annual-review-2022.pdf

IATA

Annual

Review

2022

Contents

IATA Annual Review 2022

Contents

IATA Annual Review 2022

04 Members’ list

06 Willie Walsh, Director General

08 Robin Hayes Chair, Board of Governors

11 Industry Story

16 Safety

22 Security

24 Regulations

30 Environment and Sustainability

34 Passenger Experience

36 Cargo

40 Financial Services

42 Diversity & Inclusion

44 Airline Retailing

Contents

International Air Transport Association

Annual Review 2022

78th Annual General Meeting and

World Air Transport Summit, Doha, Qatar

Members’ list

IATA Annual Review 2022

ABX Air

Aegean Airlines

Aer Lingus

Aero Republica



Aerolineas Argentinas

Aeromar

Aeromexico

Africa World Airlines

Air Algerie

Air Arabia

Air Astana

Air Austral

Air Baltic

Air Botswana

Air Burkina

Air Cairo

Air Caledonie

Air Canada

Air Caraibes

Air China

Air Corsica

Air Dolomiti

Air Europa

Air France

Air Guilin

Air India

Air Koryo

Air Macau

Air Madagascar

Air Malta

Air Mauritius

Air Moldova

Air New Zealand

Air Niugini

Air Nostrum

Air Peace

Air Serbia

Air Seychelles

Air Tahiti

Air Tahiti Nui

Air Tanzania

Air Transat

Air Vanuatu

AirBridgeCargo Airlines

Aircalin

Airlink

Alaska Airlines

Albastar

Allied Air

AlMasria Universal

Airlines

American Airlines

ANA

APG Airlines

Arkia Israeli Airlines

Asiana Airlines

ASKY

ASL Airlines France

Atlantic Airways

Atlas Air

Austrian

Avianca

Avianca Costa Rica

Avianca Ecuador

Azerbaijan Airlines

Azores Airlines

Azul Brazilian Airlines

Badr Airlines

Bahamasair

Bamboo Airways

Bangkok Airways

Batik Air

Batik Air Malaysia

Belavia Belarusian

Airlines

Biman Bangladesh

Airlines

Binter Canarias

Blue Air

BoA Boliviana de

Aviacion

Braathens Regional

Airways

British Airways

Brussels Airlines

Bulgaria Air

Cabo Verde Airlines

CAL Cargo Airlines

Camair-Co

Cambodia Angkor Air

Capital Airlines

Cargojet Airways

Cargolux

Caribbean Airlines

Carpatair





China Airlines

China Cargo Airlines

China Eastern

China Express Airlines

China Postal Airlines

China Southern Airlines

CityJet

Condor

Congo Airways

Copa Airlines

Corendon Airlines

Corsair International

Croatia Airlines

Cubana

Cyprus Airways

Czech Airlines

Delta Air Lines

DHL Air

DHL Aviation

Eastern Airlines

Eastern Airways

Egyptair

EL AL

Emirates

Ethiopian Airlines

Etihad Airways

EuroAtlantic Airways

European Air Transport

Eurowings

EVA Air

Evelop Airlines

FedEx Express

Fiji Airways

Finnair

Fly Baghdad



FlyEgypt

Flynas

Flyone

Freebird Airlines

French Bee

Fuzhou Airlines

Garuda Indonesia

Georgian Airways

German Airways

GOL Linhas Aereas

Gulf Air

GX Airlines

Hahn Air

Hainan Airlines

Hawaiian Airlines

Hebei Airlines

Hi Fly

Hong Kong Air Cargo

Hong Kong Airlines

Hong Kong Express

Airways

Iberia

Icelandair

IndiGo

Iran Air

Iran Airtour Airline

Iran Aseman Airlines

Israir

ITA Airways

Japan Airlines

Japan Transocean Air

Jazeera Airways

Jeju Air

JetBlue

Jin Air

Jordan Aviation

Juneyao Airlines

Kam Air

Kenya Airways

KLM

Korean Air

Kunming Airlines

Kuwait Airways

Members’ list

