World air transport: passenger demand falls 79.8%

The demand for passengers in global air transport (measured in revenue passenger-kilometers or RPK) registered a fall of 79.8% year-on-year in July, reported the International Air Transport Association (IATA).

This was somewhat better than the 86.6% year-on-year drop recorded in June, driven mainly by domestic markets, especially Russia and China.

The reopening of the market in the Schengen area helped boost international demand in Europe, but other international markets showed little change since June.

Capacity was 70.1% below 2019 levels and load factor plunged to a record low in July of 57.9 percent.

“The demand crisis continued with little respite in July. With essentially four out of five air travelers staying at home, the industry remains largely paralyzed. Governments that reopen and then close borders or eliminate and then re-impose quarantines do not give many consumers the confidence to make travel plans, or airlines to rebuild schedules, «said Alexandre de Juniac, CEO of the IATA.

Air Transport

Passenger demand in air travel continues to gradually recover from the lowest point in April.

In seasonally adjusted terms, RPKs increased 14% month-on-month, a rate of improvement very similar to that of June.

According to the air transport result, all regions recorded slower annual declines.

International RPK growth, yearly (airline region of registration basis)

Asia Pacific, North America and Europe were the strongest, benefiting from relatively fast recoveries in some of their domestic markets.

That said, air travel passenger volumes in these markets were still 70-80% lower compared to a year ago.