 2023), the highest among all regions.

Also, European carriers’ saw a 15.9 percent year-on-year increase in demand. Capacity increased 16 percent year-on-year, and the load factor was 74.7 percent (flat compared to February 2023).

“There is good reason to be optimistic about the industry’s prospects in 2024 as airlines accelerate investments in decarbonization and passenger demand shows resilience in the face of geopolitical and economic uncertainties,” Walsh said.

International demand exceeds pre-pandemic levels

All regions showed double digit growth for international passenger markets in February 2024 compared to the same month in 2023 (+0.9% compared to February 2023).

International demand rose 26.3 percent compared to February 2023; capacity was up 25.5 percent year-on-year and the load factor improved to 79.3 percent (+0.5ppt on February 2023).

“For the first time, demand for international services exceeded pre-pandemic levels,” IATA said.

However, according to IATA, performance on international level is skewed by February 2024 being a leap-year with an extra day compared to February 2023..

“This slightly exaggerates growth in both demand and capacity to the positive,” IATA said.

Meanwhile, domestic demand rose 15 percent compared to February 2023; capacity was up 9.4 percent year-on-year and the load factor was 82.6 percent (+4.0ppt compared to February 2023).

Domestic demand growth was led by China (+35.1 percent compared to February 2023) which benefitted from unrestricted Lunar New Year travel.

IATA warns against ‘tax grabs’

Willie Walsh, Director General ,IATA. Photo source: IATA.

Moreover, IATA’s Director General warned politicians against imposing “cash grab” taxes in Europe that could make travel prices rise.

“It is critical that politicians resist the temptation of cash grabs with new taxes that could destabilize this positive trajectory and make travel more expensive,” Walsh said.

“In particular, Europe is a worry as it seems determined to lock in its sluggish economic recovery with uncompetitive tax proposals.”