Prathama Line

September Passenger Demand Provides Solid End to Third Quarter

Geneva – The International Air Transport Association (IATA) announced that the strong post-pandemic passenger traffic trend continued in September.

• Total traffic in September 2023 (measured in revenue passenger kilometers or RPKs)

rose 30.1% compared to September 2022. Globally, traffic is now at 97.3% of pre-COVID levels.

• Domestic traffic hit a new high for the month of September, as traffic rose 28.3% versus September 2022 and exceeded the September 2019 level by 5.0%.

• International traffic climbed 31.2% compared to the same month a year ago. All markets saw double-digit percentage gains year on year. International RPKs reached

93.1% of September 2019 levels.

“The third quarter of 2023 ended on a high note, with record domestic passenger demand for the month of September and continued strong international traffic,” said Willie Walsh, IATA’s Director General.

September 2023

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

Total Market      100.0%  30.1%    28.8%    0.8%      82.6%

Africa    2.1%      24.6%    27.2%    -1.5%     73.1%

Asia Pacific          22.1%    87.9%    75.5%    5.3%      80.0%

Europe 30.8%    13.8%    12.8%    0.8%      86.0%

Latin America     6.4%      15.7%    14.3%    1.1%      83.9%

Middle East        9.8%      26.1%    22.8%    2.2%      81.6%

North America  28.8%    9.7%      12.5%    -2.1%     83.0%

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

International Passenger Markets

Asia-Pacific airlines had a 92.6% increase in September 2023 traffic compared to September 2022, continuing to lead the regions in terms of annual improvement. Capacity climbed 82.1% and the load factor increased by 4.5 percentage points to 82.5%.

European carriers’ September traffic climbed 15.7% versus September 2022. Capacity increased 14.9%, and load factor edged up 0.6 percentage points to 85.5%.

Middle Eastern airlines saw a 26.6% increase in September traffic compared to a year ago. Capacity rose 23.7% and load factor climbed 1.9 percentage points to 81.8%.

North American carriers had an 18.9% traffic rise in September 2023 versus the 2022 period. Capacity increased 18.0%, and load factor improved 0.6 percentage points to 85.6%.

Latin American airlines’ traffic rose 26.8% compared to the same month in 2022. September capacity climbed 24.7% and load factor rose 1.4 percentage points to 85.8%.

African airlines posted a 28.1% traffic increase in September 2023 versus a year ago. Capacity was up 29.9% and load factor slipped 1.0 percentage points to 72.6%.

Domestic Passenger Markets

Air passenger market in detail – September 2023

 September 2023

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

Domestic             41.9%    28.3%    28.2%    0.1%      80.7%

Dom. Australia4                1.0%      7.2%      11.7%    -3.6%     84.7%

Dom. Brazil4       1.5%      5.0%      3.9%      0.8%      81.4%

Dom. China P.R.4             6.4%      168.7%  135.2%  9.6%      76.7%

Dom. India4        2.0%      17.2%    13.0%    3.1%      84.7%

Dom. Japan4      1.2%      19.9%    4.3%      9.7%      74.9%

Dom. US4            19.2%    5.5%      10.4%    -3.8%     81.3%

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

4 Note: the six domestic passenger markets for which broken-down data are available account for approximately 31.3% of global total RPKs and 74.6% of total domestic RPKs

China’s domestic market continued to perform, with demand up 168.7% year over year. This growth however is measured from a low base in September 2022, when domestic travel restrictions were reintroduced in some Chinese provinces.

Japan’s domestic traffic rebounded strongly from the impact of typhoons in August, as RPKs rose 19.9% compared to September 2022.

