SAF volumes growing but still missing opportunities

The International Air Transport Association (IATA) announced estimates for Sustainable Aviation Fuel (SAF) production.

•    In 2023, SAF volumes reached over 600 million liters (0.5Mt), double the 300 million liters (0.25 Mt) produced in 2022.

•    SAF accounted for 3% of all renewable fuels produced, with 97% of renewable fuel production going to other sectors.

•    In 2024 SAF production is expected to triple to 1.875 billion liters (1.5Mt), accounting for 0.53% of aviation’s fuel need, and 6% of renewable fuel capacity. The small percentage of SAF output as a proportion of overall renewable fuel is primarily due to the new capacity coming online in 2023 being allocated to other renewable fuels.

 

“The doubling of SAF production in 2023 was encouraging as is the expected tripling of production expected in 2024. But even with that impressive growth, SAF as a portion of all renewable fuel production will only grow from 3% this year to 6% in 2024. This allocation limits SAF supply and keeps prices high. Aviation needs between 25% and 30% of renewable fuel production capacity for SAF. At those levels aviation will be on the trajectory needed to reach net zero carbon emissions by 2050. Until such levels are reached, we will continue missing huge opportunities to advance aviation’s decarbonization. It is government policy that will make the difference. Governments must prioritize policies to incentivize the scaling-up of SAF production and to diversify feedstocks with those available locally,” said Willie Walsh, IATA’s Director General. 

CAAF/3 outcome 

Passenger Demand Recovery Continues On Track in October

 The International Air Transport Association (IATA) announced that the ongoing recovery in passenger demand continued in October. 

•    Total traffic in October 2023 (measured in revenue passenger kilometers or RPKs) rose 31.2% compared to October 2022. Globally, traffic is now at 98.2% of pre-COVID levels.

•    Domestic traffic for October rose 33.7% versus October 2022, driven by the triple-digit percentage growth recorded in China, and was 4.8% above the October 2019 results. 

•    International traffic climbed 29.7% compared to the same month a year ago. All markets saw double-digit percentage gains year on year. International RPKs reached 94.4% of October 2019 levels. 

“October’s strong result brings the industry ever closer to completing the post-pandemic traffic recovery. Domestic markets remain above pre-COVID levels. International demand is recovering, but more slowly. In particular, Asia Pacific carriers’ international demand is 19.5% behind 2019. This could reflect the late lifting of COVID restrictions in p
arts of the region as well as commercial developments and political tensions, ” said Willie Walsh, IATA’s Director General. 

International Passenger Markets

Asia-Pacific airlines saw an 80.3% increase in October 2023 traffic compared to October 2022, continuing to lead the regions. Capacity climbed 72.5% and the load factor increased by 3.6 percentage points to 82.9%. 

European carriers’ October 2023 traffic rose 16.1% versus October 2022. Capacity increased 14.5%, and load factor edged up 1.2 percentage points to 85.1%.

Middle Eastern airlines posted a 24.1% rise in October 2023 traffic compared to a year ago. Capacity rose 22.2% and load factor climbed 1.2 percentage points to 80.6%. There was little impact at the regional and global levels from the Israel-Hamas war, despite reduced airline operations to/from Israel.

North American carriers had a 17.5% traffic rise in October 2023 versus the 2022 period. Capacity also increased 17.5%, and load factor was stable at 83.9%.

Latin American airlines’ traffic rose 21.2% compared to the same month in 2022. October capacity climbed faster -- up 22.3% --  pushing load factor down 0.8 percentage points to 85.3%, highest among the regions.

African airlines saw a 25.3% traffic increase in October 2023 versus a year ago. October capacity was up 32.4% causing load factor to decline 4.0 percentage points to 70.3%, lowest among the regions.

Air Cargo Demand up 3.8% in October says IATA

The International Air Transport Association (IATA) released data for October 2023 global air cargo markets indicating the third consecutive month of stronger year-on-year demand.

Global demand, measured in cargo tonne-kilometres (CTKs*), increased by 3.8% compared to October 2022. For international operations, the demand lagged slightly at 3.5%. 

Capacity, measured in available cargo tonne-kilometres (ACTKs), was up 13.1% compared to October 2022 (11.1% for international operations). This was largely related to the growth in belly capacity. International belly capacity, for example, rose 30.5% year-on-year on the strength of passenger markets.