IATA Annual Review 2022

LAM

Lao Airlines

LATAM Airlines Brasil

LATAM Airlines Colombia

LATAM Airlines Ecuador

LATAM Airlines Group

LATAM Airlines Paraguay

LATAM Airlines Peru

LATAM Cargo Brasil

LATAM Cargo Chile

Loong Air

LOT Polish Airlines

Lucky Air

Lufthansa

Lufthansa Cargo

Lufthansa CityLine

Luxair

Malaysia Airlines

Mandarin Airlines

Martinair Cargo

Mas Air

Mauritania Airlines

International

MEA

MIAT Mongolian Airlines

MNG Airlines

Myanmar Airways

International

National Airlines

NCA Nippon Cargo

Airlines

Neos

Nesma Airlines

Nile Air

NordStar

Nordwind Airlines

Nouvelair

Okay Airways

Olympic Air

Oman Air

Overland Airways

Paranair

Pegas Fly

Pegasus Airlines

PGA Portugalia Airlines

Philippine Airlines

PIA Pakistan

International Airlines

Polar Air Cargo

Poste Air Cargo

Precision Air

Privilege Style

Qantas

Qatar Airways

Qazaq Air

Ravn Alaska

Rossiya Airlines

Royal Air Maroc

Royal Brunei

Royal Jordanian

Ruili Airlines

RusLine

RwandAir

S7 Airlines

Safair

SAS

SATA Air Acores

Saudi Arabian Airlines

SCAT Airlines

SF Airlines

Shandong Airlines

Shanghai Airlines

Shenzhen Airlines

Sichuan Airlines

Silk Way West Airlines

Singapore Airlines

SKY Airline

Smartavia

Smartwings

Solomon Airlines

Somon Air

South African Airways

SpiceJet

SriLankan Airlines

SunExpress

Suparna Airlines

SWISS

Syrianair

TAAG Angola Airlines

TACA

TAP Portugal

TAROM

Tassili Airlines

Thai Airways

International

Thai Lion Air

Thai Smile

Tianjin Airlines



Tunisair

Turkish Airlines

T’way Air

Ukraine International

Airlines

UNI AIR

United Airlines

UPS Airlines

Ural Airlines

Urumqi Air

UTair

Uzbekistan Airways

Vietjet

Vietnam Airlines

Virgin Atlantic

Virgin Australia

Vistara

Volaris

Volotea

Vueling

Wamos Air

West Air

WestJet

White Airways

Wideroe

World 2 Fly

Xiamen Airlines

YTO Cargo Airlines

Willie Walsh, Director General

IATA Annual Review 2022

WILLIE WALSH, DIRECTOR GENERAL

Keeping the

worldconnected

viation is resilient and on

the rise. After the worst

downturn in our history, we

have turned the corner on

the COVID-19 pandemic.

Industry losses are expected to

reduce to $9.7 billion in 2022; down

from $42.1 billion in 2021. That is a

huge improvement from losses of

$137.7 billion in 2020.

In growing numbers and with

rising excitement and enthusiasm,

peopleare again enjoying the

freedom to travel, to connect

withone another, and to see the

world. By the end of 2023, most

regions will be at—or exceeding—

pre-pandemic levels of demand.

Pandemic lessons

Looking back at the pandemic,

wecan point to our service

with pride. Where permitted by

governments, airlines kept the

world connected. Airlines kept

vital supply lanes open to deliver

lifesaving vaccines and medical

supplies. And they operated to the

highest levels of safety throughout.

Over and over, the aviation

workforce rose to the occasion.

In fact, the importance of aviation

was made absolutely clear

by thepandemic restrictions.

Peoplerecognized that their

qualityof life deteriorated and

economies suered.

This pandemic will not be the last.

