The International Air Transport Association (IATA) has reported a 21.5% rise in total demand for airline travel globally in February compared to the same month last year. However, North America was the only market that did not increase its demand by double digits, according to IATA data comparing February 2023 to the same month in 2022. Willie Walsh, the chief of IATA, cautioned politicians against making flying more expensive with new taxes.
North America has fallen behind the rest of the world in terms of increased demand for airline travel. Asia Pacific led the increase in revenue passenger kilometers (RPK) at 37.8%, followed by Africa at 22.5%. Despite this, demand in North America only saw an 8.9% increase, representing around a quarter of the global airline market.
The more significant rises in other parts of the world might indicate an ongoing recovery from the pandemic, which took place at a faster rate in some regions than others. Willie Walsh expressed optimism about the industry’s prospects in 2024, citing increased demand and more investment in green technologies to help reduce the industry’s climate impact. However, he cautioned politicians against implementing new taxes that could destabilize this positive trend and increase travel expenses.
Europe’s proposals for uncompetitive tax plans were specifically pointed out as a cause for concern by Walsh. He urged policymakers to focus on promoting economic growth rather than punishing successful businesses with excessive taxes that would lead to higher prices for consumers and negatively impact tourism and trade.
