Air Passenger Demand Surging.

The press note from the International Air Transport Association (IATA) you're mentioning highlights a significant recovery in passenger demand for air travel as of February 2023, compared to the same month in the previous year. Here's a breakdown of the key points mentioned:

1. Overall Passenger Demand Increase: There was a 21.5% increase in passenger demand. This indicates a strong recovery trajectory for the airline industry, which has faced unprecedented challenges due to the COVID-19 pandemic.

2. International Demand: International passenger demand saw a robust increase of 26.3% compared to February 2023. This is a positive sign that global travel restrictions are easing and that there is pent-up demand for international travel.

3. International Capacity and Load Factor: The capacity for international flights was up by 25.5% year-on-year, with the load factor (the percentage of available seating capacity that is filled with passengers) improving to 79.3%, a slight increase of 0.5 percentage points compared to February 2023. This improvement in the load factor, despite the increase in capacity, suggests that airlines are managing their growth in supply in line with the growth in demand.

4. Domestic Demand: Domestic travel demand also showed a significant increase, rising by 15.0% compared to February 2023. This reflects a continued recovery in domestic markets, which started to recover earlier than international markets in many regions.

5. Domestic Capacity and Load Factor: For domestic flights, the capacity was up by 9.4% year-on-year, with the load factor reaching 82.6%, which is a substantial increase of 4.0 percentage points compared to February 2023. The higher growth rate in demand compared to capacity growth for domestic flights resulted in a higher load factor, indicating efficient capacity management by airlines in domestic markets.

These figures suggest that the airline industry is on a path of recovery, with both international and domestic markets showing strong demand. The increase in load factors, both internationally and domestically, indicates that airlines are successfully aligning their capacity with the recovering demand, which is crucial for their financial health and operational efficiency. This recovery is likely driven by the lifting of travel restrictions, the rollout of vaccines, and a strong desire for travel among the global population after a period of lockdowns and travel bans.