It is vital, therefore, that we draw

the correct lessons so that we can

be better prepared next time. Top

of the list of lessons learned is that

travel restrictions did little to contain

the spread of COVID-19. The World

Health Organization (WHO) said

this from the beginning, but far too

manygovernments ignored their

sound advice. Governments must

dobetter next time.

Working with governments

Many governments recognized

aviation’s vital role as an economic

lynchpin, providing nancial relief to

numerous airlines. As governments

now rebuild their regulatory

agendas, it is critical that they

continue to focus on regulations

that create value. IATA will be

vigilant and remind governments

that the benets of regulation must

exceed the costs they create.

Slot regulation is a case in point.

The Worldwide Airport Slot

Guidelines are fundamental to

delivering reliable schedules

with insucient airport capacity.

When government-imposed

travel restrictions stopped

airlines operating, exibility on

slot rules preserved networks

and connectivity. Now, as

routes are being re-opened and

demand returns, we still require

exibility in slot rules, particularly

as airports race to hire back

sta tomeet surging demand.

There isabsolutely no reason to

treat thereturn to normal as an

opportunity to rewrite the slot

rulesthat performed admirably

before the lockdown.

Likewise, we see the temptation

to introduce new consumer

regulations, on everything

from airline service oerings

to accessible travel. We are

committed to making travel

accessible, but the focus of any new

rules needs to be on addressing

the operational issues in this area,

rather than imposing penalties.

Regulators must not tolerate

infrastructure providers seeking to

recover pandemic losses by using

their natural monopoly powers

to price-gouge their customers.

With some airports already in the

process of implementing double-

digit increases, governments

must understand that the light

touch regulations proposed by

many airports come with a heavy

price topay for consumers, the

economy,and airlines.

Sustainability

At our 77th AGM, our members

resolved to achieve net zero

carbon emissions by 2050. That

was quickly followed by similar

commitments across the industry.

The missing component is a

similarly ambitious long-term target

by governments, which should be

articulated at this year’s Assembly

of the International Civil Aviation

Organization (ICAO).

The Assembly will also be an

opportunity for governments to

shore-up their support for CORSIA

(Carbon Osetting and Reduction

Scheme for International Aviation)

with a sensible baseline agreement

that fairly recognizes the adjusted

baseline of 2019. Individual

governments must not undermine

CORSIA’s eectiveness with

competing, duplicative, or politically

divisive extra-territorial initiatives.

To achieve net zero by 2050,

airlines must rely on infrastructure,

supplier partners, and the oset

providers to do their part with

credible initiatives that deliver real

reductions. The game changer,

however, is sustainable aviation fuel

(SAF), which is expected to account

for about 65% of our carbon

Willie Walsh, Director General

IATA Annual Review 2022

mitigation eorts by 2050. Airlines

bought every drop of SAF that was

available in 2021 and made forward

purchase agreements worth

some $17 billion. As with the wind

and solar energy transitions, the

tipping point will be facilitated by

government incentives, not taxes.

Diversity

The last challenge to highlight is

improving gender diversity. We

have made progress, but aviation

continues to be male dominated. By

not having better gender balance,

we are short-changing our industry

on talent, and in the long term

this is not sustainable. There is no

way to successfully address labor

shortages if we do not take full

advantage of the female half of the

population. Change is happening

but we must make it happen faster

through the examples of the IATA

Diversity and Inclusion Awards

andthe commitments of the

25by2025 initiative.

IATA

In the 14 months since taking on

theresponsibilities of Director

General, I have gained a deep

“By the end of 2023,

most regions will be

at—or exceeding—

pre-pandemic



appreciation of the excellent

work being done by the IATA

team in serving the needs of

our members. Examples of their

eorts are present throughout

this document. This includes our

nancial settlement systems

that have remained reliable

even under extreme stress. I am

determined to make IATA even

more eective in the coming year

and I know my IATA colleagues

share this commitment.

