Author: Admin

Hanoi, Vietnam – The International Air Transport Association (IATA) marked the first 20 years of the IATA Operational Safety Audit (IOSA) at the IATA World Safety and Operations Conference taking place in Hanoi, Vietnam.

“Over the past two decades, IOSA has made a major contribution to improving safety, while reducing the number of redundant audits. While it is a condition of membership in IATA, more than 100 non-IATA member airlines also see the value of participating and we welcome others. Likewise, while more than 40 governments use or are intending to use IOSA in their safety oversight programs, many more do not,” said Nick Careen, IATA’s Senior Vice President Operations, Safety and Security.

The safety data confirm that in aggregate, airlines on the IOSA registry have a lower accident rate than airlines that are not on the IOSA registry. Since 2005, the all-accident rate for airlines on the IOSA registry is 1.40 per million sectors, compared with 3.49 per million sectors for non-IOSA airlines. In 2022, IOSA registered carriers outperformed those not on the registry by a factor of four (0.70 accidents per million sectors vs. 2.82 accidents per million sectors).

Reflecting the strong safety performance of airlines on the IOSA registry, IATA entered into IOSA’s third decade with a call for:

•             Regulators to recognize the significant contribution to safety that IOSA makes as the global standard for airline operational safety and to incorporate IOSA into their own safety regulatory oversight programs.

•             Airlines not yet on the IOSA registry to join. Currently, some 417 operators are on the IOSA registry, of which 107 are non-IATA members.

A History of Continuous Improvement

IOSA was launched in September 2003 with Qatar Airways as the first airline to be audited and join the IOSA Registry. IOSA has been a requirement for IATA membership since 2006. It is also a condition of membership in the three global airline alliances, as well as a number of regional airline associations. It is used by regulators in numerous countries to complement their safety regulatory oversight programs, and as the primary means to verify operational safety for many airline codeshare arrangements.

The audit assesses an airline’s conformity with the IOSA standards and recommended practices (ISARPs). These are based on the internationally agreed standards and recommended practices set down and maintained through the International Civil Aviation Organization (ICAO).

IOSA was developed in cooperation with aviation regulatory bodies, including Australia’s Civil Aviation Safety Authority (CASA), the European Union Aviation Safety Agency (EASA), US Federal Aviation Administration (FAA) and Transport Canada.

Last year, IATA began evolving IOSA to a risk-based model under which audits are tailored to the operator’s profile and focusing on high-risk areas. The new approach also introduces a maturity assessment of the airline’s safety-critical systems and programs.

“IOSA is the globally recognized standard for airline operational safety auditing. Now we are taking it to the next level by tailoring the audit activity to the operator’s profile and focusing on high-risk areas. As IOSA evolves to deliver greater value for the operator and the industry, we hope additional airlines will see the value of this important safety program and strongly urge more governments to make it a formal part of their safety oversight,” said Careen.

IOSA by the Numbers

•             417 operators on the IOSA registry

•             Over 4,000 IOSA audits conducted

•             922 standards in the IOSA Standards Manual (ISM)

•             The ISM is in its 16th Edition

•             14 countries include IOSA in their regulations.

•             Approximately 27 regulators have signed MoUs with IATA to use IOSA

•             Approximately 15,000 redundant audits have been avoided through audit reports/questionnaire sharing

18 September 2023

Geneva – The International Air Transport Association (IATA) reemphasized that every drop of fuel avoided counts in the aviation industry’s quest to achieve net zero carbon emissions by 2050 with the latest result from the IATA Fuel Efficiency Gap Analysis (FEGA).

LOT Polish Airlines (LOT) is one of the airlines to undertake the FEGA, which identified the potential to shave its annual fuel consumption by several percent. That equates to an annual reduction by tens of thousands of tonnes of carbon from LOT’s operations.

“Every drop counts. Since its inception in 2005, FEGA has helped airlines identify cumulative savings of 15.2 million tonnes of carbon by cutting fuel consumption by 4.76 million tonnes. LOT is the latest example of an airline exploring all opportunities to achieve every incremental efficiency possible in fuel consumption. That’s good for the environment and for the bottom line,” said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist.

On average, FEGA has identified fuel savings of 4.4% per airline audited. If fully realized across all audited airlines, these savings, which stem primarily from flight operations and dispatch, equate to removing 3.4 million fuel-powered cars from the road.

The FEGA team analyzed LOT’s operations against industry benchmarks in flight dispatch, ground operations, and flight operations to identify fuel savings potential. The most significant ones were identified in flight planning, emission reduction through implementation of aviation procedures and refueling operations.

