Global air passenger demand reaches record high in 2024

December ended on a high note

The International Air Transport Association (IATA) has revealed that global air passenger demand in 2024 reached unprecedented levels, marking a significant milestone for the aviation industry. According to IATA’s latest full-year and December 2024 passenger market performance report, air traffic grew by 10.4% compared to 2023, surpassing pre-pandemic levels by 3.8%.

Total traffic, measured in Revenue Passenger Kilometres (RPKs), increased significantly throughout the year, driven by strong demand in both international and domestic markets.

An 8.7% rise in capacity, measured in available seat kilometres (asks), accompanied this surge in demand, which resulted in a record-breaking passenger load factor of 83.5%. This indicates that, on average, 83.5% of available seats across all airlines were filled, highlighting the efficiency with which airlines could accommodate the growing demand.

International and domestic market performance

International traffic saw the most substantial growth, with demand up 13.6% compared to 2023. Airlines responded by increasing capacity by 12.8%, contributing to the record-high load factor of 83.2% for international flights. Domestic air traffic also performed well, with a 5.7% increase in demand and a 2.5% rise in capacity, leading to a decisive overall load factor of 84.0%.

December 2024 ended the year on a high note, with a year-on-year increase in global demand of 8.6%. International traffic led the charge with a 10.6% rise, while domestic demand saw a 5.5% growth. The global passenger load factor for December was 84%, marking a new record for the month.

Regional highlights

Asia-Pacific airlines enjoyed the most substantial year-on-year growth in international traffic, with a remarkable 26.0% increase over 2023. Despite this, RPKs in the region were still 8.7% below pre-pandemic (2019) levels, indicating that there is still substantial potential for further growth. European carriers experienced a more modest rise of 9.7%, with capacity increasing by 9.2%. Latin American airlines also posted impressive results, with a 14.4% increase in traffic and a high load factor of 84.8%.

The Middle East saw a 9.4% rise in traffic, while North American airlines reported a 6.8% increase. Meanwhile, African carriers experienced a 13.2% growth in demand, although their load factor remained the lowest among all regions at 74.9%. Despite this, the increase in the African load factor marked a record high for the continent.

Domestic markets

Regarding domestic markets, China stood out as the top performer, recording a 12.3% increase in demand over the previous year. India also saw strong domestic growth, with a 6.0% rise in traffic and a high load factor of 86.4%, the highest among the major domestic markets. Other countries like Japan and Brazil also saw stable growth, while Japan’s capacity slightly contracted by 0.3%.

The United States recorded a 3.7% increase in domestic traffic, with a solid load factor of 84.1%, while Australia’s domestic market grew by 3.6%. However, Japan’s domestic market experienced a slight decline in load factor, down 0.3 percentage points to 78.0%.

Challenges

Looking ahead to 2025, IATA expects air travel demand to continue growing, albeit at a more moderate pace of 8.0%, which aligns more closely with historical trends. However, the industry faces challenges, particularly in ensuring safety, as highlighted earlier this week by the tragic accident in Washington. IATA Director General Willie Walsh emphasised that safety remains the top priority and that the industry will continue to work tirelessly to enhance safety measures.

Another significant challenge is the aviation sector’s commitment to achieving net-zero carbon emissions by 2050. In 2024, airlines invested record amounts in Sustainable Aviation Fuel (SAF), but supply remains limited, with SAF meeting less than 0.5% of the industry’s fuel needs. Walsh called on governments to support the production of renewable fuels and allocate subsidies for renewable energy to help reduce costs and stimulate the SAF market.

Image: Looking ahead to 2025, IATA expects air travel demand to continue growing. Credit: Adrian Agawin

Last Updated on 1 month by Arnold Pinto