GENEVA, 5 February 2021: Airlines suffered the worst traffic decline in aviation history during 2020 and forward bookings suggest the first quarter of 2021 might not bring a marked improvement.

Earlier this week the International Air Transport
Association (IATA) announced full-year global passenger traffic results for
2020 showing that demand (revenue passenger kilometres or RPKs) fell by 65.9%
compared to the full year of 2019 by far the sharpest traffic decline in
aviation history. The outlook remains grim for Q1 2021 as advance bookings have
been falling sharply since late December.

International passenger demand in 2020 was 75.6% below 2019
levels. Capacity, (measured in available seat kilometres or ASKs) declined
68.1%, and load factor fell 19.2 percentage points to 62.8%.

Domestic demand in 2020 was down 48.8% compared to 2019.
Capacity contracted by 35.7% and load factor dropped 17 percentage points to
66.6%.

December 2020 total traffic was 69.7% below the same month
in 2019, little improved from the 70.4% contraction in November. Capacity was
down 56.7%, and load factor fell 24.6 percentage points to 57.5%.

Bookings for future travel made in January 2021 were down
70% compared to a year ago, putting further pressure on airline cash positions
and potentially impacting the timing of the expected recovery.

IATA’s baseline forecast for 2021 is for a 50.4% improvement
on 2020 demand that would bring the industry to 50.6% of 2019 levels. While
this view remains unchanged, there is severe downside risk if more severe
travel restrictions in response to new variants persist. Should such a scenario
materialize, demand improvement could be limited to just 13% over 2020 levels,
leaving the industry at 38% of 2019 levels.

“Last year was a catastrophe. There is no other way to describe it. What recovery there was over the Northern hemisphere summer season stalled in autumn and the situation turned dramatically worse over the year-end holiday season, as more severe travel restrictions were imposed in the face of new outbreaks and new strains of COVID-19.” said  IATA’s director general and CEO Alexandre de Juniac.

2020 calendar year (% year-on-year) World share1 RPK ASK PLF (%-pt)2 PLF (level)3
Total Market 100.0% -65.9% -56.5% -17.8% 64.8%
Africa 1.9% -68.8% -61.0% -14.4% 57.4%
Asia Pacific 38.6% -61.9% -53.9% -14.3% 67.5%
Europe 23.6% -69.9% -62.1% -17.4% 67.8%
Latin America 5.7% -62.1% -58.3% -7.7% 74.9%
Middle East 7.4% -72.2% -63.3% -18.5% 57.6%
North America 22.7% -65.2% -50.2% -25.6% 59.2%

1% of industry RPKs in 2020  2Year-on-year change in load
factor 3Load Factor Level

International Passenger Markets

  • Asia-Pacific
    airlines
    ’ full-year traffic plunged
    80.3% in 2020 compared to 2019, which was the deepest decline for any region. It
    fell 94.7% in the month of December amid stricter lockdowns, little changed
    from a 95% decline in November. Full-year capacity was down 74.1% compared to
    2019. Load factor fell 19.5 percentage points to 61.4%.
  • European
    carriers
    saw a 73.7% traffic decline
    in 2020 versus 2019. Capacity fell 66.3% and load factor decreased 18.8
    percentage points to 66.8%. For the month of December, traffic slid 82.3%
    compared to December 2019, an upturn over the 87% year-to-year decline in
    November reflecting pre-holiday momentum that was reversed toward the end of
    the month.
  • Middle
    Eastern airlines
    ‘ annual
    passenger demand in 2020 was 72.9% below 2019. Annual capacity fell 63.9% and
    load factor plummeted 18.9 percentage points to 57.3%. December’s traffic was
    down 82.6% compared to December 2019, improved from an 86.1% drop in November.
  • North
    American airlines
    ‘ full-year
    traffic fell 75.4% compared to 2019. Capacity dropped 65.5%, and load factor
    sank 23.9 percentage points to 60.1%. December demand was down 79.6% compared
    to the same month a year ago, a pick-up over an 82.8% drop in November
    reflecting a holiday surge.
  • Latin
    American airlines
    had a 71.8%
    full-year traffic decline compared to 2019, making it the best performing
    region after Africa. Capacity fell 67.7% and load factor dropped 10.4
    percentage points to 72.4%, by far the highest among regions. Traffic fell
    76.2% for the month of December compared to December 2019, somewhat improved
    from a 78.7% decline in November.
  • African airlines’ traffic fell 69.8% last year compared to 2019, which was the best performance among regions. Capacity dropped 61.5%, and load factor sank 15.4 percentage points to 55.9%, lowest among regions. Demand for the month of December was 68.8% below the year-ago period, well ahead of a 75.8% decline in November. Carriers in the region have benefitted from somewhat less severe international travel restrictions compared to the rest of the world.