The recovery in air travel decelerated in August compared with July as government actions in response to concerns over the COVID-19 Delta variant cut deeply into domestic travel demand.

  • Total demand for air travel in August 2021 (measured in revenue passenger kilometers or RPKs) was down 56.0% compared with August 2019. This marked a slowdown from July, when demand was 53.0% below July 2019 levels.  
  • This was entirely driven by domestic markets, which were down 32.2% compared with August 2019, a major deterioration from July 2021, when traffic was down 16.1% versus two years ago. The worst impact was in China, while India and Russia were the only large markets to show a month-to-month improvement compared with July 2021. 

International passenger demand in August was 68.8% below August 2019, which was an improvement compared with the 73.1% decline recorded in July. All regions showed improvement, which was attributable to growing vaccination rates and less stringent international travel restrictions in some regions.

“August results reflect the impact of concerns over the Delta variant on domestic travel, even as international travel continued on a snail’s pace toward a full recovery that cannot happen until governments restore the freedom to travel. In that regard, the recent US announcement to lift travel restrictions from early November on fully vaccinated travelers is very good news and will bring certainty to a key market. But challenges remain, September bookings indicate a deterioration in international recovery. That’s bad news heading into the traditionally slower fourth quarter,” said Willie Walsh, IATA’s Director General.

The rapid slowdown in the domestic traffic recovery in August should send two messages to governments, Walsh continued. “The first is that this is not the time to step away from continuing support of the industry, both financial and regulatory. The second is the need to apply a risk-based approach to managing borders,” he said.
 

International passenger markets

  • European carriers’ August international traffic declined 55.9% versus August 2019, significantly bettering the 63.2% decrease in July compared with the same month in 2019. Capacity dropped 45.0% and load factor fell 17.7 percentage points to 71.5%.
  • Asia-Pacific airlines saw their August international traffic fall 93.4% compared with August 2019, barely improved over the 94.5% drop registered in July 2021 versus July 2019 as the region continues to have the strictest border control measures. Capacity dropped 85.7% and the load factor was down 44.9 percentage points to 37.9%, by far the lowest among regions.
  • Middle Eastern airlines had a 69.3% demand drop in August compared to August 2019, improved upon the 73.6% decrease in July, versus the same month in 2019. Capacity declined 55.0%, and load factor deteriorated 26.2 percentage points to 56.2%. 
  • North American carriers experienced a 59.0% traffic drop in August versus the 2019 period, much improved on the 61.7% decline in July compared with July 2019. Capacity sank 48.5%, and load factor dipped 18.0 percentage points to 70.3%.
  • Latin American airlines saw a 63.1% drop in August traffic, compared with the same month in 2019, improved over the 68.3% decline in July compared to July 2019. August capacity fell 57.3% and load factor dropped 11.4 percentage points to 72.6%, which was the highest load factor among the regions for the eleventh consecutive month. 
  • African airlines’ traffic fell 58.5% in August versus two years’ ago, somewhat improved over the 60.4% decline in July compared with July 2019. August capacity was down 50.1% and load factor declined 12.7% to 63.0%.

 

Credit | Evgenia Parajanian /Shutterstock
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