 Air passenger market in detail – September 2023

 September 2023

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

Total Market      100%     -2.7%     -3.5%     0.7%      82.6%

International      58.1%    -6.9%     -9.2%     2.1%      83.8%

Domestic             41.9%    5.0%      7.1%      -1.6%     80.7%

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

The Bottom Line

“With the end of 2023 fast approaching, we can look back on a year of strong recovery in demand as passengers took full advantage of their freedom to travel. There is every reason to believe that this momentum can be maintained in the New Year, despite economic and political uncertainties in parts of the world. But we need the whole value chain to be ready. Supply chain issues in the aircraft manufacturing sector are unacceptable. They have held back the recovery and solutions must be found. The same holds true for infrastructure providers, particularly air navigation service providers. Equipment failures, staffing shortages and labor unrest made it impossible to deliver the flying experience our customers expect. A successful 2024 needs the whole value chain to be fully prepared to handle the demand that is coming,” said Walsh.

East 9.8%, Latin America 6.4%, and Africa 2.1%.

Air Cargo Demand up 1.9% in September, Sustaining Moderate Growth Momentum

Geneva – The International Air Transport Association (IATA) released data for September 2023 global air cargo markets, showing continuing demand recovery.

• Global demand, measured in cargo tonne-kilometers (CTKs*), increased by 1.9% compared to September 2022 levels (+1.6% for international operations).

• Capacity, measured in available cargo tonne-kilometers (ACTKs), was up 12.1% compared to September 2022 (+11.0% for international operations). Growth was largely related to international belly capacity which rose 31.5% year-on-year as airlines scaled up operations to meet peak-northern summer travel season demand.

• Several factors in the operating environment should be noted:

   o In September, both the manufacturing output Purchasing Managers Index or PMI (49.7) and new export orders PMI (47.7) saw a slight improvement to the previous month. They remained, however, below the critical 50-point threshold, indicating a continuing, but slightly slower, annual decline in global manufacturing production and exports.

   o Global cross-border trade contracted for the fifth month in a row in August, decreasing 3.8% year-over-year. This reflects the cooling global macroeconomic environment.

   o Annual growth in US consumer prices stabilized in September at 3.7%, the same rate as in August. In Europe and Japan consumer price inflation slowed by 1.0 and 0.2 percentage points, respectively, to 4.9% and 3.0%, (also respectively). In China, deflation-fighting policy measures saw an annual rise in consumer prices of 0.1%.     

   o In September, the average price of jet fuel was USD 131.0 per barrel, marking a 43.1% increase from the May 2023 price. Recouping some of this added cost from surcharges in September contributed to the first increase in air cargo yields since November 2022.

“Air cargo eked out modest growth (1.9%) in September despite falling trade volumes and high jet fuel prices. That clearly shows the strength of air cargo’s value proposition. With the key export order and manufacturing PMIs hovering near positive territory, we can be cautiously optimistic for a strong year-end peak season,” said Willie Walsh, IATA’s Director General.

 Air cargo market in detail – September 2023

 September 2023

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

Total Market      100.0%  1.9%      12.1%    -4.4%     43.8%

Africa    2.0%      -0.1%     2.7%      -1.2%     43.6%

Asia Pacific          32.4%    7.7%      30.5%    -9.9%     46.6%

Europe 21.8%    -1.5%     4.7%      -3.1%     50.0%

Latin America     2.7%      2.3%      14.4%    -3.8%     31.9%

Middle East        13.0%    2.5%      16.1%    -5.6%     42.4%

North America  28.1%    -2.2%     0.2%      -1.0%     39.2%

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

September Regional Performance

Asia-Pacific airlines saw their air cargo volumes increase by 7.7% in September 2023 compared to the same month in 2022. This was a significant improvement in performance compared to August (+4.6%). Carriers in the region benefited from growth on three major trade lanes: Europe-Asia (+9.6%), Middle East-Asia (+7.0%) and Africa-Asia (+12.8%). Available capacity for the region’s airlines increased by 30.5% compared to September 2022 as more belly capacity came online from the passenger side of the business (a year ago, the key Asian markets of Japan and China were still largely under severe COVID-19 travel restrictions).

North American carriers had the weakest performance in September, with a 2.2% decrease in cargo volumes. This was a decline in performance compared to August (-1.4%). Although contractions in the North America-Asia trade lane narrowed (from -4.3% in August to -1.8% in September) and the North America-Europe market stabilized its decline at (-2.5%) for the second month in a row. Carriers in the region did not benefit significantly. Capacity increased moderately by 0.2% compared to September 2022.

