Iata has released May’s traffic data showing continued strong growth in air travel demand, with global traffic (measured in revenue passenger kilometres or RPKs) now at 96.1% of May 2019 (pre-pandemic) levels.
Global total traffic in May rose 39.1% compared with May 2022.
Domestic traffic for May rose 36.4% compared with the same period a year ago. Total May domestic traffic was 5.3% above the May 2019 level. This is the second month in a row that domestic traffic has exceeded pre-pandemic levels.
International traffic climbed 40.9% versus May 2022 with all markets recording strong growth, led again by Asia-Pacific carriers. International RPKs reached 90.8% of May 2019 levels, with Middle East and North American airlines exceeding pre-pandemic levels.
The total industry load factor rose to 81.8%, led by North American carriers at 86.3%.
African airlines’ traffic rose 45.2% in May versus a year ago. May capacity was up 44.2%, and the load factor increased 0.5 percentage points to 68.8%, the lowest among the regions.
“We saw more good news in May. Planes were full, with the average load factors reaching 81.8%. Domestic markets reported growth on pre-pandemic levels. And, heading into the busy Northern summer travel season, international demand reached 90.8% of pre-pandemic levels,” said Willie Walsh, Iata Director General.
Walsh added that, in 2023, Iata expected airlines globally to post a US$9.8 billion nett profit. “It’s an impressive number, particularly after huge pandemic losses. But a 1.2% average nett profit margin is just US$2.25 per departing passenger. As a return, that is not sustainable in the long-term.”
Walsh added that, while the pandemic had changed many things in aviation, “it has not righted aviation’s famously unbalanced value chain”.
“The latest indication came last week as European airports announced a €6.4 billion (US$7 billion) collective profit in 2022. In comparison, Iata estimates that European airlines made a US$4.1 billion profit for the same year. We don’t begrudge any business hard-earned profits. But this does raise an interesting question. Is airport economic regulation effectively defending the public interest when a monopoly supplier (airports) can generate seemingly much healthier returns than the competitive businesses (airlines) they supply? Governments should at least take a look,” concluded Walsh.
