IATA Reports Record-Breaking Growth in 2024 Global Air Travel Demand, Set to Continue in 2025

Passenger traffic in 2024 surged by 10.4%, surpassing pre-pandemic levels, with all regions showing growth, and airlines maintaining record-high efficiency despite capacity constraints.

The International Air Transport Association (IATA) has announced its 2024 full-year and December passenger market performance, revealing a significant 10.4% increase in global demand compared to 2023. This marks a record recovery, with passenger traffic surpassing pre-pandemic levels (2019) by 3.8%. The industry has also achieved remarkable efficiency, with the overall load factor reaching a record 83.5% for the full year.

Full-Year Traffic and Record Efficiency

IATA's report showed that the total capacity for the year, measured in available seat kilometers (ASK), increased by 8.7% in 2024. This rise in capacity was met with a strong demand, particularly in international markets. International traffic for 2024 rose by 13.6%, and domestic traffic saw a 5.7% increase, illustrating the global recovery in air travel.

December 2024 provided a strong finish to the year, with overall demand rising by 8.6% year-on-year and capacity expanding by 5.6%. International demand rose by 10.6%, and domestic demand increased by 5.5%. The December load factor reached an impressive 84%, marking a new high for the month.

Global Aviation Growth: Regional Performance Highlights

In 2024, international traffic surpassed pre-pandemic levels, with full-year international traffic growing by 0.5% compared to 2019, despite capacity being 0.9% lower than 2019 levels. Asia-Pacific airlines led the way, posting a 26.0% rise in international traffic compared to 2023, with capacity expanding by 24.7%. Despite this strong growth, international traffic in the region remains 8.7% below 2019 levels, signaling potential for further growth.

European carriers saw a 9.7% increase in full-year traffic, with a load factor increase of 0.4 percentage points to 84.1%. Middle Eastern airlines experienced a 9.4% rise in traffic, while North American airlines had a more modest 6.8% increase. Latin American airlines reported a 14.4% rise in traffic, the second-largest growth among regions, and African airlines saw their traffic increase by 13.2%, with the region reaching a record load factor of 74.5%, though still the lowest among regions.

Domestic Markets: China Leads with Robust Growth

Domestic markets also showed record growth, with China leading the way with a 12.3% increase in traffic over 2023. Other major domestic markets, including Japan and India, saw stable growth, with India’s load factor remaining high despite a slight drop in capacity. Japan's market saw growth of 3.2% in RPKs, despite a slight reduction in capacity.

IATA Director General’s Remarks and Future Outlook

Willie Walsh, Director General of IATA, emphasized the strong growth in demand, stating, “2024 made it absolutely clear that people want to travel. With 10.4% demand growth, travel reached record numbers domestically and internationally. Airlines met that strong demand with record efficiency.” He also acknowledged the industry's success in meeting heightened demand despite challenges like supply chain constraints that limited capacity growth.

Looking ahead to 2025, Walsh forecasted continued demand growth at a moderated pace of 8.0%, more in line with historical averages. However, he also highlighted significant challenges for the aviation industry, including safety concerns and the industry's commitment to achieving net-zero carbon emissions by 2050.

Sustainability and SAF Investments

Despite airlines investing record amounts in Sustainable Aviation Fuel (SAF) in 2024, Walsh pointed out that less than 0.5% of the industry's fuel needs were met with SAF, as production remains limited and costs high. He urged governments to prioritize renewable fuel production and support the growth of SAF by reallocating some subsidies from fossil fuel extraction to renewable energy capacity.

Conclusion

IATA’s 2024 passenger market performance report highlights a year of robust recovery for the global aviation industry, with record demand and record efficiency. The results suggest that air travel is set for continued growth, particularly in international and domestic markets, despite challenges related to sustainability and capacity. The industry's efforts to achieve net-zero carbon emissions by 2050 will be crucial as airlines navigate the future of air travel.