Several factors in the operating environment should be noted:

•    Economic activities slowed in October. With the Purchasing Managers’ Index for manufacturing output and export orders for major economies (excluding the US) remaining below the critical 50 mark, there is a clear marker for economic challenges ahead.

•    Inflation in major advanced economies continued to ease from its peak in terms of Consumer Price Index (CPI), reaching between 3% and 4% for the US and for the EU respectively, in October. China’s CPI, however, indicated deflation for the second time this year, raising concerns of an economic slowdown.

•    Global trade reversed its downward trajectory and stabilized in September. Although below its 2022 peak, global cross-border trade is more than 5% above pre-pandemic levels.

•    After a continuous 17-month decline, cargo yields ticked-up in September and continued into October with a 2.6% month-on-month gain, remaining well-above pre-pandemic levels.

“Demand for air cargo was up 3.8% in October. That marks three consecutive months of year-on-year growth, placing air cargo on course to end 2023 on a much stronger footing than it began the year. Recovering demand, slightly stronger yields and the uptick in trade are all good news. But with demand still 2.4% below pre-pandemic levels, and much uncertainty remaining over the trajectory of the global economy, optimism must be balanced with caution. Nonetheless, a continued strong peak year-end season will certainly help the sector to manage through whatever turns the global economy might take in 2024,” said Willie Walsh, IATA’s Director General.

September passenger demand provides solid end to third quarter

The International Air Transport Association (IATA) announced that the strong post-pandemic passenger traffic trend continued in September. • Total traffic in September 2023 (measured in revenue passenger kilometers or RPKs) rose 30.1% compared to September 2022. Globally, traffic is now at 97.3% of pre-COVID levels. • Domestic traffic hit a new high for the month of September, as traffic rose 28.3% versus September 2022 and exceeded the September 2019 level by 5.0%. • International traffic climbed 31.2% compared to the same month a year ago. All markets saw double-digit percentage gains year on year. International RPKs reached 93.1% of September 2019 levels. “The third quarter of 2023 ended on a high note, with record domestic passenger demand for the month of September and continued strong international traffic,” said Willie Walsh, IATA’s Director General.

 

Air passenger market in detail - September 2023

September 2023 (% year-on-year) World share1 RPK ASK PLF (%-pt)2 PLF (level)3 Total Market 100.0% 30.1% 28.8% 0.8% 82.6% Africa 2.1% 24.6% 27.2% -1.5% 73.1% Asia Pacific 22.1% 87.9% 75.5% 5.3% 80.0% Europe 30.8% 13.8% 12.8% 0.8% 86.0% Latin America 6.4% 15.7% 14.3% 1.1% 83.9% Middle East 9.8% 26.1% 22.8% 2.2% 81.6% North America 28.8% 9.7% 12.5% -2.1% 83.0%

1% of industry RPKs in 2022    2Change in load factor    3Load factor level

Air cargo demand up nearly 2% in September.

The International Air Transport Association, the organisation that represents some 300 airlines comprising 83% of global air traffic has released data for September 2023 global air cargo markets, showing continuing demand recovery. 

• Global demand, measured in cargo tonne-kilometers (CTKs*), increased by 1.9% compared to September 2022 levels (+1.6% for international operations). 

• Capacity, measured in available cargo tonne-kilometers (ACTKs), was up 12.1% compared to September 2022 (+11.0% for international operations). Growth was largely related to international belly capacity which rose 31.5% year-on-year as airlines scaled up operations to meet peak-northern summer travel season demand. 

• Several factors in the operating environment should be noted: 

    In September, both the manufacturing output Purchasing Managers Index or PMI (49.7) and new export orders PMI (47.7) saw a slight improvement to the previous month. They remained, however, below the critical 50-point threshold, indicating a continuing, but slightly slower, annual decline in global manufacturing production and exports.

    Global cross-border trade contracted for the fifth month in a row in August, decreasing 3.8% year-over-year. This reflects the cooling global macroeconomic environment. 

    Annual growth in US consumer prices stabilized in September at 3.7%, the same rate as in August. In Europe and Japan consumer price inflation slowed by 1.0 and 0.2 percentage points, respectively, to 4.9% and 3.0%, (also respectively). In China, deflation-fighting policy measures saw an annual rise in consumer prices of 0.1%.      

    In September, the average price of jet fuel was USD 131.0 per barrel, marking a 43.1% increase from the May 2023 price. Recouping some of this added cost from surcharges in September contributed to the first increase in air cargo yields since November 2022. 

