Air Travel Demand Soars 8.6% in August as the Market Heats Up, Says IATA

The market for air travel is “hot” and “airlines are doing a great job” at meeting the growing demand for travel, according to the International Air Transport Association (IATA) on Thursday.

Data for August 2024 reveals that global passenger demand, measured in revenue passenger kilometers (RPK), increased by 8.6 percent compared to August 2023. Total capacity, measured in available seat kilometers (ASK), rose by 6.5 percent year-on-year, while the load factor reached a record high of 86.2 percent (+1.6 percentage points compared to August 2023).

“Efficiency gains have driven load factors to record levels, while the 6.5 percent capacity increase demonstrates resilience amid ongoing supply chain issues and infrastructure challenges,” said IATA Director General Willie Walsh.

International demand also surged by 10.6 percent compared to August 2023, with capacity up 10.1 percent year-on-year. The load factor for international flights increased to 85.7 percent (+0.4 percentage points compared to August 2023).

In domestic markets, demand rose by 5.6 percent compared to August 2023, with capacity increasing by 1.2 percent. The domestic load factor reached 86.9 percent (+3.6 percentage points compared to August 2023).

IATA noted that all regions experienced growth in international passenger markets in August 2024 compared to the same month in 2023.

“Ticket sales from May to July for travel in August and September showed a 6.6 percent year-on-year increase, indicating further strong growth this year,” the association said.

Regarding domestic demand, IATA highlighted significant growth in all key markets, particularly in China.

“Domestic ticket sales for August and September grew by 4.3 percent year-on-year, supporting solid growth prospects for the remainder of the year.”

IATA: Infrastructure capacity crunch approaching

Looking ahead, IATA Director General Willie Walsh cautioned that continued strong demand growth suggests the industry may be “fast approaching an infrastructure capacity crunch,” potentially limiting connectivity and choices for passengers and businesses.

“If governments want to maximize the benefits of aviation, they must make bold decisions to ensure adequate infrastructure capacity,” Walsh emphasized, adding that both airports and air navigation service providers need to optimize their existing resources.

“In particular, the variance in declared capacity among airports with similar infrastructure must be addressed, with underperforming airports learning from the best,” he added. “The industry cannot afford to under-utilize the airport infrastructure currently in place.”