A new data released by the International Air Transport Association (IATA) has shown that airlines experienced a 69.5 per cent rise in August as measured in Revenue Passenger Kilometers (RPKs) versus a year ago.
The report showed that while there was continued momentum in the air travel recovery, August 2022, capacity was up 45.3 per cent and load factor climbed 10.8 percentage points to 75.9 per cent, the lowest among regions.
According to the body, International traffic between Africa and neighboring regions is close to pre-pandemic levels.
Domestic Passenger Markets
At the global level, IATA’s report indicated that traffic is now at 73.7 per cent of pre-crisis levels, adding “Domestic traffic for August 2022 was up 26.5 per cent, compared to the year-ago period.
Total August 2022 domestic traffic was at 85.4 per cent of the August 2019 level. International traffic rose by 115.6 per cent versus August 2021 with airlines in Asia delivering the strongest year-over-year growth rates. August 2022 international RPKs reached 67.4 per cent of August 2019 levels”.
Commenting on the development, Willie Walsh, IATA’s Director General said, “The Northern Hemisphere peak summer travel season finished on a high note. Considering the prevailing economic uncertainties, travel demand is progressing well. And the removal or easing of travel restrictions at some key Asian destinations, including Japan, will certainly accelerate the recovery in Asia. The mainland of China is the last major market retaining severe COVID-19 entry restrictions.”
Air passenger market in detail
– August 2022
Aviation is committed to decarbonizing by 2050, in line with the Paris agreement. And the energy transition required to achieve this must be supported by government policies. That is why there is such great anticipation for the 41st Assembly of the International Civil Aviation Organization to reach agreement on a Long-Term Aspirational Goal on aviation and climate change.
The near grounding of aviation during the pandemic highlighted how important aviation is to the modern world. And we will take a giant step towards securing the long-term social and economic benefits of sustainable global connectivity, if the policy-vision of governments is aligned with the industry’s commitment to net zero by 2050,” said Walsh.
In terms of cargo, IATA’s released August 2022 data for global air cargo markets, which demonstrated the industry’s resilience amid economic uncertainties indicated that global demand, measured in cargo tonne-kilometers (CTKs), fell 8.3 per cent, compared to August 2021.
This was a slight improvement on the year-on-year decline of 9.7 per cent seen in July
The body further explained that capacity was 6.3 per cent above August 2021. This is a significant expansion over the 3.6 per cent year-on-year increase in July..
Listing factors that should be noted in the operating environment, it added that “Global goods trade expanded slightly in August and the additional easing of COVID-19 restrictions in China will positively impact cargo markets. While maritime will be the main beneficiary, air cargo will also receive a boost from these developments.”
While noting that Inflation levels in G7 countries slowed for the first time since November 2020, it added that oil prices stabilized in August and the jet fuel crack spread fell from a peak in June.
“Air cargo continues to demonstrate resilience. Cargo volumes, while tracking below the exceptional performance of 2021, have been relatively stable in the face of economic uncertainties and geopolitical conflicts. Market signals remain mixed. August presented several indicators with upside potential: oil prices stabilized, inflation slowed and there was a slight expansion in goods traded globally. But the decrease in new export orders in all markets except the US tells us that developments in the months ahead will need to be watched carefully,” said Walsh,
“African airlines saw cargo volumes increase by 1.0 per cent in August 2022 compared to August 2021. This was a significant improvement on growth recorded the previous month. Capacity was 1.4 per cent below August 2021 levels”, the DG explained.
IATA is a trade association of the world’s airlines founded in 1945. IATA has been described as a cartel since, in addition to setting technical standards for airlines, IATA also organized tariff conferences that served as a forum for price fixing.
Consisting in 2016 of 290 airlines, primarily major carriers, representing 117 countries, the IATA’s member airlines account for carrying approximately 82 per cent of total available seat miles air traffic.
About the Author
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
