The International Air Transport Association (Iata) reported a 5.8 per cent increase in passenger demand for Middle Eastern carriers in July compared to the previous year. Globally, demand for air travel surged by 8.0 per cent in July 2024, with available seat kilometres (ASK) up by 7.4 per cent. Despite the CrowdStrike IT outage on 19 July, passenger demand remained strong, reaching an all-time high for the industry. The load factor was at its practicable maximum, highlighting the reliance on air travel for both leisure and business purposes.
In the air cargo sector, Middle Eastern carriers experienced a 14.7 per cent increase in demand in July, fuelled by maritime tensions and an e-commerce boom. These airlines accounted for 13.5 per cent of global cargo traffic, handling a significant portion of the market. The Middle East–Europe trade lane saw a notable 32.2 per cent growth, while demand on the Middle East-Asia route increased by 15.9 per cent. With a 13.6 per cent global increase in cargo tonne-kilometers, airlines in the region expanded their air cargo capacity by 4.4 per cent year-on-year.
Iata’s director-general Willie Walsh emphasized the importance of resolving supply chain issues to meet the growing demand for air travel. As the summer season winds down, the aviation industry faces challenges in deploying capacity effectively due to ongoing supply chain bottlenecks. Walsh highlighted the critical role of aviation in reuniting families, enabling exploration, and driving commerce. The urgent need for manufacturers and suppliers to address supply chain disruptions is essential to ensure accessibility and affordability of air travel for all passengers.
International passenger demand rose by 10.1 per cent in July compared to the previous year, with capacity increasing by 10.5 per cent. However, the load factor experienced a slight decrease to 85.9 per cent. Domestic demand also saw growth, rising by 4.8 per cent year-on-year. Despite a 2.8 per cent increase in capacity, the load factor for domestic flights improved to 86.1 per cent. Overall, all regions showed robust growth in international passenger markets, indicating a return to long-term growth trends following the post-pandemic bounce back.
The air cargo industry continues to experience record-high demand, with strong growth across all regions. Global trade expansion, e-commerce growth, and constraints in maritime shipping capacity have contributed to the success of the air cargo business. With the peak season approaching, airlines are expected to navigate political and economic uncertainties to meet the rising demand for air cargo services. Walsh expressed optimism for a successful year ahead in air cargo, with airlines demonstrating flexibility to adapt to emerging demand trends and challenges in the market.