"Air cargo eked out modest growth (1.9%) in September despite falling trade volumes and high jet fuel prices. That clearly shows the strength of air cargo’s value proposition. With the key export order and manufacturing PMIs hovering near positive territory, we can be cautiously optimistic for a strong year-end peak season," said Willie Walsh, IATA’s Director General.

.

September Regional Performance

Asia-Pacific airlines saw their air cargo volumes increase by 7.7% in September 2023 compared to the same month in 2022. This was a significant improvement in performance compared to August (+4.6%). Carriers in the region benefited from growth on three major trade lanes: Europe-Asia (+9.6%), Middle East-Asia (+7.0%) and Africa-Asia (+12.8%). Available capacity for the region’s airlines increased by 30.5% compared to September 2022 as more belly capacity came online from the passenger side of the business (a year ago, the key Asian markets of Japan and China were still largely under severe COVID-19 travel restrictions). 

North American carriers had the weakest performance in September, with a 2.2% decrease in cargo volumes. This was a decline in performance compared to August (-1.4%). Although contractions in the North America-Asia trade lane narrowed (from -4.3% in August to -1.8% in September) and the North America-Europe market stabilized its decline at (-2.5%) for the second month in a row. Carriers in the region did not benefit significantly. Capacity increased moderately by 0.2% compared to September 2022.

European carriers saw their air cargo volumes decline by 1.5% in September compared to the same month in 2022. This was a weaker performance than in August (-0.6%). Carriers in the region suffered from further contractions in the within Europe market (-5.7% in September vs -5.2% in August). Gains made from the expansion in the Middle East-Europe trade lane (+3.3% in September vs +0.5% in August) offset some declines from the within Europe performance. Capacity increased 4.7% in September 2023 compared to 2022.

Middle Eastern carriers had the strongest performance in September 2023, with a 2.5% year-on-year increase in cargo volumes. This was an improvement from the previous month’s performance (+1.3%). Carriers in the region benefited from growth in the Middle East–Asia (+7.0%) and Middle East–Europe markets (+3.3%). Capacity increased 16.1% compared to September 2022. 

Latin American carriers experienced a 2.3% increase in cargo volumes compared to September 2022. This was a significant decrease in performance compared to the previous month (+6.2%). Capacity in September was up 14.4% compared to the same month in 2022. 

African airlines saw their air cargo volumes decline by 0.1% in September 2023, despite the strong growth of demand on the Africa-Asia trade lane (+12.8%). This was an improvement in performance compared to August (-3.5%). Capacity was 2.7% above September 2022 levels. 

September 2023 (% year-on-year) World share1 CTK ACTK CLF (%-pt)2 CLF (level)3 Total Market 100.0% 1.9% 12.1% -4.4% 43.8% Africa 2.0% -0.1% 2.7% -1.2% 43.6% Asia Pacific 32.4% 7.7% 30.5% -9.9% 46.6% Europe 21.8% -1.5% 4.7% -3.1% 50.0% Latin America 2.7% 2.3% 14.4% -3.8% 31.9% Middle East 13.0% 2.5% 16.1% -5.6% 42.4% North America 28.1% -2.2% 0.2% -1.0% 39.2%

1% of industry CTKs in 2022   2year-on-year change in load factor   3Load Factor Level

Air Cargo Market Analysis (iata.org)

   * Please note that as of January 2020 onwards, we have clarified the terminology of the Industry and Regional series from ‘Freight’ to ‘Cargo’, the corresponding metrics being FTK (changed to ‘CTK’), AFTK (changed to ‘ACTK’), and FLF (changed to ‘CLF’), in order to reflect that the series have been consisting of Cargo (Freight plus Mail) rather than Freight only. The data series themselves have not been changed. 

•    IATA (International Air Transport Association) represents some 300 airlines comprising 83% of global air traffic.

Progress towards Aviation Industry’s Commitment to Passengers with Disabilities

                The International Air Transport Association (IATA) announced the results of its 2023 Global Passenger Survey (GPS) related to accessibility of air transport to passengers with disabilities, showing significant satisfaction levels among passengers who used special assistance services.

•    80% of travellers using special assistance services said that their expectations were met

"In 2019, the IATA Annual General Meeting adopted a resolution reflecting our members’ commitment to ensure that every traveller has access to safe, reliable and dignified travel. While we all have more work to do to support the needs of our passengers with disabilities, we believe this survey result demonstrates progress towards that commitment,” said Conrad Clifford, IATA Deputy Director General and Corporate Secretary.  

