Author: Admin

Geneva – The International Air Transport Association (IATA) announced that the recovery in air travel demand is continuing in 2023, based on January traffic results.

 •            Total traffic in January 2023 (measured in revenue passenger kilometers or RPKs) rose 67.0% compared to January 2022. Globally, traffic is now at 84.2% of January 2019 levels.

 •            Domestic traffic for January 2023 rose 32.7% compared to the year-ago period, helped by the lifting of the zero-COVID policy in China. Total January 2023 domestic traffic was at 97.4% of the January 2019 level.

 •            International traffic climbed 104.0% versus January 2022 with all markets recording strong growth, led by carriers in the Asia-Pacific region. International RPKs reached 77.0% of January 2019 levels.

“Air travel demand is off to a very healthy start in 2023. The rapid removal of COVID-19 restrictions for Chinese domestic and international travel bodes well for the continued strong industry recovery from the pandemic throughout the year. And, importantly, we have not seen the many economic and geopolitical uncertainties of the day dampening demand for travel,” said Willie Walsh, IATA’s Director General.

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

Total Market      100.0%  67.0%    35.5%    14.7%    77.7%

Africa    2.1%      113.8%  76.9%    12.8%    74.2%

Asia Pacific          22.1%    114.9%  58.8%    20.2%    77.4%

Europe 30.7%    53.2%    27.1%    13.0%    76.2%

Latin America     6.4%      24.3%    20.0%    2.8%      81.3%

Middle East        9.8%      91.1%    42.5%    20.1%    79.1%

North America  28.9%    42.2%    19.6%    12.5%    78.4%

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

 International Passenger Markets

•             Asia-Pacific airlines posted a 376.3% increase in January traffic compared to January 2022, by far the strongest year-over-year rate among the regions, but off of a very low base when much of the region was still closed to travel. Capacity rose 167.1% and the load factor increased 36.6 percentage points to 83.3%, the highest among the regions.

•             European carriers saw a 60.6% traffic rise versus January 2022. Capacity increased 30.1%, and load factor rose 14.2 percentage points to 75.0%.

•             Middle Eastern airlines’ January traffic rose 97.7% compared to January a year ago. Capacity increased 45.9% and load factor climbed 20.8 percentage points to 79.2%.

 •            North American carriers reported an 82.4% traffic increase in January versus the 2022 period. Capacity rose 37.3%, and load factor climbed 19.7 percentage points to 79.6%.

 •            Latin American airlines had a 46.8% traffic increase compared to the same month in 2022. January capacity climbed 34.3% and load factor rose 7.1 percentage points to 82.7%, the second highest among the regions.

 •            African airlines’ traffic rose 124.8% in January 2023 versus a year ago. January capacity was up 82.5% and load factor climbed 13.9 percentage points to 73.7%, the lowest among regions.

Domestic Passenger Markets

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

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

Domestic             42.1%    32.7%    16.3%    9.5%      76.4%

Australia              1.0%      107.3%  50.0%    22.0%    79.7%

Brazil     1.5%      3.0%      5.5%      -2.0%     81.5%

China P.R.            6.4%      37.2%    19.0%    9.4%      70.6%

India      2.0%      92.0%    47.2%    19.9%    85.2%

Japan    1.2%      63.3%    3.0%      25.3%    68.6%

US          19.3%    26.8%    12.0%    9.0%      77.5%

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

•             Australia’s domestic traffic rose 107.3% in January compared to a year ago and now stands at 88.8% of pre-pandemic levels.

 •            China’s domestic RPKs rose 37.2% in January, the first month over month annual increase since August 2022 and is now at 86.3% of January 2019 levels.

 January 2023 (% year-on-year vs 2019)  World share1     RPK        ASK        PLF (%-pt)2         PLF (level)3

Total Market      100.0%  -15.8%  -13.5%  -2.1%     77.7%

International      57.9%    -23.0%  -21.7%  -1.3%     78.6%

Domestic             42.1%    -2.6%     1.2%      -3.0%     76.4%

Botton Line

“With strong travel demand continuing through the traditionally slower winter season in the Northern Hemisphere, the stage is set for an even busier spring and summer. At a time when many are just beginning to enjoy their newly restored travel freedoms, it is especially disappointing to see the Dutch government making plans to limit their movements by unilaterally and unjustly reducing operations at Schiphol Airport,” said Walsh.

View the January Air Passenger Market Analysis (pdf)

For more information, please contact:

Corporate Communications

Tel: +41 22 770 2967

Email: corpcomms@iata.org

Notes for Editors:

•             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.

•             Statistics compiled by IATA Economics using direct airline reporting complemented by estimates, including the use of FlightRadar24 data provided under license.