“FEGA revealed specific areas where fuel efficiency improvements can be made. The next step is implementation to actually achieve the benefits of improved environmental performance and lower operating costs”, said Dorota Dmuchowska, Chief Operating Officer at LOT Polish Airlines.

“FEGA is a key IATA offering. The audit not only benefits the airline undergoing the process thanks to a reduced fuel use, it also helps the whole industry improve its environmental performance. Those benefits will grow as FEGA continuously becomes more effective with accumulated experience and growing capabilities using anonymized and aggregated airline data. Most importantly, realizing the FEGA identified savings will be an important support as airlines transition to SAF in pursuit of net zero emissions by 2050,” said Frederic Leger, IATA’s Senior Vice President for Commercial Products and Services.

Geneva – The International Air Transport Association (IATA) Labelmaster, and Hazardous Cargo Bulletin today announced the results of their eighth annual 2023 Global Dangerous Goods Confidence Outlook. The survey results highlighted the need to reduce process complexity, establish effective staff recruitment and retention programs, and enhance digitalization to facilitate the safe and compliant transport of dangerous goods (DG) / hazardous materials (hazmat).

“Ongoing supply chain disruptions along with the continued growth of e-commerce and markets that rely on DG – from consumer products to electric vehicles – has made shipping goods safely and compliantly increasingly difficult. While organizations showed improvement in their DG operations over the last year, the survey underscored the need to reduce process complexity and enhance digitalization to address future supply chain and regulatory challenges,” said Robert Finn, vice president, Labelmaster.

“Confidence among DG professionals is high, yet challenges remain. These include process complexity, the mis-declaration of DG and the recruitment of skilled personnel. To meet the future growth in DG shipments, we need well-trained professionals following globally agreed standards and supported by the right technology and infrastructure,” said Nick Careen, IATA’s senior vice president of operations, safety, and security.

Key Findings and Recommendations

DG professionals are confident about the industry’s level of infrastructure and investment.

•    85% believe that their infrastructure is on par or ahead of the industry.

•    92% increased or kept their DG investment the same year-over-year.

•    While 56% believe their current infrastructure meets existing needs, only 28% responded that it meets both current and future needs.  

Process complexity, mis-declared DGs and attracting qualified staff remain challenging.

•    72% need more support to address future DG compliance. 

•    Views of the labor market are mixed, with 40% indicating that current challenges will persist, 32% expecting the labor market to improve and 28% believing that it will become more difficult to find qualified staff.

•    56% said they expect the mis-declaration of DGs to stay the same or worsen.

Sustainability remains a focus across the industry.

•    73% of DG professionals report that their organizations have sustainability initiatives in place or planned.

•    However, 27% do not have any sustainability initiatives planned, showing room for improvement.

Creating a Better DG Supply Chain

The survey results point to the challenges that the air cargo value chain continues to face in process simplification, digitalization, and training. Some key compliance tools from IATA and Labelmaster are helping to address these needs:

•    Reduce Complexity: Establish repeatable processes with DG software such as Labelmaster’s DGIS.

•    Digitalization: Integrate DG software into enterprise resource planning (ERP) and warehouse management system (WMS) to ensure complete, accurate data, for example, connecting DG AutoCheck via API Connect.

•    Training: Strengthen employees’ understanding of DG regulations with Labelmaster’s immersive 3D experiences.

Finn added, “While DG professionals are generally optimistic about the future, the survey shows improvements to processes are needed to adapt to supply chain and regulatory changes. The good news is there are plenty of tools available that will help organizations address current and future needs and keep regulated goods moving safely, compliantly, and efficiently.”

To learn more about the state of the global DG supply chain, download https://go.updates.iata.org/e/123902/onfidence-outlook-2023-results/j2961f/1589836827?h=RP41Mb4OSCXfTG29ol3lE4L3pVv0f7yyZu5OsXOYMls.

About the Survey

Sponsored by Labelmaster, the International Air Transport Association (IATA) and Hazardous Cargo Bulletin, over 1,000 DG professionals from around the world were surveyed about their organizations’ operations and their expectations for the industry. The survey was conducted between April 18 and June 1, 2023.