The survey also aligned with the airline experience that more travellers than ever are requesting assistance. With ageing populations in many key air transport markets, this trend is likely to continue, and aviation, like many other industries, will struggle to find the resources needed to cater to this important demographic.  

“As demand for special assistance grows, we will need to find more tailored ways to meet the needs of travellers with special needs. At present, a special assistance request is almost always met with wheelchair services. But the actual requirements of the traveller may be very different. The traveller may simply need help with wayfinding through crowded airports, or only have difficulty negotiating stairs, or may be totally mobile but visually impaired. We are working on ways to ensure that wheelchairs are available when needed as well as the right options for the diversity of traveller needs,” said Linda Ristagno, IATA’s Assistant Director for External Affairs.

Critical Need for Clear Information 

Image by StockSnap from Pixabay

The survey also highlighted website accessibility as an area for improvement. Twenty percent of travellers highlighted that improved website accessibility for booking and reservations should be a priority. 

Recognizing this, IATA has recently issued guidance material on ensuring airline websites provide easy access to all necessary information for travellers with disabilities. With the aim to ensure equal access for all passengers, this includes: 

•    developing a user-friendly gateway to the dedicated accessibility area of airlines' websites, 

•    clarifying the criteria for assistance entitlement, and 

•    emphasizing the importance of passengers requesting assistance early, preferably during the booking process. 

The guidance stresses a streamlined approach, enabling travellers with disabilities to access crucial information with just one click from the homepage. It provides best practices on creating clear and intuitive information pathways on airline websites for passengers with disabilities or reduced mobility, ensuring they have direct access to essential details about air travel arrangements and passenger rights.

“Clear information is crucial for anybody who wishes to travel. This is particularly relevant for persons with disabilities who require assistance and must carefully prepare their travel arrangements. While airlines have made strides in providing extensive guidance on their websites, there remains room for improvement, particularly in easing the search for specific information,” said Ristagno.

First integrated shopping to travel journey using digital identity demonstrated by IATA and partners

The International Air Transport Association (IATA) with industry partners successfully tested the first fully integrated digital identity travel experience, from shopping for flights to arrival, on a journey from London Heathrow (LHR) to Rome Fiumicino (FCO) with British Airways. 

“Our vision for future travel is fully digital and secured with biometric identification. While the technology exists to do this at each stage of a journey, linking these steps together has proven challenging. Today with our partners we showed that it is possible. This will open up a world of possibilities for simpler journeys in the future,” said Nick Careen, IATA’s Senior Vice President for Operations, Safety and Security. 

Today’s journey illustrated the potential of a future fully integrated digital travel experience leveraging biometrics with: 

•    Personalized Offers: This will be seen from the shopping experience where travelers will be able to receive personalized offers through all shopping channels. The LHR-FCO passenger shared their loyalty card data (stored as a verifiable credential in their smart phone’s digital wallet) with a travel agent. This enabled airlines using the New Distribution Capability (NDC) to make personalized offers through the travel agent channel. 

•    Simplified Orders: Once the traveller has chosen among the offers, an order is generated as a verifiable credential that can be stored in a digital wallet. No more Passenger Name Records (PNR), e-tickets or electronic miscellaneous documents are needed. All the information about the journey is stored in the verifiable credential, which can also be read as a QR code.

 

•    Effortless Travel Requirements Check: Many processes can be done long before the traveler gets to the airport. Along with the digital wallet, a digital passport (stored in the traveler’s digital wallet) will be a key enabler. By sharing the nationality data of the digital passport, passengers can confirm their travel document requirements. IATA’s Timatic solution supports this.

•    “Ready to Fly” – Simplifying and Securing Check-ins: The LHR-FCO traveler also chose to share their digital passport and order data with their airline, British Airways, to receive a confirmation that they are Ready-to-Fly and seat assignment via text message, being spared from manual data input. Traditional boarding passes may become optional if travelers are offered and accept a contactless experience at the airport. 

•    Contactless Airport Experiences: For travelers who choose to share their biometric data, storing your phone and proceeding hands-free (with your phone and your passport in your pocket or purse) through the airport will be possible. Biometric gates cleared the way for the LHR-FCO traveler through security, into lounges and onto the aircraft. 

 “As an airline, we are always innovating and looking at ways to make the customer journey as seamless as possible. We introduced biometric boarding on selected flights earlier this year and it has been a huge success with positive customer feedback. Working with IATA on enabling a fully integrated travel journey helps us build on that and shows us what could be possible in the future,” said Dirk John, British Airways Chief Information and Digital Officer.