•             All figures are provisional and represent total reporting at time of publication plus estimates for missing data. Historic figures are subject to revision.

•             Domestic RPKs accounted for about 42.1% of the total market; the 6 domestic markets in this report accounted for 31.3% of global RPKs in 2022.

•             Explanation of measurement terms:

o             RPK: Revenue Passenger Kilometers measures actual passenger traffic

o             ASK: Available Seat Kilometers measures available passenger capacity

o             PLF: Passenger Load Factor is % of ASKs used.

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

•             Total passenger traffic market shares by region of carriers for 2022 in terms of RPK are: Asia-Pacific 22.1%, Europe 30.7%, North America 28.9%, Middle East 9.8%, Latin America 6.4%, and Africa 2.1%.

•             Fly Net Zero

Geneva – The International Air Transport Association (IATA) and airlines are mounting a legal challenge to the Dutch government’s sudden decision to reduce Schiphol airport’s capacity.

Schiphol Airport is already restricted to 500,000 flights annually. The government’s decree would renege on that agreement, reducing Schiphol connectivity to 460,000 flights from November 2023.

IATA and the global airline community believe that this political decision by the Dutch government contravenes EU Regulation 598/2014 on noise-related operating restrictions at EU airports. It also disregards the Chicago Convention, a binding international agreement to which the Netherlands is a signatory. Annex 16 of the Convention contains provisions for The Balanced Approach to Aircraft Noise Management which states are obligated to follow when taking measures to managing the noise impacts of aviation.

Key requirements of EU Regulation 598/2014 and the Balanced Approach are:

•             Consultation with affected parties

•             The use of flight reductions only as a last resort

•             Balancing the needs and concerns of local residents, the environment and the local economy for aviation’s economic and social benefits.

The decision to cut capacity at Schiphol fails to meet these requirements because:

•             No meaningful consultation was undertaken with industry

•             Flight reductions are being imposed as a first resort, rather than as a last resort

•             The need to restore the economic damage to the aviation industry of the Netherlands is not being addressed. Pre-pandemic, aviation supported some 330,000 jobs and $30 billion of economic activity in the Netherlands.

“The Netherlands is handicapping its economy by destroying connectivity. And it is doing it in contravention of EU law and its international obligations. The job-destroying hostile approach to aviation that the Dutch government has chosen is a totally disproportionate response to managing noise. The government has even refused to engage in meaningful consultations and made flight reductions the goal, rather than working with industry to meet noise and emissions reduction goals while restoring employment and revitalizing the post-pandemic economy. The dangerous precedent that this illegal approach creates left no choice but to challenge them in court,” said Willie Walsh, IATA’s Director General.

The airline industry continually deploys quieter aircraft, reducing noise levels by 50% in the last decade. The investment in new fleet also plays a significant role in meeting the aviation industry’s commitment to reduce its CO2 emissions to net zero by 2050, as set out in a Resolution at the IATA AGM in 2021. The industry’s robust plan for reducing CO2 includes the uptake of Sustainable Aviation Fuels, of which airlines operating in and to the Netherlands have been among the leading users.

CNN Indonesia

Rabu, 16:58 WIB

Pemerintah gencar melakukan hilirisasi produk SDA. Ada 21 komoditas yang bakal dilarang ekspor bahan mentahnya hingga 2040. (Arsip Staf Khusus Kementerian Investasi Tina Talisa)

Jakarta, CNN Indonesia — Pemerintah bakal terus melakukan hilirisasi produk sumber daya alam (SDA) dalam negeri hingga memberikan nilai tambah. Setidaknya, ada 21 komoditas yang bakal disiapkan dalam peta jalan investasi untuk hilirisasinya hingga 2040 mendatang.

Menteri Investasi dan Kepala BKPM Bahlil Lahadalia mengatakan pemerintah sudah melarang ekspor nikel sejak 2020. Lalu tahun ini akan dilanjutkan dengan bauksit dan tembaga. Ke depan, hilirisasi ini diperluas hingga mencakup 21 komoditas.

“Selain bauksit, tembaga, timah kita juga sudah bangun peta jalan hilirisasi bagi Indonesia sampai 2040. Itu ada 21 komoditas,” ujarnya dalam webinar Indef, Rabu (8/2).

Menurutnya, 21 komoditas tersebut terbagi dari delapan sektor prioritas antara lain mineral, batu bara, minyak, gas bumi, perkebunan, kelautan, perikanan, dan kehutanan.

“Ini jumlah investasinya perlu sekitar US$545,3 miliar atau Rp8.179,5 triliun (asumsi kurs Rp15 ribu per dolar AS),” imbuhanya.

