Airline capacity crunch looms

The International Air Transport Association (IATA) is warning of a capacity crunch in some regions even as data for September this year showed global passenger demand growing.

- MARIANNE GO

The expected crunch, of course, will be the result of the shortage in the timely delivery of aircraft orders that piled up with the resurgence of air travel following the pandemic in 2020 that nearly grounded international travel to a halt and resulted in the cancellation of several aircraft orders at that time.

Unfortunately, the supply problem is now exacerbated by the ongoing problem of major aircraft manufacturer Boeing which is facing a contentious labor problem on top of its legal problems resulting from its series of manufacturing defects.

According to data released by the IATA which represents some 330 airlines comprising more than 80 percent of global air traffic, total demand as measured in revenue passenger kilometers (RPK – which measures actual passenger traffic) was up by 7.1 percent compared to September last year, an all-time high for September. Total capacity, measured in available seat kilometers (ASK – which measures available passenger capacity), was up by 5.8 percent year-on-year. The September load factor was 83.6 percent (+1.0 ppt compared to September 2023).

International demand rose 9.2 percent compared to September last year while capacity was up 9.1 percent yearon-year and the load factor rose to 83.8 percent (+0.1 ppt compared to September 2023). Domestic demand rose 3.7 percent compared to September 2023 while capacity was up 0.7 percent year-on-year and the load factor was 83.3 percent (+2.4 ppt compared to September 2023).