The companies involved in the project include Accenture, Amadeus, Australian Border Force, AWS, Branchspace, British Airways, IDnow, Aeroporti di Roma, SICPA, Trip.com, and Verchaska. 

Speed and convenience top priority for passengers

The International Air Transport Association (IATA) announced the results of its 2023 Global Passenger Survey (GPS), showing that travellers continue to prioritize speed and convenience and are increasingly embracing biometrics and off-airport processes to deliver it.

Image by Markus Winkler from Pixabay

"Passengers have made it clear: they want to spend less time booking and move through the airport faster. And they are increasingly willing to use biometric data to complete more pre-departure tasks off airport to achieve this,” said Nick Careen, IATA’s Senior Vice President for Operations, Safety and Security. 

Planning and Booking 

Passengers want convenience when they plan their travel and when choosing where to depart. Their preference is to fly from an airport close to home, have all booking options and services available in one single place and pay with their preferred payment method. 

•    Proximity to the airport was passengers’ main priority when choosing their departure point (71%). This was more important than the ticket price (31%).  

•    A small majority passengers prefer to book directly with the airline (52%). Regardless of the booking channel used however, they would like to have complete visibility into the fare offer including easy access to optional products and services.

“Today’s travellers expect the same online experience as they get from major online retailers. The Modern Airline Retailing program responds to these needs. Whichever shopping channel passengers choose, airlines want to present them with all the options for even quicker and more convenient booking. When Modern Airline Retailing is fully realized, travellers will be able to track their air travel purchases with a single order number—simple and fast. It will also greatly simplify reaccommodating travellers in the event of a change or a disruption,” said Muhammad Albakri, IATA’s Senior Vice President for Financial Settlement and Distribution Services. 

Payment

•    Convenience was the main reason passengers chose a particular payment method (62%). Among seven different payment methods, the most popular was credit/debit card (73%), followed by digital wallet (18%) and bank transfer (18%). At the same time, there are very wide regional variations in credit card usage. Credit/debit cards are most popular in Latin America (85%), Europe (81%) and North America (74%) with the lowest preference being in Africa (57%). Digital wallet penetration most popular in the Asia Pacific region, where 41% of respondents cited this as the preferred option. The next highest market was Europe (15%) followed by the Middle East (14%). Among the regions, direct bank transfer was the most preferred payment method in Africa (36%), followed by the Middle East (21%). IATA has developed IATA Pay, an alternative method for travellers to pay for air tickets purchased online by directly debiting their bank account.

Passenger demand recovery seems to continues in August claims IATA

The International Air Transport Association (IATA) announced that the strong post-pandemic passenger traffic trend continued in August.  •    Total traffic in August 2023 (measured in revenue passenger kilometers or RPKs) rose 28.4% compared to August 2022. Globally, traffic is now at 95.7% of pre-COVID levels. •    Domestic traffic for August rose 25.4% versus August 2022 and was 9.2% above the August 2019 results. This is largely driven by Chinese domestic demand. •    International traffic climbed 30.4% compared to the same month a year ago. All markets saw double-digit percentage gains year on year. International RPKs reached 88.5% of August 2019 levels. “Demand for air travel performed well in August. For the year to date, international traffic has increased by 50% versus last year and ticket sales data show international bookings strengthening for travel in the last part of the year,” said Willie Walsh, IATA’s Director General.