Menurutnya, ini adalah langkah dan strategi yang dilakukan pemerintah untuk menambah pundi-pundi ke perekonomian. Hal ini terbukti dari larangan ekspor nikel mentah pada 2020 lalu yang memberikan nilai tambah sangat besar.

Pada 2017 sebelum larangan, ekspor produk besi dan baja Indonesia hanya US$3,3 miliar. Lalu, setelah larangan, maka pada 2022 realisasi ekspor produk besi dan baja tercatat sebesar US$27,8 miliar.

“Jadi ini adalah jalan, strategi, yang harus Indonesia lakukan dalam rangka meningkatkan pendapatan per kapita, dorong jadi negara baik dan optimalisasikan sumber daya alam yang ada. Ini ada strategi negara,” pungkasnya.

1. Batu bara

2. Nikel

3. Timah

4. Tembaga

5. Bauksit

6. Besi baja

7. Emas perak

8. Aspal buton

9. Minyak bumi

10. Gas bumi

11. Sawit

12. Kelapa

13. Karet

14. Biofuel

15. Kayu log

16. Getah pinus

17. Udang

18. Perikanan

19. Rajungan

20. Rumput laut

21. Garam

With the launch of CargoWALLET, CargoAi is the first to bridge a gap in the digital cargo marketplace. While making a real-time cargo reservation online has become much easier in recent years, paying for the space has always been a separate affair: bureaucratic, slow, and with various obstacles. CargoWALLET does away with this and “enables shipments to be booked and paid for without an IATA CASS Number, without an AWB stock, AND without any bank guarantee,” CargoAi underlines. CargoForwarder Global (CFG) spoke to Matt Petot (MP), CEO, CargoAi, about its pioneering fintech solution specifically tailored towards supporting small to medium-sized freight forwarders, as well as IATA CASS forwarders that perhaps do not have their own AWB stock, for example.

CFG: CargoWALLET began as a project two years ago. How was the idea developed – was it tried and tested with small and medium forwarders? How do their payment processes work currently, preCargoWALLET?

MP: This has always been on our product roadmap as our goal has been to address the pain points identified by freight forwarders, airlines and our TMS partners in air cargo procurement. We were aware that despite CargoMART serving as a digital conduit for procurement (and accelerating the search, quote, booking process), it would not overcome the barrier that exists where small freight forwarders are not able to book airlines directly because of the complexity of requiring an IATA CASS account or AWB stock.

Also, Air Cargo should be able to use supply chain financing options that already exist in other industries and be able to get long payment terms which is not the case with payment by CASS or directly with the airlines.

Currently for a booking to be made online or offline, the forwarder needs to have an account with the airline which also sometimes means having a bank guarantee on top of being a CASS member.

We started with our key partners, both on the airline and freight forwarder side, to develop the blueprint which has resulted in our successful launch today.

CFG: Which finance provider is in the back end? (PayPal/Stripe/or similar?)

MP: We are not using a sole finance provider. It took us 2 years to build the right banking connections with multiple providers to enable an end-to-end finance payment solution with the objective of ensuring that our solution remained at the same cost as bank transfers in more than 30 currencies. Using paypal or stripe would add around 3% to 5% on top of the air freight cost to our customers, which was not an option.

We also partner with financial providers to offer modern supply chain financing solutions that exist in other industries to facilitate the 30 or 60-day payment terms for our freight forwarders.

CFG: How happy are the airlines with the new payment process? Are there airlines who still prefer not to have bookings from non-IATA members?

MP: All the airlines are very receptive to the idea as it opens new doors for them, allowing them to also tap into different freight forwarders who don’t have an IATA CASS account. Airlines want to work with as many forwarders as possible, but they sometime don’t have the resources to work with the long tail of freight forwarders. With our guaranteed solution for the airlines, they only deal with us and can work with all forwarders digitally.

CFG: Do your competitors cargo.one / WebCargo by Freightos have a comparable payment facility?

MP: Presently, WebCargo by Freightos and cargo.one compete with us on our digital marketplace (CargoMART), and they do not have this kind of extensive payment solution integrated. Solution providers for financial services in air cargo are IATA through its CASS system, or Paycargo, which are ‘standalone’ solutions, not integrated with digital marketplaces, and focused on other business cases.

What we offer through CargoWALLET is unprecedented:

Up to 60 days payment terms to pay for Air Cargo

Ability for a forwarder to do export from another country by buying the air cargo directly with airline rates

Ability for smaller forwarders to work with all airlines instead of being restricted to the ones they have an account/bank guarantee or AWB stock

And all this at the same cost as a bank transfer.

