IATA: Air cargo volumes up 14.1% in June while passenger traffic rises by over 9%
Geneva, Switzerland: The International Air Transport Association (IATA) reported air cargo volumes in June 2024 were up 14.1 percent, contributing to the industry’s exceptional first half-year performance with volumes exceeding 2023, 2022, and even the record-breaking 2021 levels.
Global passenger traffic is also continuously growing with June record up 9.1 percent, measured in revenue passenger kilometers (RPK). The June load factor was 85.0% (+0.5 percentage points (ppt) compared to June 2023.
IATA said the total cargo demand, measured in cargo ton-kilometers (CTKs), rose by 14.1% compared to June 2023 levels (15.6% for international operations). This is the seventh consecutive month of double-digit year-on-year growth.
Capacity, measured in available cargo ton-kilometers (ACTKs), increased by 8.8% compared to June 2023 (10.8% for international operations).
Total half-year (H1) demand increased by 13.4% compared to H1 2023, by 4.3% compared to H1 2022, and by 0.02% compared to H1 2021.
“Air cargo demand surged in June. Strong growth across all regions and major trade lanes combined for a record-breaking first-half performance in terms of CTKs. Maritime shipping constraints and a booming e-commerce sector are among the strongest growth drivers. Meanwhile, the sector has remained largely impervious to ongoing political and economic challenges, and the US customs crackdown on e-commerce deliveries from China. Air cargo looks to be on solid ground to continue its strong performance into the second half of 2024,” said Willie Walsh, IATA’s Director General.
Several factors in the operating environment should be noted:
- In June the Purchasing Managers Index (PMI) for global manufacturing output indicated expansion (52.3) while the new export orders PMI registered a small contraction, falling below the critical 50-point benchmark to 49.3.
- Global cross-border trade expanded 0.1% month-on-month in May while industrial production stayed level compared to the previous month.
- Inflation was a mixed picture in June. In the EU and Japan, inflation rates stayed roughly constant compared to the previous month at 2.6% and 2.8% respectively, while dropping in the US to 3.0%. In contrast, China’s inflation rate remained near zero (0.3%) reflecting weak domestic demand amid high unemployment, slow income growth, and a crisis in the real estate sector, a trend that has persisted since 2023.
Bullish outlook for passenger demand
IATA pointed out total passenger demand, measured in revenue passenger kilometers (RPK), was up 9.1% compared to June 2023. Total capacity, measured in available seat kilometers (ASK), was up 8.5% year-on-year. The June load factor was 85.0% (+0.5 percentage points (ppt) compared to June 2023).
International demand rose 12.3% compared to June 2023. Capacity was up 12.7% year-on-year and the load factor improved to 85.0% (-0.3ppt on June 2023).
Domestic demand rose 4.3% compared to June 2023; capacity was up 2.1% year-on-year and the load factor was 85.0% (+1.7ppt compared to June 2023).
“Demand grew across all regions as the peak Northern summer travel season began in June. And with overall capacity growth lagging demand we saw a very strong average load factor of 85% achieved in both domestic and international operations. Operating with such high load factors is both good and challenging. It makes it even more important for all the stakeholders to operate with equal levels of efficiency to minimize delays and get travelers to their destinations on schedule,” said the IATA Director General.
“As the Olympic Games unfold in Paris there is pride across the aviation industry for its continuing role in supporting the Olympic story by bringing many of the athletes, fans, and officials together. It is a great reminder of how aviation transforms our very big world into a global community. We wish France every success as the host of the games and cheer all the athletes who will demonstrate the best of human endeavor over the next weeks,” he added.
Regional Breakdown – International Passenger Markets
All regions showed strong growth for international passenger markets in June 2024 compared to June 2023.
Asia-Pacific airlines’ growth remained strong, with a 22.6% year-on-year increase in demand. Capacity increased 22.9% year-on-year and the load factor was 83.0% (-0.2ppt compared to June 2023). The Africa-Asia route was the fastest expanding regional pair, growing 38.1%.
European carriers saw a 9.1% year-on-year increase in demand. Capacity increased 9.8% year-on-year, and the load factor was 87.4% (-0.6ppt compared to June 2023).
Middle Eastern airlines saw a 9.6% year-on-year increase in demand. Capacity increased 9.4% year-on-year and the load factor was 79.7% (+0.1ppt compared to June 2023).
North American carriers saw a 6.6% year-on-year increase in demand. Capacity increased 8.6% year-on-year, and the load factor was 88.7% (-1.6 ppt compared to June 2023), the highest among regions.
Latin American airlines saw a 15.3% year-on-year increase in demand. Capacity climbed 15.6% year-on-year. The load factor was 85.1% (-0.2ppt compared to June 2023).
African airlines saw a 16.9% year-on-year increase in demand. Capacity was up 5.8% year-on-year. The load factor rose to 77.0% (+7.4ppt compared to June 2023). This was the largest improvement in load factor among all regions.