August 2023 (% ch year-on-year) World share1 RPK ASK PLF (%-pt)2 PLF (level)3 Total Market  100.0% 28.4% 24.9% 2.3% 84.6% Africa 2.1% 24.8% 24.3% 0.3% 76.4% Asia Pacific 22.1% 73.4% 57.7% 7.4% 82.2% Europe 30.8% 11.6% 10.2% 1.1% 87.6% Latin America 6.4% 17.6% 14.5% 2.2% 85.1% Middle East 9.8% 26.4% 21.6% 3.2% 83.0% North America 28.8% 12.6% 13.0% -0.3% 85.8% 1% of industry RPKs in 2022   2year-on-year change in load factor   3Load Factor Level International Passenger Markets Asia-Pacific airlines saw a 98.5% increase in August 2023 traffic compared to August 2022, continuing to lead the regions. Capacity climbed 85.5% and the load factor increased by 5.5 percentage points to 84.2%.  European carriers’ August traffic rose 13.6% versus August 2022. Capacity increased 12.3%, and load factor edged up 1.1 percentage points to 86.8%. Middle Eastern airlines posted a 27.3% increase in August traffic compared to a year ago. Capacity rose 22.7% and load factor climbed 3.0 percentage points to 83.1%.  North American carriers had an 18.6% traffic rise in August 2023 versus the 2022 period. Capacity increased 17.5%, and load factor improved 0.8 percentage points to 87.7%, which was the highest among the regions for a third consecutive month. Latin American airlines’ traffic rose 26.4% compared to the same month in 2022. August capacity climbed 23.8% and load factor rose 1.7 percentage points to 86.1%.  African airlines saw a 26.1% traffic increase in August 2023 versus a year ago. August capacity was up 25.5% and load factor rose 0.4 percentage points to 76.2%. Domestic Passenger Markets August 2023 (% ch year-on-year) World share1    ​​ RPK ASK PLF (%-pt)2 PLF (Level)3 Domestic 41.9% 25.4% 21.1% 2.9% 83.5% Australia 1.0% 6.6% 10.7% -3.2% 82.3% Brazil 1.5% 7.8% 5.4% 1.8% 83.1% China P.R. 6.4% 93.6% 66.2% 11.2% 79.1% India 2.0% 23.2% 15.6% 5.1% 83.9% Japan 1.2% 8.7% -7.0% 12.0% 82.5% US 19.2% 9.6% 11.2% -1.2% 84.4% 1% of industry RPKs in 2022   2year-on-year change in load factor 3Load Factor Level Indian domestic RPKs rose 23.2% compared to a year ago and have now exceeded pre-pandemic levels for seven consecutive months. Japan’s domestic market was impacted by Typhoon Khanun which caused major air traffic disruptions in southern Japan. Domestic RPKs grew 8.7% year over year, down on the 13.4% growth recorded in the previous month.    August 2023 (% ch vs the same month in 2019) World share1 RPK ASK PLF (%-pt)2 PLF (level)3 Total Market  100.0% -4.3% -3.1% -1.1% 84.6% International 58.1% -11.5% -11.2% -0.3% 85.4% Domestic 41.9% 9.2% 12.1% -2.2% 83.5% ​​ The Bottom Line “Heading into the last quarter of the year, the airline industry is nearly fully recovered to 2019 levels of demand. The focus, however, has not been on getting back to a specific number of passengers or flights, but rather on meeting the demand by businesses and individuals for connectivity that was artificially suppressed for more than two years. Having seen the economic, social, and personal losses when airlines could not fly during the COVID-19 crisis, this industry is determined to secure a sustainable long-term future by achieving net zero carbon emissions by 2050. That was clearly evident at the first IATA World Sustainability Symposium where discussions focused on how to decarbonize. We know that our customers want a world in which they can enjoy the freedom to travel sustainably. This inaugural World Sustainability Symposium was a critical step in aligning policy makers, the aviation value chain and airlines with the concrete steps needed to deliver. And we will measure progress when we meet again in a year’s time,” said Walsh. View the August Air Passenger Market Analysis (pdf)

Air Cargo Demand up 1.5% in August, First Annual Growth Since February 2022

Air Cargo Demand up 1.5% in August, First Annual Growth Since February 2022

The International Air Transport Association (IATA) released data for August 2023 global air cargo markets, showing that year-on-year air cargo demand grew for the first time in 19 months. Global demand, measured in cargo tonne-kilometers (CTKs*), increased by 1.5% compared to August 2022 levels (1.2% for international operations).    Capacity, measured in available cargo tonne-kilometres (ACTKs), was up 12.2% compared to August 2022 (11.8% for international operations). This was largely related to belly capacity which rose 30% year-on-year as airlines ramped-up operations to meet peak-northern summer travel season demand. Several factors in the operating environment should be noted: In August, both the manufacturing output Purchasing Managers Index or PMI (49.4) and new export orders PMI (47.0) saw a slight improvement to the previous month. They remained, however, below the critical threshold represented by the 50 mark, indicating a continuing, if slower, annual decline in global manufacturing production and exports. Global cross-border trade contracted for the fourth month in a row in July, decreasing 3.2% year-over-year. This reflects the cooling demand environment and general macroeconomic conditions.   Inflation saw a mixed picture in August, with an increase in US consumer prices for the second month in a row.  Meanwhile in Europe and Japan, consumer and producer prices fell. In China, which is fighting deflationary pressures, consumer prices rose.  “Air cargo demand grew by 1.5% over the previous August. This is the first year-on-year growth in 19 months, so it is certainly welcome news. But it is off a low 2022 base and market signals are mixed. Looking ahead, while many uncertainties remain, we can take some optimism from PMI data moving towards positive territory. This is particularly significant as we head into air cargo’s traditional peak year-end season,” said Willie Walsh, IATA’s Director General.