Willie Walsh,

Director General

Robin Hayes Chair, Board of Governors

IATA Annual Review 2022

ROBIN HAYES, CHAIR, IATA BOARD OF GOVERNORS, CEO OF JETBLUE AIRWAYS

Accelerating the

energytransition

Though the pandemic is not

completely behind us, the

recovery is underway. Are you

optimistic? And what do we need

to learn from the two years of

COVID-19?

Yes, I’m incredibly optimistic.

After more than two years, we are

turningthe corner on COVID and

are on a path to sustained recovery,

with travel almost back to 2019

levels in several parts of the world.

Key to this rebound has been the

removal of many of the restrictive

COVID travel policies.

Throughout the pandemic, as an

industry we’ve had to face the

challenges of operating with a

patchwork of entry regulations

that have been dicult for airlines

and travelers alike. We’ve learned

the importance of working with

governments worldwide to

streamline entry requirements

to countries for customers

and airlines. Many of these

requirements are no longer in

place, but we need to remain

focused on ensuring unied

protocols and procedures so

thatwe can be better prepared

forthe next challenge that we

faceas an industry.

As people return to traveling,

how have customer

expectations changed, and

arethere demand shifts that

willrequire a response at the

industry level?

As an industry, we were already

focused on technology before the

pandemic. Technology proved an

incredible resource because it

provided the tools and services

to reduce our customers’ shared

touchpoints while keeping a focus

on safety and social distancing.

We’ve seen that customers

appreciate and adapt to technology

enhancements, and we are certain

that their expectations moving

forward will be on the increasingly

seamless experience that we can

provide through technology.

We’re also seeing that customers

appreciate the enhanced cleaning

measures that our industry

introduced during the pandemic.

Though the mask mandates have

dropped in many of the countries

around the world, we’re also going

to see a number of travelers

continue wearing masks.

We’ve seen the demand for leisure

travel come roaring back, with

some airlines and airports reporting

the highest passenger numbers

since the start of the pandemic.

Business travel is not recovering

as quickly, but we’re seeing trends

that show that it, too, is getting

back on track. Companies know

that virtual networking is limited,

and that business travel is vital to

attracting clients and supporting

collaboration and teamwork.

What would you say to

airports that are campaigning

for reduced economic regulation?

We need more than ever to work

together to support the recovery

of our industry, and a key way

to do this is to ensure that we’re

protecting our customers. Without

strong economic regulation,

airports and air navigation service

providers (ANSPs) can operate as

a monopoly in any given market.

As such, they could arbitrarily and

unfairly raise their prices to the

detriment of travelers and airlines.

“The volatility of energy

markets is highlighting

our need to transition

even more quickly to

sustainable aviation



Robin Hayes Chair, Board of Governors

IATA Annual Review 2022

Without competition, we also know

that there is no urgency to provide

quality or timely service.

I am sure each and every airport

campaigning for reduced economic

regulation has no plan to abuse a

position of power, but economic

regulation is the only protection

we can provide for travelers.

Regulations also play an important

part in moving our industry and

services forward by encouraging

airports and ANSPs to strive for

investments that improve cost

eciency and service levels. Our

industry is never without scrutiny,

and we need economic regulation

to protect our business and ensure

we’re all providing the highest level

of service possible to travelers.

The industry made a

commitment to achieve net-

zero emissions by 2050. Are we

making sucient progress?

Climate change remains the

greatest threat to our world and

the greatest challenge for our

industry. We need to continue to

tackle it and to ensure that our

partners, including governments,

play their part in solving long-

standing issues. No one airline or

airport or aircraft manufacturer

will be able to move the needle

forward alone. Iwas pleased that

we passed Fly Net Zeroat our

Annual General Meetinglast year.

We need everyone, especially our

business partners in the industry, to

continue investing and innovating

in technologies and products

that allow us to keep our forward

momentum, from aircraft that can

use 100% sustainable aviation fuels

(SAF) to improved aircraft engines

and airline-related machinery.