European carriers saw their air cargo volumes decline by 1.5% in September compared to the same month in 2022. This was a weaker performance than in August (-0.6%). Carriers in the region suffered from further contractions in the within Europe market (-5.7% in September vs -5.2% in August). Gains made from the expansion in the Middle East-Europe trade lane (+3.3% in September vs +0.5% in August) offset some declines from the within Europe performance. Capacity increased 4.7% in September 2023 compared to 2022.

Middle Eastern carriers had the strongest performance in September 2023, with a 2.5% year-on-year increase in cargo volumes. This was an improvement from the previous month’s performance (+1.3%). Carriers in the region benefited from growth in the Middle East–Asia (+7.0%) and Middle East–Europe markets (+3.3%). Capacity increased 16.1% compared to September 2022.

Latin American carriers experienced a 2.3% increase in cargo volumes compared to September 2022. This was a significant decrease in performance compared to the previous month (+6.2%). Capacity in September was up 14.4% compared to the same month in 2022.

African airlines saw their air cargo volumes decline by 0.1% in September 2023, despite the strong growth of demand on the Africa-Asia trade lane (+12.8%). This was an improvement in performance compared to August (-3.5%). Capacity was 2.7% above September 2022 levels.

Biaya Logistik Nasional 14,29 Persen dari PDB, Sesmenko Perekonomian Beberkan Target pada 2045

Moh. Khory Alfarizi

Rr. Ariyani Yakti Widyastuti

Bagikan

Sekretaris Menteri Koordinator Bidang Perekonomian Susiwijono Moegiarso saat ditemui di acara diskusi bertajuk Peningkatan Kinerja Logistik Melalui Utilisasi Layanan National Logistic Ecosystem di Hotel Borobudur, Jakarta Pusat, pada Selasa, 10 Oktober 2023. TEMPO/ Moh Khory Alfarizi

Sekretaris Menteri Koordinator Bidang Perekonomian Susiwijono Moegiarso saat ditemui di acara diskusi bertajuk Peningkatan Kinerja Logistik Melalui Utilisasi Layanan National Logistic Ecosystem di Hotel Borobudur, Jakarta Pusat, pada Selasa, 10 Oktober 2023. TEMPO/ Moh Khory Alfarizi

TEMPO.CO, Jakarta – Sekretaris Menteri Koordinator Bidang Perekonomian Susiwijono Moegiarso mengatakan biaya logistik nasional sudah mencapai 14,29 persen dari produk domestik bruto (PDB). Hal tersebut berdasarkan data yang sudah dirilis oleh Kemenko Perekonomian, Kementerian Perencanaan Pembangunan Nasional / Bappenas, dan Badan Pusat Statistik (BPS).

Artinya, Susiwijono menjelaskan, biaya logistik nasional sudah cukup baik, di bawah 15 persen. Bahkan targetnya berdasarkan rapat bersama Bappenas, diharapkan di tahun 2045 nanti biaya logistik nasional itu hanya 8 persen dari PDB.

BPS Koreksi Data Surplus Produksi Jagung, Turun 10,03 Persen Dibandingkan Tahun Lalu

“Sehingga sangat efisien sekali, mudah-mudahan ini target kita bersama yang nanti seiring dengan visi Indonesia emas bisa kita capai bersama,” ujar dia dalam acara diskusi bertajuk Peningkatan Kinerja Logistik Melalui Utilisasi Layanan National Logistic Ecosystem di Hotel Borobudur, Jakarta Pusat, pada Selasa, 10 Oktober 2023.

Susiwijono juga mengungkap berbagai kebijakan pemerintah sebagai upaya memperbaiki sistem logistik nasional. Mulai dari pada Peraturan Presiden Nomor 26 Tahun 2012 yang berkaitan dengan cetak biru atau blue print dari Sistem Logistik Nasional (Silognas), atau bahkan ada yang menyebutnya sebagai reformasi logistik 1.0.

