…IATA expects airlines’ revenues to surpass the evocative USD 1 trillion mark to surpass the evocative USD 1 trillion mark in 2025
FRI JAN 10 2025-theGBJournal| African carriers achieved outstanding results, with 12.4% YoY growth in international revenue passenger kilometers (RPK) and an increase of 4.1 percentage points in load factor, the highest increase among the regions, according to latest data from the International Air Transport Association (IATA) released data for November 2024.
IATA, which expects airlines’ revenues to surpass the evocative USD 1 trillion mark in 2025, said total demand, measured in RPK, was up 8.1% compared to November 2023.
Total capacity, measured in available seat kilometers (ASK), was up 5.7% year-on-year while the November load factor was 83.4% (+1.9 ppt compared to November 2023), an all-time high for November.
International demand also rose 11.6% compared to November 2023. Capacity was up 8.6% year-on-year, and the load factor was 83.4% (+2.3 ppt compared to November 2023).
”Strong performance by carriers in Europe and Asia-Pacific drove this double-digit expansion in demand,” IATA noted.
Domestic demand rose 3.1% compared to November 2023. Capacity was up 1.5% year-on-year and the load factor was 83.5% (+1.2 ppt compared to November 2023).
“November was another month of strong growth in the demand for air travel with an overall expansion of 8.1%. The month was also another reminder of the supply chain issues that are preventing airlines from getting the aircraft they need to meet growing demand, said Willie Walsh, IATA’s Director General.
Walsh noted that capacity growth is lagging demand by 2.4 ppts and load factors are at record levels.
”Airlines are missing out on opportunities to better serve customers, modernize their products and improve their environmental performance because aircraft are not being delivered on time.
The 2025 New Year’s resolution for the aerospace manufacturing sector must be finding a fast and durable solution for their supply chain issues,” said Willie Walsh.
In its global outlook, IATA expects the air transport industry to report a relatively strong profit in 2024 despite rising costs and limits on capacity building.
Airlines have faced wage increases and higher operating costs, some because of the longer routes imposed by airspace restrictions.
But for 2025, IATA expects that top-line growth and lower fuel prices should translate into higher profitability.
”We forecast a net profit of USD 36.6 billion—a record high for the industry—at a still meager 3.6% net profit margin. Load factors are likely to remain high as supply chain issues will continue to impact 2025 and beyond,” IATA said.
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