Dear Colleagues,
As global passenger demand continues to surge, the aviation industry faces a mounting challenge: supply chain disruptions that could cost airlines more than $11 billion this year alone. A new joint study by IATA and Oliver Wyman, Reviving the Commercial Aircraft Supply Chain, reveals how delays in aircraft and parts production are forcing airlines to operate older fleets, driving up fuel, maintenance, leasing, and inventory costs. With a record 17,000 aircraft backlog in 2024, the ripple effects are being felt across operations, profitability, and growth planning. The slow pace of production is estimated to cost the airline industry more than $11 billion in 2025, driven by four main factors: 1) Excess fuel costs (~$4.2 billion); 2) additional maintenance costs ($3.1 billion); 3) increased engine leasing costs ($2.6 billion); and 4) surplus inventory holding costs ($1.4 billion).
In addition to the mounting costs, supply chain challenges inhibit airlines from deploying sufficient aircraft to meet growing passenger demand. In 2024, passenger demand rose 10.4%, exceeding the capacity expansion of 8.7% and pushing load factors to a record 83.5%. The trend in rising passenger demand continues into 2025. We hope you find this information useful for your own advocacy and negotiation efforts.
As part of our on-going advocacy efforts, IATA has been very active in shaping a variety of legislative and regulatory developments in the region, specifically on passenger rights in Brazil and airport charges in Peru, which pose significant implications for the competitiveness of the aviation sector across the region. Further details are outlined below.
Looking at the latest August data, global air travel demand continued its upward trajectory, with passenger traffic in Latin America and the Caribbean surging by 9.0% year-on-year, outpacing capacity growth and signaling strong market momentum despite a slight dip in load factor. North American carriers saw more modest growth, with demand rising 1.8% and a slight decline in load factor marking the fourth consecutive month of international pressure. Overall, global passenger demand rose 4.6%, with international travel driving the gains and load factors reaching record highs for the month.
On the cargo side of the business, global air cargo demand rose by 4.1% year-on-year in August, with international operations up 5.1%. Capacity also increased, growing 3.7% globally and 5.5% internationally. Regional performance varied: North American carriers experienced a 2.1% decline in demand and a 1.0% drop in capacity, marking the slowest growth among all regions. In contrast, Latin American carriers saw a 2.1% increase in demand and a 5.0% rise in capacity, continuing their positive momentum.
As usual, please find below the latest IATA activities across the Americas region.
Please let me know if you have any questions or suggestions for further action, and thank you for your on-going support.
Peter Cerdá
IATA’s Regional Vice President, The Americas
Americas Focus: Archive
2025: 01-2025 (pdf) 02-2025 (pdf) 03-2025 (pdf) 04-2025 (pdf) 05-2025 (pdf) 06-2025 (pdf) 07-2025 (pdf) 07-2025 Spanish (pdf) 08-2025 (pdf)
08-2025 Spanish (pdf) 09-2025 (pdf) 09-2025 Spanish (pdf)
2024: 01-2024 (pdf) 02-2024 (pdf) 03-2024 (pdf) 04-2024 (pdf) 05-2024 (pdf) 06-2024 (pdf) 07-2024 (pdf) 08-2024 (pdf) 09-2024 (pdf)
2023: 01-2023 (pdf) 02-2023 (pdf) 03-2023 (pdf) 04-2023 (pdf) 05-2023 (pdf) 06-2023 (pdf) 07-2023 (pdf) 08-2023 (pdf)
2022: 01-2022 (pdf) 02-2022 (pdf) 03-22 (pdf) 04-22 (pdf) 05-22 (pdf) 06-22 (pdf)
2021: 01-2021 (pdf) 02-2021 (pdf) 03-2021 (pdf) 04-2021 (pdf) 05-2021 (pdf) 06-2021 (pdf) 07-2021 (pdf)
2020: 01-2020 (pdf) 02-2020 (pdf) 03-2020 (pdf)
2019: Jan 2019 (pdf) Feb 2019 (pdf) May 2019 (pdf) #04 Version (pdf) #05 Version (pdf) #06 Version (pdf)
2018: Jan 2018 (pdf) Feb 2018 (pdf) Mar 2018 (pdf) Apr 2018 (pdf) May 2018 (pdf) Jun 2018 (pdf)
Jul 2018 (pdf) Aug-Sep 2018 (pdf) Oct-Nov 2018 (pdf) Summary 2018 (pdf)
2017: Q4 2017 (pdf) Q3 2017 (pdf) Q2 2017 (pdf) Q1 2017 (pdf)