Lalu, dilanjutkan dengan berbagai paket kebijakan ekonomi. Yakni paket kebijakan ekonomi XV pada tahun 2017 yang berkaitan dengan pengembangan daya saing untuk penyedia logistik nasional. Selanjutnya, diterbitkannya Instruksi Presiden Nomor 5 Tahun 2020, khusus mengenai penataan ekosistem logistik nasional atau disebut sebagai reformasi logistik 3.0.

 “Di mana sejak awal kita menyiapkan national logistic ecosystem, ini yang tujuanya menghapus berbagai duplikasi dan menggabungkan serta mengintegrasikan melalui digitalisasi,” ucap Susiwijono. “Serta berbagai kemudahan layanan terutama melalui konsep single submission sehingga diharapkan mendorong kinerja logistik kita.”

Selain itu, dia melanjutkan, berbagai upaya pembenahan sistem logistik nasional yang dilakukan juga sudah membuahkan hasil. Menurut Susiwijono, berbagai penerapan implementasi national lgostic ecosystem diberbagai pelabuhan dan bandara, dan dwelling time—proses yang dibutuhkan sejak barang turun dari kapal atau barang ditimbun sampai barang keluar dari pelabuhan—per Agustus 2-23 lalu sudah mencapai 2,52 hari.

 “Ini melampaui target kita yang sebesar 2,9 hari dan hanya sedikit di bawah Singapura untuk di kawasan ASEAN. Saya kira kita apresiasi untuk teman-teman logostik nasional,” tutur dia.

Sementara itu, Deputi Bidang Koordinator Perniagaan dan Industri Kemenko Perekonomian Ali Murtopo Simbolon mengatakan pihaknya bersama dewan pengarah pada Maret 2023 lalu telah melakukan rapat koordinasi. Dalam rapat tersebut telah disampaikan capaian-capaian national logistic ecosystem dan percepatan rencana aksi yang ditargetkan selesai pada 2024 untuk ditarik penyelesaiannya tahun 2023

Di samping itu, pemerintah telah melakukan perluasan implementasi national logistic ecosystem. Di mana dari yang tadinya 14 pelabuhan kini diperluas menjadi 31 pelabuhan dan 6 bandara. Dalam rangka percepatan dan perluasan tersebut telah dilakukan juga koordinasi dan sinergi dengan tim Strategi Nasional Pencegahan Korupsi KPK.

“Termasuk peninjauan langsung ke lapangan untuk mengevaluasi tata kelola di pelabuhan yang menjadi bagian dari national logistic ecosystem,” tutur Ali.

IATA Secures More Data Contributors for CO2 Connect

Madrid, Spain – The International Air Transport Association (IATA) will be adding further airlines and airline groups as data contributors to its CO2 Connect emissions calculator, hence improving the quality and accuracy of the tool. Respective agreements were signed with Aerolineas Argentinas, Air Baltic, LATAM Airlines Group, Luxair and Nile Air during the first World Sustainability Symposium held on 3-4 October 2023 in Madrid, Spain.

“Accessing the most accurate operational data is key to achieving global consistency and alignment in CO2 emissions calculations. Expanding this data pool is essential in providing greater transparency and coherence to passengers and stakeholders alike. This allows for more informed CO2 compensation choices while supporting ESG reporting. In continuously expanding our data sources, we will further enhance IATA CO2 Connect’s calculation quality, far beyond what any theory-based or model-based tools can achieve”, said Frederic Leger, IATA’s Senior Vice President Commercial Products and Services.

Given the complexities and the lack of available data sources needed to accurately calculate CO2 emissions from aircraft, IATA launched CO2 Connect in June 2022, with the objective of using actual airline data, such as fuel burn, belly cargo and load factors in order to provide accurate per passenger CO2 emissions calculations. The CO2 Connect calculator now receives actual operational data from around 150 airlines. Paired with other IATA and open market data sources, IATA CO2 Connect calculates fuel burn data for 74 aircraft types, representing ~98% of the active global passenger fleet, and considers traffic data from 881 aircraft operators representing ~93% of global air travel. This sets it apart from other CO2 calculators which rely on theoretical models and thus apply more assumptions in their calculations.