About Labelmaster

For more than five decades, Labelmaster has been the go-to source for companies – big and small – to navigate and comply with the complex, ever-changing regulations that govern the transport of dangerous goods and hazardous materials. From hazmat labels and UN-certified packaging, hazmat placards and regulatory publications, to advanced technology and regulatory training, Labelmaster’s comprehensive offering of industry-leading software, products, and services helps customers remain compliant with all dangerous goods regulations, mitigate risk and maintain smooth, safe operations. Labelmaster’s dedication to supporting its customers’ operational and compliance needs is enhanced through its unmatched industry expertise and consulting services, which serve as a valuable resource for customers to answer difficult and commonplace regulatory questions. Whether you’re shipping hazardous materials by land, air, or sea, Labelmaster is your partner in keeping your business ahead of regulations and compliant every step of the way. To learn more, visit www.labelmaster.com.

 Geneva – The International Air Transport Association (IATA) released data for July 2023 global air cargo markets, showing a continuing trend of recovering growth rates since February. July air cargo demand was tracking just 0.8% below the previous year’s levels. Although demand is now basically flat compared to 2022, this is an improvement on recent months’ performance that is particularly significant given declines in global trade volumes and rising concerns over China’s economy.

•             Global demand, measured in cargo tonne-kilometers (CTKs*), tracked at 0.8% below July 2022 levels (-0.4% for international operations). This was a significant improvement over the previous month’s performance (-3.4%).

•             Capacity, measured in available cargo tonne-kilometers (ACTKs), was up 11.2% compared to July 2022 (8% for international operations). The strong uptick in ACTKs reflects the growth in belly capacity (29.3% year-on-year) due to the summer season.

•             Several factors in the operating environment should be noted:

o             In July, both the manufacturing output Purchasing Managers Index or PMI (49.0) and new export orders PMI (46.4) were below the critical threshold represented by the 50 mark, indicating a decline in global manufacturing production and exports.

o             Global cross-border trade contracted for the third month in a row in June, decreasing 2.5% year-over-year, reflecting the cooling demand environment and challenging macroeconomic conditions. The difference between the annual growth rates of air cargo and the global goods trade narrowed to -0.8 percentage points in June. While air cargo growth is still lagging world trade, the gap is the narrowest since January 2022.

o             In July, the global supplier delivery time PMI was 51.9, signaling fewer supply chain delays. All major economies, except China, had PMIs above 50. The U.S., Europe, and Japan recorded PMIs of 54.2, 57.7, and 50.4, respectively.

o             Inflation saw a mixed picture in July, with the increase in US consumer prices picking up pace for the first time in 13 months. Meanwhile, in China, both consumer and producer prices fell, pointing to a possible deflationary economy.

“Compared to July 2022, demand for air cargo was basically flat. Considering we were 3.4% below 2022 levels in June, that’s a significant improvement. And it continues a trend of strengthening demand that began in February. How this trend will evolve in the coming months will be something to watch carefully. Many fundamental drivers of air cargo demand, such as trade volumes and export orders, remain weak or are deteriorating. And there are growing concerns over how China’s economy is developing. At the same time, we are seeing shorter delivery times, which is normally a sign of increasing economic activity. Amid these mixed signals, strengthening demand gives us good reason to be cautiously optimistic,” said Willie Walsh, IATA’s Director General.

July 2023 (% year-on-year)          World share1     CTK        ACTK     CLF (%-pt)2         CLF (level)3

Total Market      100.0%  -0.8%     11.2%    -5.1%     42.1%

Africa    2.0%      2.9%      11.0%    -3.3%     41.7%

Asia Pacific          32.4%    2.7%      26.0%    -10.4%  45.7%

Europe 21.8%    -1.5%     5.3%      -3.3%     47.2%

Latin America     2.7%      0.4%      10.0%    -3.1%     32.2%

Middle East        13.0%    1.5%      17.1%    -6.3%     41.1%

North America  28.1%    -5.2%     0.5%      -2.2%     37.0%

1 % of industry CTKs in 2022  2 Change in load factor  3 Load factor level

July Regional Performance

•             Asia-Pacific airlines saw their air cargo volumes increase by 2.7% in July 2023 compared to the same month in 2022. This was a significant improvement in performance compared to June (-3.3%).  Carriers in the region benefited from growth on three major trade lanes: Europe-Asia (3.2% year-on-year growth), Middle East-Asia (up from 1.8% in June to 6.6% in July), and Africa-Asia (returning to double-digit growth of 10.3% year-on-year from -4.8% in June). Additionally, the within-Asia trade lane also performed considerably better in July, with an annual decline of international CTKs at 7.5% compared with the double-digit decreases observed since September 2022. Available capacity in the region increased by 26.0% compared to July 2022 as more belly capacity came online from the passenger side of the business.

