In March, Middle Eastern airlines saw a significant increase in passenger demand, with a 10.8 per cent year-on-year surge, while the global aviation sector recorded a 13.9 per cent growth. According to data from the International Air Transport Association (Iata), regional carriers reported the strongest growth at 19.9 per cent, with a notable expansion in the Middle East–Europe market. Capacity also increased by 10.6 per cent year-on-year in March.
Iata’s data revealed that total demand globally, measured in revenue passenger kilometers (RPKs), increased by 13.8 per cent compared to March 2023. Total capacity, measured in available seat kilometers (ASK), rose by 12.3 per cent year-on-year, with a load factor of 82 per cent. Willie Walsh, Iata’s director-general, stated that the demand for travel remains strong, indicating a continuation into the peak northern summer travel season.
While international passenger demand spiked by 18.9 per cent compared to March 2023, domestic passenger demand also rose by 6.6 per cent. International capacity increased by 18.8 per cent year-on-year, with an improved load factor of 81.6 per cent. On the other hand, domestic capacity saw a 3.4 per cent rise year-on-year, with a load factor of 82.6 per cent. Air cargo demand surged by 10.3 per cent, contributing to a strong first quarter performance, surpassing the already impressive 2021 first quarter performance during the Covid crisis.
Walsh emphasized the importance of having the capacity to meet the growing travel demand, ensuring a seamless travel experience for passengers. He highlighted the need for resolving supply chain issues and ensuring that airports and air traffic management are fully staffed and operating efficiently. While airlines are prepared to assist customers during operational issues, Walsh expressed frustration at airlines bearing the cost of delays and cancellations caused by poor preparation elsewhere in the value chain.
Global cross-border trade and industrial production have shown moderate increases, with a 1.2 per cent and 1.6 per cent growth respectively in February. The manufacturing output Purchasing Managers’ Index (PMI) rose to 51.9 in March, indicating expansion in the industry. However, the new export orders PMI remained slightly below the growth threshold at 49.5, suggesting potential challenges in meeting growth expectations. Overall, 2024 is anticipated to be a solid year for air cargo as global trade and production continue to trend upward.