Through its agreements for the distribution of the CO2 data calculations with companies like ATPCO and Amex GBT, IATA supports airlines in the provision of accurate and consistent passenger CO2 emissions data across sales channels and travel management companies. 

CO2 Connect will continue to evolve and include new features. IATA is already in the process of creating an affordable white-label microsite solution tailored for airlines, leveraging CO2 Connect model and fully powered by IATA. This comprehensive solution will include a compensation feature for environmentally-conscious customers seeking to minimize their carbon footprint.

Methodology

IATA CO2 Connect utilizes the Passenger CO2 Calculation Methodology (RP 1726) adopted by IATA’s Passenger Service Conference in March 2022. This was conceived with support from leading partners from 20 airlines and major aircraft manufacturers, in consultation with international standard-setting bodies and logistics services providers. The methodology includes factors such as:

•    Guidance on fuel measurement, aligned with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)

•    Clearly defined scope to calculate CO2 emissions in relation to airlines’ flying activities 

•    Guidance on non-CO2 related emissions and Radiative Forcing Index (RFI)

•    Weight based calculation principle: allocation of CO2 emission between passenger and belly cargo

•    Guidance on passenger weight, using actual and standard weight

•    Emissions factor for conversion of jet fuel consumption to CO2, fully aligned with CORSIA

•    Cabin class weighting and multipliers to reflect different cabin configurations of airlines

•    Guidance on carbon offsets and sustainable aviation fuel (SAF) as part of the CO2 calculation.   

Air Cargo Demand up 1.5% in August, First Annual Growth Since February 2022

Geneva – The International Air Transport Association (IATA) released data for August 2023 global air cargo markets, showing that year-on-year air cargo demand grew for the first time in 19 months.

•             Global demand, measured in cargo tonne-kilometers (CTKs*), increased by 1.5% compared to August 2022 levels (1.2% for international operations).

 •            Capacity, measured in available cargo tonne-kilometers (ACTKs), was up 12.2% compared to August 2022 (11.8% for international operations). This was largely related to belly capacity which rose 30% year-on-year as airlines ramped-up operations to meet peak-northern summer travel season demand.

•             Several factors in the operating environment should be noted:

o             In August, both the manufacturing output Purchasing Managers Index or PMI (49.4) and new export orders PMI (47.0) saw a slight improvement to the previous month. They remained, however, below the critical threshold represented by the 50 mark, indicating a continuing, if slower, annual decline in global manufacturing production and exports.

o             Global cross-border trade contracted for the fourth month in a row in July, decreasing 3.2% year-over-year. This reflects the cooling demand environment and general macroeconomic conditions. 

o             Inflation saw a mixed picture in August, with an increase in US consumer prices for the second month in a row.  Meanwhile in Europe and Japan, consumer and producer prices fell. In China, which is fighting deflationary pressures, consumer prices rose.

“Air cargo demand grew by 1.5% over the previous August. This is the first year-on-year growth in 19 months, so it is certainly welcome news. But it is off a low 2022 base and market signals are mixed. Looking ahead, while many uncertainties remain, we can take some optimism from PMI data moving towards positive territory. This is particularly significant as we head into air cargo’s traditional peak year-end season,” said Willie Walsh, IATA’s Director General.