CFG: How are the AWB numbers allocated in the system? (Post-payment?)

MP: CargoAi works directly with the airlines to allocate AWB stock from the start, to CargoWALLET or to the forwarder via CargoWALLET. This is possible even if the forwarder uses the PayLater option, as we have partnered with a credit company to provide supply chain financing.

CFG: How is the CargoWALLET linked to the forwarder’s account? Or is a certain amount paid into the Wallet that forwarder employees can book against?

MP: To answer the second question, yes. Here is a brief overview of that process.

Once there is a CargoMART account, the manager for that Office (i.e. a branch) will have the option to apply for activation, via a form completion. CargoAi will review the application which includes a KYC process. Review will take 2-5 working days.

Once activated, the user account that applied for CargoWALLET will receive an email notification. The email will explain that they need to top up the funds in their wallet to start their first booking with CargoWALLET.

The office level user will need to go to the CargoWALLET management page, click on Top Up and fill in the currency, payment method and amount. After confirmation on the details, an invoice will be automatically sent to their registered office finance email address with bank details for them to proceed with the payment.

Users can exchange money in their wallet to different currencies from the one that they transferred in, so that they can purchase shipments based on the eBooking/billing currency.

CFG: What were the challenges during development? And – aside from funding – how did CargoTech help?

MP: The challenge was that we needed to create a worldwide payment system to cover the 100 countries that our airlines and freight forwarders are in, without adding the huge cost that stripe or paypal are usually adding. It was necessary for us to establish our own payment infrastructure and network in order to present a competitive alternative to the market, while maintaining the same cost as a bank transfer.

Working with the CargoTech group of industry experts was extremely beneficial in terms of innovation and product development as a sounding board to develop our own payment infrastructure and deliver the best possible solution to the industry.

The combined power of industry expertise is also useful – having multiple eyes and ears to the ground on the changing market landscape.

CFG: Is CargoWALLET available for bookings on ALL CargoAi airlines?

MP: Yes, freight forwarders can utilise CargoWALLET for bookings on all airlines whether via CargoMART or CargoCONNECT (an API solution that integrates with our TMS partners).

CFG: Is CargoWALLET available for all forwarders globally? Or is a step-wise rollout planned?

MP: We had successful tests in a lot of pilot countries, and we are making CargoWALLET available in a step wise rollout as we need time to review all our forwarders registrations.

CFG: Do you expect that this new feature will attract new airlines/forwarders?

MP: Absolutely, we expect to see an increase in forwarder registrations on CargoMART as they will now be able to access the whole procurement process within one interface – this will gain them significant time savings and allow them to service their customers much quicker. Our airline partners are very receptive as we bring them a customer base of different freight forwarders who did not necessarily work with them thus increasing their overall distribution and business potential.

Our freight forwarder users are also excited by the longer payment terms and the capability to book air cargo directly with airlines from other countries.

Thank you, Matt Petot!

Brigitte Gledhill

Emirates and Air Canada have signed a memorandum of understanding (MoU) last week to deliver more benefits to air freight customers around the world.

The two carriers will work closely on a number of initiatives, which include expanding cargo interline options and block space agreements, allowing access to more capacity on a larger combined network.

Both airlines bring particular experience in handling unique cargo on their dedicated fleet of freighters and passenger aircraft, including oil and gas drilling equipment, car parts and pharmaceuticals.

Nabil Sultan, senior vice president for cargo at Emirates, said the cooperation with Air Canada will offer added value through more rapid reach to other Canadian cities via the Dubai-based airline’s Toronto and US gateways.

The agreement, pending any required regulatory approvals, builds on the airlines’ strategic commercial partnership announced last year.

The memorandum of understanding was signed at Emirates headquarters in Dubai by Nabil Sultan, divisional senior vice president for cargo at Emirates, and Matthieu Casey, commercial managing director at Air Canada Cargo.

Other Topics: Air Canada Cargo, Air Cargo Network, Air Express, Air Freight Services, Air Logistics, Asia Pacific Air Cargo, Asia Pacific Air Freight, Asia Pacific Air Logistics, Asia Pacific Shipments, Cargo Flights, E-Commerce Logistics, Emirates SkyCargo, Express Delivery, Express Logistics, International Air Shipments, International Express Delivery, Transpacific Air Cargo, Transpacific Air Freight

February 5, 2023 by Payload Asia

Founded in 1991, Singapore-based Cargo Community Network (CCN) provides cargo community systems (CCS) for the air freight industry. The company serves not only air carriers and freight forwarders, but also shippers, ground handling agents, and customs authorities. CCN’s services have evolved to encompass not just air cargo data exchange, but also cargo management, customs compliance, security, screening compliance and other digital solutions for the air freight industry. Payload Asia talks to Teow Boon Ling, CEO of CCN, for an exclusive.