•             North American carriers posted the weakest performance of all regions, with a 5.2% decrease in cargo volumes in July 2023 compared to the same month in 2022, marking the fifth consecutive month in which the region had the weakest performance. It was, however, a slight improvement compared to June (-5.9%).  The transatlantic route between North America and Europe saw traffic declining by 4.3% in July, 1.2 percentage points worse than the previous month. Capacity increased 0.5% compared to July 2022.

•             European carriers saw their air cargo volumes decline by 1.5% in July compared to the same month in 2022.  This was, however, an improvement in performance versus June (-3.2%). Volumes were affected due to the aforementioned Europe–North America performance and contractions in the Middle East-Europe (-1.2%) and the within-Europe (-5.1%) markets. Capacity increased 5.3% in July 2023 compared to July 2022.

•             Middle Eastern carriers experienced a 1.5% year-on-year increase in cargo volumes in July 2023. This was also an improvement to the previous month’s performance (0.6%). The demand on Middle East–Asia routes has been trending upward in the past two months. Capacity increased 17.1% compared to July 2022.

•             Latin American carriers posted a 0.4% increase in cargo volumes compared to July 2022. This was a drop in performance compared to the previous month (2.2%). Capacity in July was up 10.0% compared to the same month in 2022.

•             African airlines had the strongest performance in July 2023, with a 2.9% increase in cargo volumes compared to July 2022. Notably, Africa–Asia routes experienced significant cargo demand growth (10.3%). Capacity was 11.0% above July 2022 levels.

 Geneva – The International Air Transport Association (IATA), European Business Aviation Association (EBAA), and European Regions Airline Association (ERA) warned that the proposed cuts to flight numbers at Schiphol airport must not proceed under the leadership of a caretaker government. This matter remains before the courts and the proposed process is strongly opposed by the airline industry; therefore, in no way can this be considered “uncontroversial.” In a few months’ time, this government will not be accountable for the severe consequences that may follow from the Schiphol decision, particularly with respect to relations with the Netherlands’ trading partners, and lost jobs and prosperity at home.

Such a consequential and controversial move requires proper democratic scrutiny and political accountability. The government’s desire for a forced cut to Schiphol’s annual flight numbers to 460,000 under an ‘Experimental Regulation’ was initially blocked by the Dutch court, which found it to be contrary to Dutch obligations under EU law and bilateral air services agreements connected with the Balanced Approach to noise.

The Balanced Approach is a longstanding internationally agreed process to manage noise at airport communities that carries the weight of law in national jurisdictions, including in the EU and many of its trading partners. A core tenet of the Balanced Approach is that operational restrictions and flight cuts are the last resort, to be considered only when a number of other steps have been taken to achieve noise mitigation targets. The Balanced Approach is used specifically to ensure local community needs are respected, the wider benefits of air connectivity to the nation are protected, and the actions are respected internationally.

The government successfully appealed and overturned the initial decision, with the Court of Appeal deciding that the Balanced Approach does not apply to the Experimental Regulation. The international airline community represented by IATA, other airline associations and individual carriers, deeply concerned by the implications of this highly controversial decision. The coalition of airlines and associations has commenced Supreme Court cassation proceedings challenging this. 

Flight cuts of this magnitude at Schiphol will mean reductions in slot holdings that will negatively impact passenger and freight services. No mechanism, domestic or international, exists for agreeing such cuts. Rushing this process through could result in retaliatory international action and further legal challenges, including from governments defending their rights under international agreements and bilateral treaties.

In such circumstances, any attempt by Minister Harbers and a failed government in caretaker mode to rush through the flight cuts at Schiphol would be irresponsible on several levels.

•    It will demonstrate a contempt of the necessary democratic and legal scrutiny required of such a highly irregular and economically damaging proposal.

•    It will place the Netherlands squarely in conflict with its trading partners defending their rights under international agreements and bilateral treaties,

•    It should provoke the EU to defend its own laws which require rigorous application of the Balanced Approach, and

•    It will cause significant harm to the economy and jobs.

“Airlines are fully committed to addressing noise issues at airports under a proper Balanced Approach process. It is essential that any decision be postponed until a fully functioning and accountable government with a fresh mandate is in place. This unprecedented and complex proposal can then be considered carefully, with the legal questions settled and the full facts and implications understood and in the public domain, and with sufficient time for the air transport industry to adapt if necessary, when a final decision is known,” said Willie Walsh, IATA’s Director General.