The volatility of energy markets is

highlighting our need to transition

quickly to SAF. Unfortunately, SAF

are not being produced at levels

that the industry needs, and pricing

remains high. SAF are essential to

our strategy for reaching net-zero.

We need to work together as an

industry, and we need appropriate

government policy that supports

the increased production of SAF,

sothey are more widely available

and at a better price.

One of our other issues is that

net-zero does come at a cost, and

we need to make sure we prioritize

sustainability while also protecting

our business. Ultimately, I believe

Fly Net Zero is going to help us

be successful by coordinating

the eorts of the entire industry

to meet our net-zero emissions

goalby 2050 and by helping us

stay on track with our short- and

medium-term targets.

As we look ahead to the next

ve years, what do you see

as aviation’s biggest challenges?

And what is IATA’s role in

addressing them?

Climate change and environmental

issues remain our greatest

challenges. Not only is reducing our

carbon emissions the right thing to

do but also we’re under tremendous

pressure from governments and

travelers to adopt measures

to reduce the environmental

Robin Hayes Chair, Board of Governors

IATA Annual Review 2022

impact oftravel. As the unifying

organization of our industry, IATA

must make sure it moves forward

in the Fly Net Zero program and

hits targets. And the industry

must share with governments and

communities the progress we’re

making in our eorts.

In the short term, it is imperative

that we manage and retain talent in

the industry. Because of the highly

specialized nature of our work and

the impact of the pandemic, we’re

experiencing workforce shortages.

We are therefore laser focused

on supporting the talent pipeline

to ensure that we’re fostering

opportunities and overcoming

challenges, educational or

nancial, to entering our industry.

IATA has been providing training

for aviationprofessionals for 50

years, and so it is going to play an

important part in contributing to

theindustry recovery. By working

with our partners, we can attract

new talent and help shape the

future of aviation.

As we look to the future, we

also need to focus on improving

diversity within our industry.

IATA’s 25by2025 program will be

a principal enabler in increasing

the number of women in senior

positions by either 25% or to

a minimum of 25% by 2025.

Diversity, equity, and inclusion are

fundamental for the future of our

industry. Companies that have

great diversity at the management

level perform the best. Research

shows that companies that rank

high in diversity are also more

likely to attract top talent, to

improve customer and employee

satisfaction, and to have better

decision-making and nancial

returns. By establishing a culture

of diversity, equity, and inclusion,

the aviation industry will secure its

talent pipeline for years to come.

Robin Hayes, Chair,

IATA Board of Governors,

CEO of JetBlue Airways

MEMBERSHIP OF THE BOARD OF GOVERNORS

As at 9 June 2022

1. Abdelhamid Addou

Chairman and Chief

Executive Ocer

ROYAL AIR MAROC

2. Akbar Al Baker

Group Chief Executive

QATAR AIRWAYS

3. Ibrahim Al-Omar

Director General

SAUDI ARABIAN AIRLINES

4. Roberto Alvo

Chief Executive Ocer

LATAM AIRLINES GROUP

5. Enrique Javier

Beltranena Mejicano

President and Chief

Executive Ocer

VOLARIS

6. Walter Cho

Chairman and Chief

Executive Ocer

KOREAN AIR

7. Donald Colleran

President and Chief

Executive Ocer

FEDEX EXPRESS

8. Ronojoy Dutta

Chief Executive Ocer

INDIGO AIRLINES

9. Pieter Elbers

President and Chief

Executive Ocer

KLM ROYAL DUTCH

AIRLINES

10. Mohamad El-Hout

Chairman and Director

General

MIDDLE EAST AIRLINES

11. Luis Gallego Martín

Chief Executive Ocer

IAG (representing Iberia)

12. Goh Choon Phong

Chief Executive Ocer

SINGAPORE AIRLINES

13. Robin Hayes

[Chair of the Board]

