IATA says April was the cruellest month for the industry

June 5th 2020

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While the April traffic report from the International Air Transport Association (IATA) made for grim reading, the figures "might represent the lowest point" in the crisis that has engulfed the industry due to the coronavirus pandemic. Read More »

IATA said demand, measured by revenue passenger kilometres (RPK), plummeted 94.3% in April compared with the prior corresponding period.

The airline lobby group's air passenger market analysis report said it was the largest contraction since it began collecting traffic data in 1990, as travel restrictions and closed borders shut down air travel in April.

Capacity, or available seat kilometres (ASK), was cut by 87%. Passenger load factor tumbled 46.6 percentage points to 36.6%.

IATA said there were recent signs of encouragement that air travel had turned the corner and noted daily flights had risen 30% between April 21 and May 27, primarily in domestic markets and off a low base.

IATA director general and CEO, Alexandre de Juniac, said "April was our cruellest month". It “was a disaster for aviation as air travel almost entirely stopped”, he said.

“But April also may represent the nadir of the crisis. Flight numbers are increasing. Countries are beginning to lift mobility restrictions," de Juniac said in a statement.

“Business confidence is showing improvement in key markets such as China, Germany and the U.S. These are positive signs as we start to rebuild the industry from a stand-still.

"The initial green shoots will take time – possibly years – to mature.”

IATA's monthly traffic report showed Asia-Pacific carriers suffered an 88.5% drop in demand, or RPKs, in April compared with a year earlier. It was the smallest decline among the six regions listed in the IATA report, with Africa suffering the biggest drop at 98.3%.

Asia-Pacific airlines cut ASKs by 88.4% and load factor fell 28.2 percentage points, to 53.8%.

Among the big domestic markets in the region, China and Japan posted a drop in demand of 66.6% and 88.7%, respectively.

IATA said the Mainland market had showed signs of a "tentative recovery", as domestic flights resumed amid the easing of some restrictive measures in the country after the number of confirmed cases fell close to zero.

While Japan had not implemented a widespread lockdown, the country did impose a State of Emergency in April due to an increase in COVID-19 cases.

The association’s monthly cargo report, also published this week, reported international cargo capacity, measured by available cargo tonne kilometres (ACTK), fell 42% in April as a consequence of the sharp cuts in passenger operations caused by the pandemic. Demand, or cargo tonne kilometres (CTK), dropped by 27.7% in the month.

The IATA boss warned the severe capacity crunch in air cargo was "damaging global supply chains" and leading to longer shipping times and higher costs.

Asia-Pacific airlines recorded a 28.1% fall in demand for international air cargo and capacity decreased 42.5%. IATA said the large Asia-North America market recorded less of a decline in demand, at 7.3%, due to the rise in movement of personal protective equipment (PPE).