Geneva – The International Air Transport Association (IATA), European Business Aviation Association (EBAA), and European Regions Airline Association (ERA) warned that the proposed cuts to flight numbers at Schiphol airport must not proceed under the leadership of a caretaker government. This matter remains before the courts and the proposed process is strongly opposed by the airline industry; therefore, in no way can this be considered “uncontroversial.” In a few months’ time, this government will not be accountable for the severe consequences that may follow from the Schiphol decision, particularly with respect to relations with the Netherlands’ trading partners, and lost jobs and prosperity at home.

Such a consequential and controversial move requires proper democratic scrutiny and political accountability. The government’s desire for a forced cut to Schiphol’s annual flight numbers to 460,000 under an ‘Experimental Regulation’ was initially blocked by the Dutch court, which found it to be contrary to Dutch obligations under EU law and bilateral air services agreements connected with the Balanced Approach to noise.

The Balanced Approach is a longstanding internationally agreed process to manage noise at airport communities that carries the weight of law in national jurisdictions, including in the EU and many of its trading partners. A core tenet of the Balanced Approach is that operational restrictions and flight cuts are the last resort, to be considered only when a number of other steps have been taken to achieve noise mitigation targets. The Balanced Approach is used specifically to ensure local community needs are respected, the wider benefits of air connectivity to the nation are protected, and the actions are respected internationally.

The government successfully appealed and overturned the initial decision, with the Court of Appeal deciding that the Balanced Approach does not apply to the Experimental Regulation. The international airline community represented by IATA, other airline associations and individual carriers, deeply concerned by the implications of this highly controversial decision. The coalition of airlines and associations has commenced Supreme Court cassation proceedings challenging this. 

Flight cuts of this magnitude at Schiphol will mean reductions in slot holdings that will negatively impact passenger and freight services. No mechanism, domestic or international, exists for agreeing such cuts. Rushing this process through could result in retaliatory international action and further legal challenges, including from governments defending their rights under international agreements and bilateral treaties.

In such circumstances, any attempt by Minister Harbers and a failed government in caretaker mode to rush through the flight cuts at Schiphol would be irresponsible on several levels.

•    It will demonstrate a contempt of the necessary democratic and legal scrutiny required of such a highly irregular and economically damaging proposal.

•    It will place the Netherlands squarely in conflict with its trading partners defending their rights under international agreements and bilateral treaties,

•    It should provoke the EU to defend its own laws which require rigorous application of the Balanced Approach, and

•    It will cause significant harm to the economy and jobs.

“Airlines are fully committed to addressing noise issues at airports under a proper Balanced Approach process. It is essential that any decision be postponed until a fully functioning and accountable government with a fresh mandate is in place. This unprecedented and complex proposal can then be considered carefully, with the legal questions settled and the full facts and implications understood and in the public domain, and with sufficient time for the air transport industry to adapt if necessary, when a final decision is known,” said Willie Walsh, IATA’s Director General.

The Chinese airline has been serving the Beijing-Berlin route since SEP2008, with a short interruption caused by the Corona pandemic. Now it has increased the frequency from 3/7 to 4/7. On the route, the carrier operates an A330-200, which can carry 20+ tons per flight, depending on passenger luggage.

Welcomed the new flight (l > r): Johannes Mohrmann, BER  /  Shupeng Hu, Hainan Airlines  /  Thomas Kohr, BER  /  Min Zhang, Hainan Airlines – courtesy: BER

Welcomed the new flight (l > r): Johannes Mohrmann, BER / Shupeng Hu, Hainan Airlines / Thomas Kohr, BER / Min Zhang, Hainan Airlines – courtesy: BER

Aletta von Massenbach, CEO of airport operator, Flughafen Berlin Brandenburg GmbH (BER), congratulated customer, Hainan Airlines (IATA: HU), after the new flight had just landed at BER Airport, marking the 15th anniversary of the air services linking both capital cities. Literally, the executive said, “The long-term success shows, the demand for tourism and business travel on long-haul routes between the two cities is very stable. Hainan Airlines’ decision to upscale the flights allows the city partnership of Berlin and Beijing to be filled even better with life through personal encounters.”

