IATA expects 10.4% growth in air passenger numbers

KATHMANDU: The aviation industry is expecting a 10.4% growth in the number of global passengers this year.

The International Air Travel Association (IATA) said in its latest publication, Global Outlook for Air Travel, that the global aviation industry matched the revenue passenger kilometers (RPKs) of the 2019 levels in February 2024 and expects an 11.6% growth in total RPKs this year.

According to the report, the Asia Pacific region is leading the way and the region is projected to contribute more than half of the global net gain in passenger numbers by 2043.

Despite challenges like trade restrictions and tariff hikes, the air cargo sector is also experiencing growth. Global air cargo traffic is expected to grow by 5% in 2024, aided by booming e-commerce and disruptions in maritime shipping, IATA stated in the outlook. “Thanks to the anticipated growth in passenger and cargo traffic, the industry’s revenue should increase by 10% and nearly reach the $1 trillion mark. While passenger yields are expected to rise, cargo yields may decline, impacting overall cargo revenue,” it added.

IATA estimates the global aviation industry to generate a net profit of $30.5 billion in 2024, with a 3.1% net profit margin and a 6.0% operating margin. “With such slim margins, the industry’s profitability is still fragile, leaving meager buffers with which to absorb the rising costs of climate change and decarbonization, and the many other potential sources of additional costs or threats to activity,” IATA said. “Moreover, compressed margins in a context of generalized cost increases will impede the strengthening of balance sheets that still carry excess debt since the Covid pandemic.”

According to the outlook, airlines remain committed to delivering net-zero CO2 emissions in air transportation by 2050.