The International Air Transport Association (IATA) has shared a soaring recovery trajectory for passenger aviation in both international and domestic markets post the pandemic.
The recently released analysis by IATA highlighted India’s aviation rebound, with domestic demand surging by 14.8 per cent in June. Notably, this surge pushed the demand levels 1.3 per cent above those of June 2019, showcasing a swift resurgence for the Indian aviation sector.
In a detailed breakdown of the numbers globally, the report stated that the domestic traffic in June marked a 27.2 per cent increase when compared to the corresponding month in the previous year. Impressively, these figures also demonstrated a 5.1 per cent elevation over the results of June 2019. The cumulative domestic demand for the first half of 2023 surged by an impressive 33.3 per cent compared to the previous year, accentuating the sustained momentum in India’s aviation landscape.
Notably, June 2023 witnessed a remarkable 31 per cent escalation in total traffic, measured in revenue passenger kilometers (RPKs), in comparison to June 2022. This global resurgence in traffic has brought the aviation industry’s overall traffic levels to an impressive 94.2 per cent of the pre-Covid levels. The first half of 2023 demonstrated a 47.2 per cent increase in total traffic, marking a substantial leap compared to the same period in the preceding year, said IATA.
The Asia-Pacific region emerged as a standout performer, with a 128.1 per cent surge in total traffic in June 2023, marking the largest percentage gain across all regions. This growth was accompanied by a capacity escalation of 115.6 per cent, further contributing to a significant 4.6 percentage point increase in the load factor, which soared to an impressive 82.9 per cent.
According to Willie Walsh, IATA’s Director General, the northern summer travel season got off to a strong start in June with double-digit demand growth and average load factors topping 84 per cent. “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,” he said.
Akasa Air currently holds a market share of 4.9 per cent in the domestic aviation industry with passenger load factor of over 84 per cent since the beginning of its operations. With over 3,000 employees, the airline plans to increase its employee strength to over 3,500 by March 2024 to support its expansion plans.
On the international front, the upward trajectory continued with 33.7 per cent growth in international traffic compared to June 2022. All global markets demonstrated robust growth, stated IATA, adding that it propelled international revenue passenger kilometers (RPKs) to 88.2 per cent of the levels witnessed in June 2019. The momentum carried through the first half of 2023, exhibiting an outstanding 58.6 per cent growth in international traffic compared to the same period in 2022.
“As strong as travel demand has been, arguably it could be even stronger. Demand is outrunning capacity growth. Well documented problems in the aviation supply chain mean that many airlines have not taken delivery of all the new, more environmentally friendly aircraft they had expected, while numerous aircraft are parked awaiting critical spare parts. And, for the fleet that is in service, some air navigation service providers (ANSPs) are failing to deliver the requisite capacity and resilience to meet travel demand,” said Walsh.
The delays and trimmed schedules, he said, are frustrating for both passengers and their airlines. The governments cannot continue to ignore the accountability of ANSPs in places where passenger rights regimes place the brunt of accountability on airlines, he pointed.