Appreciated news

The airline’s frequency increase between the two national capitals is welcome news not only for travelers, but also for the air cargo industry. This is confirmed by Nouri Neller, MD Germany of general sales agent, Kales, which markets the aircraft’s cargo compartments. “The Berlin-Beijing sector is highly attractive for the industry, especially since Hainan offers numerous feeder flights ex Beijing to domestic Chinese destinations,” says the manager. These include, for instance, scheduled air traffic to Harbin (HRB) in the northeast of China, Shenzhen (SZX) and Guangzhou (CAN) at the Pacific rim, or Kunming Changshui (KMG) in the southwest of the country. “This means we can offer local exporters air transportation to virtually every major destination in China,” enthuses Mr. Neller.

Close to 2019 levels

This network aspect is also emphasized by Min Zhang, General Manager of Hainan Airlines’ Berlin office. “Hainan Airlines is the bridge between the two capitals and also conveniently connects Berlin via Beijing with many destinations in China and in Asia, such as Tokyo or Bangkok. We are pleased to once again offer the market a range of flights between our countries that is close to the level of the pre-Corona year 2019.”

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08 August 2023  No: 50

Geneva – The International Air Transport Association (IATA) announced that the post-COVID recovery momentum continued in June for passenger markets.

•             Total traffic in June 2023 (measured in revenue passenger kilometers or RPKs) rose 31.0% compared to June 2022. Globally, traffic is now at 94.2% of pre-COVID levels. For the first half of 2023, total traffic was up 47.2% compared to the year-ago period.

•             Domestic traffic for June rose 27.2% compared to the same month a year ago and was 5.1% above the June 2019 results. Domestic demand was up 33.3% in the 2023 first half compared to a year ago.

•             International traffic climbed 33.7% versus June 2022 with all markets showing robust growth. International RPKs reached 88.2% of June 2019 levels. First half 2023 international traffic was up 58.6% over the first half of 2022.

“The northern summer travel season got off to a strong start in June with double-digit demand growth and average load factors topping 84%. 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,” said Willie Walsh, IATA’s Director General.

June 2023 (% year-on-year)        World share1     RPK        ASK        PLF (%-pt)2         PLF (level)3

Total Market      100.0%  31.0%    28.8%    1.4%      84.2%

Africa    2.1%      31.8%    40.5%    -4.6%     68.9%

Asia Pacific          22.1%    90.1%    73.3%    7.1%      80.4%

Europe 30.8%    13.0%    11.5%    1.2%      87.7%

Latin America     6.4%      18.7%    17.1%    1.1%      82.5%

Middle East        9.8%      28.3%    24.5%    2.4%      79.4%

North America  28.8%    12.9%    13.8%    -0.7%     88.7%

1% of industry RPKs in 2022   2year-on-year change in load factor   3Load Factor Level

 International Passenger Markets

•             Asia-Pacific airlines had a 128.1% increase in June 2023 traffic compared to June 2022, easily the largest percentage gain among the regions. Capacity climbed 115.6% and the load factor increased by 4.6 percentage points to 82.9%.

•             European carriers posted a 14.0% traffic rise versus June 2022. Capacity rose 12.6%, and load factor climbed 1.1 percentage points to 87.8%, which was the second highest among the regions.

•             Middle Eastern airlines’ June traffic climbed 29.2% compared to June last year. Capacity rose 25.9% and load factor improved 2.0 percentage points to 79.8%.

•             North American carriers saw traffic climb 23.3% in June 2023 versus the 2022 period. Capacity increased 19.5%, and load factor rose 2.7 percentage points to 90.2%, which was the highest among the regions.

•             Latin American airlines had a 25.8% traffic increase compared to the same month in 2022. June capacity climbed 25.0% and load factor rose 0.6 percentage points to 84.8%.

•             African airlines’ traffic rose 34.7% in June 2023 versus a year ago, the second highest percentage gain among the regions. June capacity was up 44.8% and load factor fell 5.1 percentage points to 68.1%, lowest among the regions. Africa was the only region to see a decline in the monthly international load factor compared to the year ago period.

Domestic Passenger Markets

June 2023 (% year-on-year)        World share1  

RPK        ASK        PLF (%-pt)2         PLF (Level)3

Domestic             42.0%    27.2%    24.7%    1.6%      82.9%

Australia              1.0%      -1.7%     1.7%      -2.8%     79.4%

Brazil     1.5%      13.3%    8.2%      3.5%      78.9%

China P.R.            6.4%      129.6%  95.7%    11.4%    77.2%

India      2.0%      14.8%    0.8%      10.9%    89.9%

Japan    1.2%      33.8%    6.3%      15.1%    73.4%

US          19.2%    8.0%      11.2%    -2.6%     87.8%

1% of industry RPKs in 2022   2year-on-year change in load factor 3Load Factor Level