IATA Announces First Safety Leadership Charter Signatories

The International Air Transport Association - IATA announced the launch of the IATA Safety Leadership Charter at the IATA World Safety and Operations Conference taking place in Hanoi, Vietnam. Safety leaders from more than 20 airlines are the first signatories:

Air Canada	Emirates Airline	Philippine Airlines
Air India	Ethiopian Airlines	Qantas Group
Air Serbia	EVA Airways	Qatar Airways
ANA	Garuda Indonesia Airlines	TAROM
British Airways	Hainan Airlines	United Airlines
Carpatair	Japan Airlines	Vietnam Airlines
Cathay Pacific	Pegasus Airlines	Xiamen Airlines
Delta Air Lines

The Safety Leadership Charter is aimed at strengthening organizational safety culture through a commitment to eight key safety leadership guiding principles. It was developed in consultation with IATA members and the wider aviation community to support industry executives in evolving a positive safety culture within their organizations.

“Leadership matters. It’s the strongest factor affecting safety behaviour. By signing up to the IATA Safety Leadership Charter, these industry leaders are visibly demonstrating their commitment to the criticality of safety culture within their own airlines and the need to continuously build on the work that has gone before,” said Willie Walsh, IATA’s Director General.

Safety Leadership Guiding Principles include:

• Leading the obligation to safety through both words and actions.
• Fostering safety awareness among employees, the leadership team, and the board.
• Creating an atmosphere of trust, where all employees feel responsible for safety and are encouraged and expected to report safety-related information.
• Guiding the integration of safety into business strategies, processes, and performance measures and creating the internal capacity to manage and achieve organizational safety goals.
• Regularly assessing and improving organizational Safety Culture.

“Commercial aviation has benefited from over 100 years of safety advances that inspires us to raise the bar even higher. The commitment and drive by aviation leaders for continuous improvement on safety is a longstanding pillar of commercial aviation that has made flying the safest form of long-distance travel. Signing this charter honours the achievements that should give everyone the highest confidence when flying and sets a powerful and timely reminder that we can never be complacent on safety,” said Nick Careen, IATA’s Senior VP of Operations, Safety and Security.

World Safety and Operations Conference Underway in Vietnam

The International Air Transport Association announced that the inaugural World Safety and Operations Conference (WSOC) has begun in Hanoi, Vietnam under the theme “Leadership in Action: Driving Safer and More Efficient Operations.” Vietnam Airlines is the host carrier for the WSOC, which is the industry’s premiere gathering to examine all aspects of safety, including flight operations, cabin operations, and emergency response. It is the first time that IATA has held a safety conference in Vietnam.

Opening speeches are being delivered by:

• Tran Luu Quang, Deputy Prime Minister, Socialist Republic of Vietnam
• Nguyen Van Thang, Vietnam Ministry of Transport, and
• Dang Ngoc Hoa, Chairman of Vietnam Airlines.

“Safety is aviation’s highest priority, and this is reflected in the high levels of government participation and the fact that over 550 safety professionals from approximately 100 airlines, aviation regulators, aircraft manufacturers, and other safety stakeholders are in attendance. With its location in the heart of Asia and strong economic growth, Vietnam provides an ideal venue for the WSOC. We’re excited to have Vietnam Airlines, which has a growing route network connecting the region and the globe, as our host airline,” said Willie Walsh, IATA’s Director General.