How would you describe the air cargo collaboration platform that you recently launched, CUBEforall? How is it different from other solutions in the market?

We develop new applications on our own; we also connect existing applications, whether built by CCN or others, to create a unified, workflow-based collaborative solution on the CUBEforall platform. In fact, the CUBEforall platform allows users to select applications, ala-carte style, to fit their own processes. Our integration allows data sharing permissions to be activated, allowing users to both share and receive data to create an interconnected system. With our approach, data-silo gaps are bridged, and consignees gain visibility over the entire shipment. In addition, our integration adds value to existing applications used by their customers, so commercial viability is not a concern.

Based on your press releases, it seems that CCN’s operations are mostly in Asia Pacific. Would you say that your air cargo solutions are more compatible or designed towards customers in Asia Pacific?

The objective is to build a comprehensive ecosystem based on the CUBEforall platform, with products and services by technology logistics providers for our customers globally. We work closely with our international customers and are fortunate to have strong support, particularly from our customers in Asia Pacific and Middle East. Our air cargo solutions are IATA compliant and are able to meet the diverse regulatory requirements that differ from country to country. We also customize our solutions to meet local requirements where relevant. With the introduction of CUBEforall, CCN will bring even more benefits to the air cargo community and will accelerate the push to extend its global footprint.

Most would agree that the last 2 years (with Covid and supply chain disruptions) has certainly accelerated the adoption and awareness of digitisation in the industry. Do you agree? What’s your take on this?

The past two years have certainly seen an increased awareness and adoption of digitization in the industry due to the pandemic. However, we recognise that not all companies are at the same level of digital readiness. By creating the CUBEforall platform with a suite of digital-ready applications fully integrated for data collaboration, we aim to democratise the digital transformation to our entire community. Now, all our users ranging from MNCs to SMEs and even the very small setups will have access to our applications on the platform at reasonable costs, and thus are able to collaborate with one another easily.

Which region or business unit, would you say, is your biggest market or customer? Are there points in the air cargo supply chain that are harder to persuade to adopt digital platforms like CUBEforall?

Our biggest markets are Asia-Pacific (including China, India, Australia and New Zealand) and Middle East. Despite having seen success in these markets, certain sections and stakeholders within the air cargo value chain remain difficult to penetrate. One big segment that we wish to bring onto our platform is the Shippers community. This segment originates the shipment process, and hence should be included to reap most benefits out of digitalisation. We believe that providing as many value propositions as relevant to not only the shippers but to all our stakeholders in the community is the key to unlocking these doors, and encourage full industry ecosystem participation. This is why we are actively pursuing partnerships with technology logistics providers. By collaborating and integrating with these providers, we can offer our users versatile solutions that will be increasingly sought after. With stronger value propositions, we will make it easier for potential customers to see the benefits of our offering, and actively seek us out

According to experts, the air freight forwarding market is softening compared to a year ago. What’s your outlook for 2023? What do companies need to consider to stay ahead of the game and buck any negative market trends?

As the COVID-19 pandemic transitions to an endemic stage, the direct-to-consumer ecommerce market volume has declined following the relaxation of lockdown quarantine measures, while geopolitical uncertainties, such as the Russia-Ukraine conflict, have had a further deflationary effect on export orders and stabilised air cargo tonnages to pre-pandemic levels. Companies with the mindset to be agile in thinking, embrace flexibility, and leverage technology solutions in their business processes will emerge stronger, be in a position to maintain resiliency and secure competitive advantage against future negative market forces. CUBEforall is one such solution, helping to automate repetitive data entries, reduce costs and open up new collaboration opportunities with other stakeholders in the air cargo chain.

This interview has been published on Payload Asia’s December-January issue

Other Topics: Air Cargo Network, Air Express, Air Freight Industry, Air Freight Services, Air Logistics, Asia Pacific Air Cargo, Asia Pacific Air Freight, Asia Pacific Air Logistics, Asia Pacific Shipments, Cargo Community Network, Cargo Community Systems, Cargo Flights, E-Commerce Logistics, Express Delivery, Express Logistics, International Air Shipments, International Express Delivery, Transpacific Air Cargo, Transpacific Air Freight

Geneva – The International Air Transport Association (IATA) announced that the recovery in air travel continued in December 2022 and for the full year.

•             Total traffic in 2022 (measured in revenue passenger kilometers or RPKs) rose 64.4% compared to 2021. Globally, full year 2022 traffic was at 68.5% of pre-pandemic (2019) levels. December 2022 total traffic rose 39.7% compared to December 2021 and reached 76.9% of the December 2019 level.

