Global Air Passenger Demand Surpasses Expectations in 2024

The International Air Transport Association (IATA) has announced that 2024 saw unprecedented growth in air passenger demand, surpassing pre-pandemic levels. Full-year traffic for 2024 rose by 10.4%, with total capacity increasing by 8.7%.

This growth marked a significant achievement, as it was 3.8% higher than 2019, the year before the COVID-19 pandemic.

The surge in demand was primarily driven by international markets, which experienced a 13.6% increase in traffic compared to 2023.

Domestic markets also saw robust growth, with a 5.7% increase in traffic for the year.

December 2024 was a particularly strong month for air travel, with an 8.6% year-on-year increase in global demand. International demand rose by 10.6%, while domestic demand grew by 5.5%. This performance concluded the year on a high note, with the global load factor reaching a record 84%.

Looking ahead, IATA expects air passenger demand to continue growing at a more moderate pace of 8.0% in 2025.

However, Walsh highlighted two key challenges for the industry: safety and sustainability. Following a tragic accident in Washington, Walsh emphasized the need for continuous improvements in aviation safety.

On the environmental front, Walsh underscored the airline industry's commitment to achieving net-zero carbon emissions by 2050.

Despite investments in Sustainable Aviation Fuel (SAF), the supply remains limited, and costs need to be reduced. Governments can help by prioritizing renewable fuel production and redirecting subsidies from fossil fuel extraction to support renewable energy initiatives.

In terms of regional performance, the Asia-Pacific region led the way with a 16.9% increase in traffic, followed by Europe, which saw an 8.7% rise.

North America and Latin America experienced more modest gains, with growth rates of 4.6% and 7.8%, respectively. African airlines recorded a strong 13.2% traffic increase, although their load factor remained the lowest among regions at 74.9%.

Domestic markets also saw impressive performance in 2024, with China leading the way with a 12.3% growth in domestic passenger traffic. India, Japan, and the United States also posted stable growth, while Brazil and Australia saw more moderate increases.

In conclusion, the airline industry rebounded strongly in 2024, driven by both international and domestic demand.

While challenges remain, particularly in safety and sustainability, the industry is set to continue its growth trajectory into 2025, contributing to economic development and global connectivity.