Air Cargo demand strengthens despite challenges in July

The International Air Transport Association (IATA) released data for July 2023 global air cargo markets, showing a continuing trend of recovering growth rates since February. July air cargo demand was tracking just 0.8% below the previous year’s levels. Although demand is now basically flat compared to 2022, this is an improvement on recent months’ performance that is particularly significant given declines in global trade volumes and rising concerns over China’s economy. Global demand, measured in cargo tonne-kilometers (CTKs*), tracked at 0.8% below July 2022 levels (-0.4% for international operations). This was a significant improvement over the previous month’s performance (-3.4%). Capacity, measured in available cargo tonne-kilometers (ACTKs), was up 11.2% compared to July 2022 (8% for international operations). The strong uptick in ACTKs reflects the growth in belly capacity (29.3% year-on-year) due to the summer season. Several factors in the operating environment should be noted: In July, both the manufacturing output Purchasing Managers Index or PMI (49.0) and new export orders PMI (46.4) were below the critical threshold represented by the 50 mark, indicating a decline in global manufacturing production and exports. Global cross-border trade contracted for the third month in a row in June, decreasing 2.5% year-over-year, reflecting the cooling demand environment and challenging macroeconomic conditions. The difference between the annual growth rates of air cargo and the global goods trade narrowed to -0.8 percentage points in June. While air cargo growth is still lagging world trade, the gap is the narrowest since January 2022. In July, the global supplier delivery time PMI was 51.9, signaling fewer supply chain delays. All major economies, except China, had PMIs above 50. The U.S., Europe, and Japan recorded PMIs of 54.2, 57.7, and 50.4, respectively. Inflation saw a mixed picture in July, with the increase in US consumer prices picking up pace for the first time in 13 months. Meanwhile, in China, both consumer and producer prices fell, pointing to a possible deflationary economy.

IATA warns Netherlands government not to cut flights at Amsterdam Schiphol Airport

The International Air Transport Association (IATA) along with the European Business Aviation Association (EBAA), and European Regions Airline Association (ERA) warned that the proposed cuts to flight numbers at Schiphol airport must not proceed under the leadership of a caretaker government. This matter remains before the courts and the proposed process is strongly opposed by the airline industry; therefore, in no way can this be considered “uncontroversial.” In a few months’ time, this government will not be accountable for the severe consequences that may follow from the Schiphol decision, particularly with respect to relations with the Netherlands’ trading partners, and lost jobs and prosperity at home. 

Such a consequential and controversial move requires proper democratic scrutiny and political accountability. The government’s desire for a forced cut to Schiphol’s annual flight numbers to 460,000 under an ‘Experimental Regulation’ was initially blocked by the Dutch court, which found it to be contrary to Dutch obligations under EU law and bilateral air services agreements connected with the Balanced Approach to noise. 

The Balanced Approach is a longstanding internationally agreed process to manage noise at airport communities that carries the weight of law in national jurisdictions, including in the EU and many of its trading partners. A core tenet of the Balanced Approach is that operational restrictions and flight cuts are the last resort, to be considered only when a number of other steps have been taken to achieve noise mitigation targets. The Balanced Approach is used specifically to ensure local community needs are respected, the wider benefits of air connectivity to the nation are protected, and the actions are respected internationally. 

Northern Summer Travel Season off to a Strong Start

The International Air Transport Association (IATA) announced that the post-COVID recovery momentum continued in June for passenger markets. Total traffic in June 2023 (measured in revenue passenger kilometers or RPKs) rose 31.0% compared to June 2022. Globally, traffic is now at 94.2% of pre-COVID levels. For the first half of 2023, total traffic was up 47.2% compared to the year-ago period. Domestic traffic for June rose 27.2% compared to the same month a year ago and was 5.1% above the June 2019 results. Domestic demand was up 33.3% in the 2023 first half compared to a year ago. International traffic climbed 33.7% versus June 2022 with all markets showing robust growth. International RPKs reached 88.2% of June 2019 levels. First half 2023 international traffic was up 58.6% over the first half of 2022. “The northern summer travel season got off to a strong start in June with double-digit demand growth and average load factors topping 84%. Planes are full which is good news for airlines, local economies, and travel and tourism dependent jobs. All benefit from the industry’s ongoing recovery,” said Willie Walsh, IATA’s Director General.

June 2023 (% year-on-year) World share1 RPK ASK PLF (%-pt)2 PLF (level)3 Total Market  100.0% 31.0% 28.8% 1.4% 84.2% Africa 2.1% 31.8% 40.5% -4.6% 68.9% Asia Pacific 22.1% 90.1% 73.3% 7.1% 80.4% Europe 30.8% 13.0% 11.5% 1.2% 87.7% Latin America 6.4% 18.7% 17.1% 1.1% 82.5% Middle East 9.8% 28.3% 24.5% 2.4% 79.4% North America 28.8% 12.9% 13.8% -0.7% 88.7% 1% of industry RPKs in 2022   2year-on-year change in load factor   3Load Factor Level