Asia-Pacific leads air passenger demand growth in June; jet fuel prices rise

Global air passenger demand, measured in revenue passenger kilometers (RPK), rose 9.1% year on year in June, driven by the summer holiday season, data from the International Air Transport Association showed July 31 showed, giving a boost to jet fuel prices.

International demand rose 12.3% on the year, with Asia-Pacific leading the growth at 22.6%, followed by Africa and Latin America at 16.9% and 15.3%, respectively. Total capacity, measured in available seat kilometers, was also up 8.5% from June 2023.

Reflecting stronger demand for jet fuel during the month, the Platts-assessed FOB Singapore jet fuel/kerosene cargo flat price averaged $97.33/b in June, rising from $95.43/b in May, S&P Global Commodity Insights data showed.

"Demand grew across all regions as the peak Northern summer travel season began in June. And with overall capacity growth lagging demand we saw a very strong average load factor of 85% achieved in both domestic and international operations," IATA Director General Willie Walsh said.

While most regions maintained double digit growth in international passenger markets, almost all saw a deceleration compared with May. Nonetheless, "international travel demand is strong and keeps showing promise for the future," the IATA said.

In domestic markets, RPK rose 4.3% on the year in June but was largely unchanged on the month, IATA figures showed. China's domestic RPK, in particular, rose 5.5% year on year, underpinned by the beginning of the summer holidays.

Likewise, India's domestic demand in June rose 5.2% on the year, while demand in Australia and Japan contracted 1% and 0.2% over the same period.

Asia-Pacific leads air cargo demand growth

Meanwhile, total air cargo demand -- measured in cargo ton-kilometers (CTK) -- was up 14.1% on the year, increasing for the seventh consecutive month in double digits, IATA data showed.

Asia-Pacific airlines led the growth, rising 17% year on year in June.

"Air cargo demand surged in June. Strong growth across all regions and major trade lanes combined for a record-breaking first-half performance in terms of CTKs," Walsh said.

"Maritime shipping constraints and a booming e-commerce sector are among the strongest growth drivers. Meanwhile, the sector has remained largely impervious to ongoing political and economic challenges, and the US customs crackdown on e-commerce deliveries from China," he added.

IATA expects air cargo demand to remain strong going into the second half of 2024.