 •            International traffic in 2022 climbed 152.7% versus 2021 and reached 62.2% of 2019 levels. December 2022 international traffic climbed 80.2% over December 2021, reaching 75.1% of the level in December 2019.

•             Domestic traffic for 2022 rose 10.9% compared to the prior year. 2022 domestic traffic was at 79.6% of the full year 2019 level. December 2022 domestic traffic was up 2.6% over the year earlier period and was at 79.9% of December 2019 traffic.

“The industry left 2022 in far stronger shape than it entered, as most governments lifted COVID-19 travel restrictions during the year and people took advantage of the restoration of their freedom to travel. This momentum is expected to continue in the New Year, despite some governments’ over-reactions to China’s re-opening,” said Willie Walsh, IATA’s Director General.

2022 (% year-on-year)   World share1     RPK        ASK        PLF (Level)          PLF (%-pt)

Total Market      100.0%  64.4%    39.8%    78.7%    11.8%

Africa    2.1%      84.9%    51.8%    72.3%    12.9%

Asia Pacific          22.4%    34.0%    16.8%    71.8%    9.2%

Europe 30.4%    100.2%  66.8%    81.2%    13.5%

Latin America     6.4%      62.7%    54.6%    81.3%    4.0%

Middle East        9.8%      144.4%  67.0%    75.4%    23.9%

North America  28.8%    45.5%    28.5%    83.5%    9.8%

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

 International Passenger Markets

•             Asia-Pacific airlines posted a 363.3% rise in full year international 2022 traffic compared to 2021, maintaining the strongest year-over-year rate among the regions. Capacity rose 129.9% and the load factor climbed 37.3 percentage points to 74.0%. December 2022 traffic rose 302.7% compared to December 2021.

•             European carriers’ full year traffic climbed 132.2% versus 2021. Capacity increased 84.0%, and load factor rose 16.7 percentage points to 80.6%. For December, demand climbed 46.5% compared to the same month in 2021.

•             Middle Eastern airlines saw a 157.4% traffic rise in 2022 compared to 2021. Capacity increased 73.8% and load factor climbed 24.6 percentage points to 75.8%. December demand climbed 69.8% compared to the same month in 2021.

•             North American carriers reported a 130.2% annual traffic rise in 2022 compared to 2021. Capacity increased 71.3%, and load factor climbed 20.7 percentage points to 80.8%. December 2022 traffic rose 61.3% compared to the year-ago period.

•             Latin American airlines posted a 119.2% traffic rise in 2022 over full year 2021. Annual capacity climbed 93.3% and load factor increased 9.7 percentage points to 82.2%, the highest among the regions. December demand climbed 37.0% compared to December 2021.

•             African airlines’ annual traffic rose 89.2% in 2022 versus the prior year. Full year 2022 capacity was up 51.0% and load factor climbed 14.5 percentage points to 71.7%, the lowest among regions. December 2022 traffic for African airlines rose 118.8% over the year-earlier period.

Domestic Passenger Markets

2022 (% year-on-year)   World share1  

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

Domestic             42.0%    10.9%    4.3%      78.9%    4.7%

Australia              1.0%      111.7%  63.1%    79.7%    18.3%

Brazil     1.5%      29.9%    31.8%    79.2%    -1.2%

China P.R.            6.5%      -39.8%  -35.2%  65.3%    -5.0%

India      2.0%      48.8%    30.1%    81.4%    10.2%

Japan    1.2%      75.9%    43.4%    61.8%    11.4%

US          19.2%    23.7%    14.0%    84.7%    6.7%

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

•             India’s full year domestic traffic rose 48.8% versus 2021, reaching 85.7% of the 2019 level.

•             Japan’s domestic RPKs rose 75.9% in 2022 and were at 74.1% of the 2019 level.

2022 (% year-on-year vs 2019)   World share in1                RPK        ASK        PLF (Level)          PLF (%-pt)

Total Market      100.0%  -31.5%  -28.1%  78.7%    -3.9%

International      58.0%    -37.8%  -35.0%  78.5%    -3.5%

Domestic             42.0%    -20.4%  -15.7%  78.9%    -4.7%

Botton Line

“Let us hope that 2022 becomes known as the year in which governments locked away forever the regulatory shackles that kept their citizens earthbound for so long. It is vital that governments learn the lesson that travel restrictions and border closures have little positive impact in terms of slowing the spread of infectious diseases in our globally inter-connected world. However, they have an enormous negative impact on people’s lives and livelihoods, as well as on the global economy that depends on the unfettered movement of people and goods,” said Walsh.