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

Total Market      100.0%  1.5%      12.2%    -4.4%     42.0%

Africa    2.0%      -4.7%     3.8%      -3.5%     38.8%

Asia Pacific          32.4%    4.9%      28.5%    -9.9%     44.3%

Europe 21.8%    -0.2%     3.6%      -1.8%     48.4%

Latin America     2.7%      6.2%      13.7%    -2.3%     32.6%

Middle East        13.0%    1.4%      15.7%    -5.8%     40.7%

North America  28.1%    -1.2%     2.7%      -1.5%     37.7%

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

August Regional Performance

•             Asia-Pacific airlines saw their air cargo volumes increase by 4.9% in August 2023 compared to the same month in 2022. This was a significant improvement in performance compared to July (+2.3%).  Carriers in the region benefited from growth on two major trade lanes: Europe-Asia (up from 3.1% in July to 8.8% in August) and Middle East-Asia (up from 2.7% in July to 3.5% in August). Additionally, the within-Asia trade lane also performed better in August, with international CTKs contracting by 4.7% compared to the 9.7% annual decline in July. Available capacity for the region’s airlines increased by 28.5% compared to August 2022 as more belly capacity came online from the passenger side of the business.

•             North American carriers saw their air cargo volumes decrease by 1.2%. This was an improvement in performance compared to July (-5.4%). Carriers in the region benefitted from a slight improvement in growth on two major trade lanes: North America – Europe (2.9% annual contraction in August,1.2 percentage points better than in July) and Asia – North America (declined 4.2% in August compared to 4.4% decrease in July). Capacity increased 2.7% compared to August 2022.

•             European carriers saw their air cargo volumes decline by 0.2% in August compared to the same month in 2022.  This was, however, an improvement in performance versus July (-1.0%). Volumes saw an increase due to the forementioned Europe–Asia performance and a small increase in the Middle East – Europe markets by 0.4%. Capacity increased 3.6% in August 2023 compared to 2022.

•             Middle Eastern carriers experienced a 1.4% year-on-year increase in cargo volumes in August 2023. This was an improvement from the previous month’s performance (-0.1%). The demand on the Middle East–Asia market has been trending upward in the past three months, expanding its year-on-year growth from 1.8% in June to 3.5% in August. Capacity increased 15.7% compared to August 2022.

•             Latin American carriers had the strongest performance in August 2023, with a 6.2% increase in cargo volumes compared to August 2022. This was a significant increase in performance compared to the previous month (+0.5%). Capacity in August was up 13.7% compared to the same month in 2022. 

•             African airlines had the weakest performance in August 2023, with a 4.7% decline in cargo volumes compared to August 2022. This was a significant decrease in performance compared to July (+2.3%). Notably, Africa–Asia routes declined by 1.1% in August following an 11.2% growth in July. Capacity was 3.8% above August 2022 levels.

August Air Cargo Market Analysis (pdf)

For more information, please contact:

Corporate Communications

Tel: +41 22 770 2967

Email: corpcomms@iata.org

Notes for Editors:

•             * Please note that as of January 2020 onwards, we have clarified the terminology of the Industry and Regional series from ‘Freight’ to ‘Cargo’, the corresponding metrics being FTK (changed to ‘CTK’), AFTK (changed to ‘ACTK’), and FLF (changed to ‘CLF’), in order to reflect that the series have been consisting of Cargo (Freight plus Mail) rather than Freight only. The data series themselves have not been changed.

•             IATA (International Air Transport Association) represents some 300 airlines comprising 83% of global air traffic.

•             You can follow us at twitter.com/iata for announcements, policy positions, and other useful industry information.

•             Explanation of measurement terms:

o             CTK: cargo tonne-kilometers measures actual cargo traffic

o             ACTK: available cargo tonne-kilometers measures available total cargo capacity

o             CLF: cargo load factor is % of ACTKs used

•             IATA statistics cover international and domestic scheduled air cargo for IATA member and non-member airlines.

•             Total cargo traffic market share by region of carriers in terms of CTK is: Asia-Pacific 32.4%, Europe 21.8%, North America 28.1%, Middle East 13.0%, Latin America 2.7%, and Africa 2.0%.

•             Fly Net Zero

Recognizing 20 Years of Safety Improvements with IOSA

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

Fuel Efficiency: No Stone Unturned in Quest for Net Zero

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.

Dangerous Goods Survey Highlights Future Supply Chain Challenges

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.

Air Cargo Demand Strengthens Despite Challenges in July

 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.

Controversial Schiphol Flight Cuts Must Not Be Pushed Through by a Caretaker Government

 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.