•             Australia’s domestic traffic slipped 1.7% in June compared to a year ago. It was the only domestic market to see a year-over-year traffic decline in June, although traffic remained 3.9% above pre-pandemic levels.                                                                                                                                                                                 

•             Indian airlines’ domestic demand climbed 14.8% in June and was 1.3% above the June 2019 level.                                                         

June 2023 (% ch vs the same month in 2019)       World share1     RPK        ASK        PLF (%-pt)2         PLF (level)3

Total Market      100.0%  -5.8%     -5.5%     -0.2%     84.2%

International      58.0%    -11.8%  -13.2%  1.4%      85.0%

Domestic             42.0%    5.1%      8.7%      -2.8%     82.9%

The Bottom Line

“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. Delays and trimmed schedules are frustrating for both passengers and their airlines. Governments cannot continue to ignore the accountability of ANSPs in places where passenger rights regimes place the brunt of accountability on airlines,” said Walsh.

7 August 2023    No: 49

 (Geneva) – The International Air Transport Association (IATA) released data for June 2023 global air cargo markets showing the smallest year-over-year contraction in demand since February 2022.

•             Global demand, measured in cargo tonne-kilometers (CTKs), fell 3.4% in June compared to June 2022 (-3.7% for international operations). For the half year, demand slid 8.1% compared to the January-June period of 2022 (-8.7% for international operations). However, demand in June was only 2.4% below June 2019 levels (pre-pandemic).

•             Capacity, as measured by available cargo tonne-kilometers (ACTKs), rose 9.7% compared to June 2022, which was a slower rate compared to the double-digit growth recorded between March and May. This reflects strategic capacity adjustments airlines are making amid a weakened demand environment. Capacity for the first half of 2023 was up 9.9% compared to a year ago. Capacity is now 3.7% above June 2019 (pre-pandemic) levels.

•             Key factors influencing air cargo demand include:

o             Global cross-border trade decreased by 2.4% year-over-year in May, reflecting the cooling demand environment and challenging macroeconomic conditions. The difference between the annual growth rates of air cargo and the global goods trade narrowed to -2.6 percentage points in May, representing the smallest gap since January 2022. However, the gap still suggests that air cargo continues to suffer more than container cargo from the slowdown in global trade.

o             In June, both manufacturing output Purchasing Managers Index or PMI (49.2) and new export orders PMI (47.1) were below the critical threshold represented by the 50 mark, indicating a decline in global manufacturing production and exports.

“We remain hopeful that the difficult trading conditions for air cargo will moderate as inflation eases in major economies. This, in turn, could encourage the central banks to loosen the money supply, which could stimulate greater economic activity,” said Willie Walsh, IATA’s Director General.

 Air cargo market in detail – June 2023                                                                     

                World                    June 2023 (% year-on-year)

                share1                 CTK        ACTK     CLF (%-pt)2         CLF (level)3

TOTAL MARKET 100.0%                 -3.4%     9.7%      -5.8%     43.2%

   Africa 2.0%                     -2.8%     -3.7%     0.4%      44.6%

   Asia Pacific       32.4%                   -3.6%     24.4%    -13.6%  46.8%

   Europe              21.8%                   -2.8%     4.4%      -3.5%     47.6%

   Latin America  2.7%                     7.3%      15.4%    -2.5%     33.7%

   Middle East     13.0%                   0.5%      11.1%    -4.7%     44.6%

   North America               28.1%                   -6.5%     0.7%      -2.9%     37.4%

1% of industry CTKs in 2022                                        2Year-on-year change in load factor        3Load factor level

June Regional Performance

Asia-Pacific airlines saw their air cargo volumes decrease by 3.6% in June 2023 compared to the same month in 2022. This was also a decline compared to May (-2.5%), mainly owing to weak demand on within-Asia markets, although the Asia-North America trade lane saw improved performance. Available capacity in the region increased by 24.4% compared to June 2022. Looking at the first half of 2023, cargo demand was down 6.5% versus the year-ago period against a 27.0% rise in capacity.

North American carriers had a 6.5% decrease in total cargo volumes in June 2023 compared to the same month in 2022, marking the fourth consecutive month in which the region had the weakest performance. This was, however, an improvement compared to May (-8.6%). Europe-North America CTKs shrank by only 2.7% in June, following three months of double-digit contractions. Capacity increased 0.7% compared to June 2022. For the 2023 first half, cargo demand was down 10.5% compared to the 2022 first half, while capacity dipped 0.7%.

