February 7, 2011 - The International Air Transport Association (IATA) reported full-year 2010 demand statistics for international scheduled air traffic that showed an 8.2% increase in the passenger business and a 20.6% increase in freight.

Demand growth outstripped capacity increases of 4.4% for passenger and 8.9% for cargo. Average passenger load factor for the year was 78.4% which is a 2.7 percentage point improvement on 2009. The freight load factor saw a 5.2 percentage point improvement to 53.8%. 

Compared to the pre-recession levels of early 2008, December air travel volumes were 4% higher. Air freight was 1% higher than pre-recession levels; however volumes have fallen 5% since the peak of the post-recession inventory re-stocking boom in early 2010. 

North American carriers recorded year-on-year increases in passenger demand of 7.4% in 2010. A key feature in 2010 was the capacity discipline, where full-year capacity was up by just 3.9% (leading to a sharp recovery in profits). The passenger load factor at 82.2% for the full year (up from 79.6% in 2009) may prove difficult to maintain if capacity additions accelerate over the period ahead. Passenger demand in December increased 6.7%. 

Middle Eastern carriers reported the strongest full year growth at 17.8% on the back of a 13.2% capacity increase fueled largely by aircraft deliveries to Gulf-based airlines. Load factors for the region showed a 3 percentage point increase to 76.0%. December demand was 14.1% above previous year levels and 35% higher than in December 2008, illustrating the structural shift that is taking place in the industry as a result of the region?s expansion. 

Latin American carriers saw the whole year demand grow 8.2% despite a 1.1% decrease in December, a reflection of the demise of Mexicana.  But the reality is that for 2010 overall, the total is almost 8% more than 2008. 

African carriers experienced a sharp rebound of nearly 12.9% in 2010, although load factors remained well below the industry average, at 69.1%. Their year ended with December demand at 11.7% above previous year levels. 

Freight demand growth varied wildly over the year from a high of 35.2% in May to a low of 5.8% in November. Overall the industry is trending towards normal growth pattern in line with the historical growth rate of 5-6%. 

The regional variation in growth remains particularly marked. Latin American carriers recorded the highest full-year growth rate of 29.1%, followed by Middle East carriers (accounting for 11% of the market) at 26.7%, Asia Pacific airlines (with a 45% market share) grew by 24.0%, Africa at 23.8% and North America by 21.8%.  Against these industry gains, Europe?s 10.8% growth stands out as exceptionally weak.