Geneva – The International Air Transport Association (IATA) released data for global air freight markets showing that 2022 full-year demand for air cargo took a significant step back from 2021 levels but was close to 2019 performance.

•             Global full-year demand in 2022, measured in cargo tonne-kilometers (CTKs*), was down 8.0% compared to 2021 (-8.2% for international operations). Compared to 2019, it was down 1.6% (both global and international).

•             Capacity in 2022, measured in available cargo tonne-kilometers (ACTKs), was 3.0% above 2021 (+4.5% for international operations). Compared to 2019 (pre-COVID) levels, capacity declined by 8.2% (-9.0% for international operations).

•             December saw a softening in performance: global demand was 15.3% below 2021 levels (-15.8% for international operations). Monthly cargo demand tracked below 2021 levels from March 2022. Global capacity was 2.2% below 2021 levels ( 0.5% for international operations). This was the tenth consecutive monthly contraction compared to 2021 performance.

•             2022 ended with mixed signals:

o             Global new export orders, a leading indicator of cargo demand, have stayed at the same level since October. For major economies, new export orders are shrinking except in Germany, the US, and Japan, where they grew. 

o             Global goods trade decreased by 1.5% in November, down from a 3.4% increase in October.

o             The Consumer Price Index for G7 countries indicated inflation tracking at 6.8% for December. The 0.6 percentage point drop compared to November (7.4%) was the largest over the course of year. Inflation in producer (input) prices reduced to 12.7% in October, its lowest level so far in 2022.  

“In the face of significant political and economic uncertainties, air cargo performance declined compared to the extraordinary levels of 2021. That brought air cargo demand to1.6% below 2019 (pre-pandemic) levels. The continuing measures by key governments to fight inflation by cooling economies are expected to result in a further decline in cargo volumes in 2023 to -5.6% compared to 2019. It will, however, take time for these measures to bite into cargo rates. So, the good news for air cargo is that average yields and total revenue for 2023 should remain well above what they were pre-pandemic. That should provide some respite in what is likely to be a challenging trading environment in the year ahead,” said Willie Walsh, IATA’s Director General. 

December 2022 (% year-on-year)             World share1     CTK        ACTK     CLF (%-pt)2         CLF (level)3

Total Market      100.0%  -15.3%  -2.2%     -7.3%     47.2%

Africa    2.0%      -10.0%  1.3%      -5.4%     43.2%

Asia Pacific          32.4%    -21.2%  -3.9%     -11.6%  52.8%

Europe 21.9%    -17.4%  -7.0%     -7.0%     55.9%

Latin America     2.7%      0.0%      27.6%    -8.9%     32.2%

Middle East        13.0%    -14.4%  2.8%      -9.2%     45.4%

North America  28.0%    -8.5%     -2.9%     -2.5%     40.6%

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

2022 Regional Performance

•             Asia-Pacific airlines posted an 8.8% decrease in demand in 2022 compared to 2021 (-7.4% for international operations) and a capacity increase of 0.5% (+5.8% for international operations). Compared to 2019 (pre-COVID levels), demand was 7.8% below (-3.9% for international operations) and capacity was down 17.2% (-12.2% for international operations). In December, Asia-Pacific airlines recorded the worst performance of all regions, posting a 21.2% decrease in demand (-20.4% for international operations) compared to 2021. Capacity fell 3.9% (-1.4% for international operations) during the same period. Airlines in the region continue to be impacted by lower levels of trade and manufacturing activity and disruptions in supply chains due to China’s rising COVID cases.

•             North American carriers reported a 5.1% decrease in demand in 2022 compared to 2021 (-6.3% for international operations) and a capacity increase of 4.2% (+4.9% for international operations). Compared to 2019 (pre-COVID levels), demand was 13.7% above (+12.7% for international operations) and capacity was up 8.2% (5.1% for international operations). In December, airlines in the region reported an 8.5% decrease in demand for both global and international operations, compared to 2021. Capacity fell 2.9% (+1.8% for international operations) during the same period.

•             European carriers posted the worst year-on-year performance of all regions, with an 11.5% decrease in demand in 2022 compared to 2021 (-11.8% for international operations). During the same period, airlines posted a capacity increase of 0.5% for both global and international operations. Compared to 2019 (pre-COVID levels), demand was 8.7% below (-9.1% for international operations) and capacity was down 16.5% (-17.3% for international operations). In December, airlines in the region posted a 17.4% decrease in demand (-17.9% for international operations) compared to 2021. Capacity fell 7.0% (-7.4% for international operations) during the same period. Airlines in the region continue to be most affected by the war in Ukraine.