European carriers experienced a 2.8% decrease in cargo volumes in June 2023, compared to the same month in 2022. This was an improvement in performance compared to May (-6.6%), in part due to the aforementioned Europe-North America performance. Capacity increased 4.4% compared to June 2022. Cargo demand was down 10.2% for the first six months of 2023 compared to last year, as the half-year capacity rose 2.5%.

Middle Eastern carriers posted a 0.5% increase in cargo volumes in June 2023 versus a year ago. This was a strong turnaround from the 2.9% year-over-year decline registered in May. Capacity rose 11.1% for the month. Both Middle East-Asia and Middle East-Europe route areas saw annual growth. For the first half of the year, cargo demand was down 5.6% compared to a year ago, with an 11.2% hike in capacity.

Latin American carriers had strongest performance in June 2023, with a 7.3% increase in cargo volumes compared to June 2022. This was an improvement compared to May (+3.8%). Capacity in June was up 15.4% over the same month in 2022. For the 2023 first half, cargo demand was up 0.9% versus a year ago, while capacity climbed 18.0%.

African airlines posted a 2.8% decrease in demand compared to June 2022. This was a decline in performance compared to the previous month (-1.9%). Capacity in June was down 3.7% compared to the same month in 2022. For the first half of the year, cargo demand slowed by 4.4% while capacity climbed 1.6%.

Colombo – The International Air Transport Association (IATA) urged Sri Lanka to develop an aviation blueprint so as to generate greater economic growth and prosperity through having a stronger aviation industry.

“Aviation connectivity can play a much bigger role in Sri Lanka’s economic development and social advancement. But this will not happen by chance. Government support will be critical to growing a strong airline sector and developing Colombo as an aviation hub. We urge the government and all industry stakeholders to collaborate on developing an aviation blueprint to strengthen the aviation industry’s competitiveness and bring greater prosperity to Sri Lanka. And IATA stands ready to support through our expertise and sharing of industry best practices,” said Philip Goh, IATA’s Regional Vice President for Asia Pacific.

Aviation has a role to play in 15 of the 17 UN Sustainable Development Goals. Trade and tourism rely on aviation, and this helps to create jobs, alleviate poverty and generate prosperity. In a 2018 IATA study, Sri Lanka’s aviation sector supported some 700,000 jobs and contributed $8 billion to the GDP. This has the potential to increase to over 1 million jobs contributing nearly $30 billion to the GDP by 2038.

In his keynote remarks at Aviation Day Sri Lanka, organized by IATA and the Civil Aviation Authority of Sri Lanka (CAASL), Goh suggested three areas to consider in the aviation blueprint: facilitating sustainable growth, safety, and sustainability.

Facilitating Sustainable Growth: “Sri Lanka’s aviation blueprint needs to facilitate the sustainable growth of the industry and having an updated airport masterplan is the first step. I urge the government to engage in a consultative approach involving airlines to ensure that industry input is factored in,” said Goh,

Goh urged Sri Lanka to digitize processes for passenger and cargo facilitation. “Many of the country’s passenger and cargo processes continue to be paper based. As traffic grows, digitization will be key to address capacity constraints, increase efficiency and improve the travel experience. IATA’s One ID and One Record initiatives can help support this,” said Goh.

Goh also highlighted the need to keep costs low, in particular jet fuel. Airlines pay more for jet fuel in Sri Lanka than at other major airports in Asia. He recognized much has been done in recent months to lower the cost of jet fuel, and encouraged the government to review and consider placing limits or capping the amount that CEYPETCO can mark up for supplying fuel at the airport.

Safety: “It is important for Sri Lanka’s aviation sector to grow sustainably in a safe manner, and IATA is doing our part to support the country’s efforts. Utilizing the International Airlines Training Fund, IATA will support the aviation industry in Sri Lanka by conducting safety related training in August for CAASL and Sri Lankan Airlines,” said Goh.

Goh encouraged the government to explore how the IATA Operational Safety Audit (IOSA) and IATA Safety Audit for Ground Operations (ISAGO) can be used to contribute to greater aviation safety in Sri Lanka.

Sustainability: “I am delighted that net zero carbon from aviation by 2050 is one of the stated policy goals of Sri Lanka’s sustainable aviation environment policy, including the need to ensure the availability of sustainable aviation fuels (SAF) in the country,” said Goh. SAF is expected to abate more than 60% of aviation carbon emissions by 2050.

Goh called on the government to adopt a comprehensive consultation process involving airlines and other aviation stakeholders as the government develops sustainability policies.