2024: A Record-Breaking Year for Global Air Travel

My post content

IATA's "Air Passenger Market Analysis" for December 2024 details a record-breaking year for global air travel.

Key points are as follows:

Overall Growth: Industry-wide Revenue Passenger-Kilometers (RPK) rose 8.6% year-on-year (YoY) in December, with a full-year increase of 10.4% YoY, surpassing 2019 levels by 3.8%. Available Seat-Kilometers (ASK) grew 5.6% YoY in December, and the Passenger Load Factor (PLF) hit a new annual record of 83.5%, peaking at 84.0% in December.

Domestic Traffic: Grew 5.5% YoY in December and 5.7% for the year, with PR China (20.2% above 2019) and India leading growth. The U.S., the largest domestic market, saw a 6.4% YoY rise in December after earlier contractions.

International Traffic: Increased 10.6% YoY in December and 13.6% for 2024, exceeding 2019 by 0.5%. Asia Pacific (17.1% YoY) and European carriers drove growth, though some routes lag pre-pandemic levels due to airspace restrictions and geopolitical factors.

Regional Performance: Asia Pacific led annual RPK growth at 16.9% YoY, followed by Africa (13.2%). North America grew 4.6% from a high base, with a late surge in December (5.1% YoY).

Trends: Strong demand outpaced capacity growth, boosting PLF across regions. Middle Eastern hubs saw increased traffic due to global network shifts, while Chinese and Indian domestic markets expanded rapidly.

The year marked a widespread recovery, with all regions surpassing pre-pandemic levels, driven by robust demand and regional dynamics despite ongoing airspace challenges.

In summary, 2025 is poised for strong growth in passenger numbers and profitability, though tempered by supply and cost challenges. Beyond 2025, the industry faces a trajectory of steady expansion, heavily influenced by Asia-Pacific’s rise, sustainability efforts, and geopolitical stability, with global traffic potentially doubling or more by mid-century. Projections vary slightly across sources due to differing assumptions, but the consensus points to a resilient, evolving aviation sector.

But How Latin America is positioned?

Latin America’s air passenger market is set for steady growth in 2025, with passenger numbers approaching 776 million and robust RPK increases, supported by high load factors and financial recovery. Long-term, the region could see traffic double by 2050, driven by economic growth and fleet modernization, though tempered by supply and cost pressures. This positions Latin America as a resilient, high-potential aviation market with significant upside through mid-century.

What are the challenges?

Currency depreciation, supply chain issues and geopolitical tensions could raise costs. IATA notes thin margins ($7/passenger profit) and infrastructure inefficiencies as risks.