•             Middle Eastern carriers reported a decrease of 10.7% for global and international demand in 2022 compared to 2021 and an increase in capacity of 4.3% (+4.5% for international operations). Compared to 2019 (pre-COVID levels), demand was 1.6% below for global and international operations and capacity was down 6.3% (-6.1% for international operations). In December airlines in the region posted a 14.4% decrease in demand for both global and international operations compared to 2021. Capacity increased 2.8% (+3.0% for international operations) during the same period.

•             Latin American carriers posted the strongest year-on-year performance of all regions, with an 13.1% increase in demand in 2022 compared to 2021 (+15.0% for international operations). During the same period, airlines posted a capacity increase of 27.1% (+27.8% for international operations). Compared to 2019 (pre-COVID levels), demand was 4.3% below (-2.6% for international operations) and capacity was down 14.3% (-10.8% for international operations). In December airlines in the region posted stagnant growth in demand (+2.3% for international operations) compared to 2021. Capacity grew 27.6% (+32.7% for international operations) during the same period.

•             African airlines reported a decrease in demand of 1.4% for global and international demand in 2022 compared to 2021 and an increase in capacity of 0.3% (-0.2% for international operations). Compared to 2019 (pre-COVID levels), demand was 8.3% above (+9.4% for international operations) and capacity was down 15.3% (-14.2% for international operations). In December, airlines in the region posted a 10.0% decrease in demand for both global and international operations compared to 2021. Capacity grew 1.3% (+0.2% for international operations) during the same period.

Nairobi – The International Air Transport Association (IATA) and the Government of the Federal Republic of Somalia agreed to deepen and formalize cooperation with the aim of strengthening the economic and social benefits of aviation in Somalia.

Under an agreement signed by Kamil Alawadhi, IATA’s Regional Vice President, Africa and the Middle East, and H.E. Fardowsa Osman Egal, the Minister of Transport and Civil Aviation, Federal Republic of Somalia, a new framework was established that will also see an expansion of IATA’s activities in the country.

“Aviation is a significant contributor to the UN’s Sustainable Development Goals (SDGs), so the potential for a strengthened air transport sector to contribute to Somalia’s development is enormous. This agreement aims to realize that potential for social and economic development by focusing on global standards and best practices. H.E. Minister Fardowsa Osman Egal has a strong vision for a successful aviation sector to contribute to a more prosperous Somalia. And we are determined to support that by turning the words of our agreement into real actions,” said Alawadhi.

The agreement provides the framework to support IATA’s mission for aviation in Africa: the creation of a safe, efficient, sustainable, and economical air transport sector that generates growth, creates jobs, and facilitates international trade and tourism as well as playing an essential role in supporting the UN SDGs through generating connectivity between nations.

“Aviation is essential to the success of Somalia’s development plans.  The Government of Somalia is committed to developing its air transport sector to help promote long-term social and economic growth in the country. And we will ensure that global best practices are at the core of development. This agreement will pave the way for closer cooperation on the priorities for aviation in the country,” said Egal.

Geneva – The International Air Transport Association (IATA) welcomes the reclassification of airspace over Somalia and the surrounding region to Class A. This will take place at one minute past midnight on 26 January 2023 when air traffic control services will be operationally restored after a 30-year disruption.

Some of the region’s busiest airways – linking the African subcontinent south of Ethiopia with the Middle East and Indian subcontinent as well as Western Europe with the Indian subcontinent and Indian Ocean islands – traverse Somalian airspace, which is officially known as the Mogadishu Flight Information Region (FIR). It covers the landmass surrounding the Horn of Africa and extends into the Indian Ocean. 

“The reclassification of the Mogadishu FIR as ‘Class A’ airspace will significantly improve safety in the region and enhance efficiency. This is thanks to the collaborative efforts of the Somalia Airspace Special Coordination Team, comprising the Somali CAA, IATA, the International Civil Aviation Organization, adjacent FIRs and airlines,” said IATA’s Regional Vice President for the Middle East and Africa, Kamil Al-Awadhi.

The reclassification of the airspace, and the operational resumption of air traffic control in the Mogadishu FIR has been made possible with the installation and commissioning of modern radio navigation and other technological infrastructure. It follows a successful trial which began last May.

“The upgrade of air traffic management and improved navigation and communication infrastructure will enhance situational awareness along an increasingly busy air corridor and its intersections with routes linking many of the world’s regions,” added Al-Awadhi. All flights operating in Class A airspace must be cleared by air traffic control which is also responsible for maintaining lateral and vertical separation between aircraft. In the Mogadishu FIR, Class A airspace is the sky above the base altitude of approximately 24,500 feet above mean sea level