President and Chief

Executive Ocer

JETBLUE AIRWAYS

14. Pedro Heilbron

Chief Executive Ocer

COPA AIRLINES

15. Izham Ismail

Group Chief Executive

Ocer

MALAYSIA AIRLINES

16. Scott Kirby

Chief Executive Ocer

UNITED AIRLINES

17. Liu Shaoyong

Chairman

CHINA EASTERN

AIRLINES

18. Ma Xulun

Chairman, President, and

Chief Executive Ocer

CHINA SOUTHERN

AIRLINES

19. Christine

Ourmières-Widener

Chief Executive Ocer

TAP AIR PORTUGAL

20. Topi Manner

President and Chief

Executive Ocer

FINNAIR

21. Yvonne

Manzi Makolo

Chief Executive Ocer

RWANDAIR

22. Mehmet TevkNane

Vice-Chairperson of

the Board (Managing

Director)

PEGASUS AIRLINES

23. Douglas Parker

Chairman

AMERICAN AIRLINES

24. Michael Rousseau

President and Chief

Executive Ocer

AIR CANADA

25. MAjay Singh

Chairman and

ManagingDirector

SPICEJET LIMITED

26. Benjamin Smith

Chief Executive Ocer

AIR FRANCE / KLM

(representing Air France)

27. Carsten Spohr

Chairman and Chief

Executive Ocer

LUFTHANSA

28. Tang Kin Wing

Augustus

Chief Executive Ocer

CATHAY PACIFIC

AIRWAYS LIMITED

29. Willie Walsh

Director General

IATA

ALSO SERVED

(To March 2022)

Yuji Hirako

President and Chief

Executive Ocer

ALL NIPPON AIRWAYS

(To March 2022)

Tewolde GebreMariam

Chief Executive Ocer

ETHIOPIAN AIRLINES

(To March 2022)

Mikhail Poluboyarinov

Chief Executive Ocer

and Chairman of the

Management Board

AEROFLOT

(To October 2021)

Adrian Neuhauser

Chief Executive Ocer

AVIANCA

(To October 2021)

Alan Joyce

Chief Executive Ocer

QANTAS

Industry Story

IATA Annual Review 2022

INDUSTRY STORY

On the path

torecovery

02 Seasonally adjusted domestic RPKs

(indexed to January 2020 = 100)

01 Percentage change in RPKs

03 International RPKs, YoY% change

120

100

20%

-20%

-40%

-60%

-80%

-10 0%

20%

-20%

-40%

-60%

-80%

-10 0%

Jan-20

Mar-20

May-20

Jul-20

Sep-20

Nov-20

Jan-21

Mar-21

May-21

Jul-21

Sep-21

Nov-21

Jan-21

Mar-22

China

Japan

USA

Australia

India

Brazil

Jan-20

Mar-20

Apr-20

Feb-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

April-21

May-21

Jun-21

Jul-21

Aug-21

Sep-21

Oct-21

Nov-21

Dec-21

Jan-21

Feb-21

Mar-22

Apr-22

April 2022 vs April 2019

Domestic RPKs

-25.8%

Industry total

-37.2%

International RPKs

-43.4%

Africa

Europe

Middle East

Asia Pacic

Latin America

North America

Industry Story

IATA Annual Review 2022

Air passenger trac

International air travel continues its recovery

The recovery of international air trac following its

COVID-19 low point in 2020 accelerated in 2021. But

some domestic markets stagnated.

Following the initial hit from the pandemic and for

most of 2020 and early 2021, international air travel

was adversely aected by travel restrictions, such

that travelers preferred less-restricted domestic

trips. Those trends reversed around mid-2021.

When governments started to lift international travel

restrictions, strong demand for international travel

ensued, especially for leisure and short-haul trips.

Domestic revenue passenger kilometers (RPKs),

conversely, trended sideways, mainly because Asian

markets, such as China, that had initially recovered

fastwere hit by renewed outbreaks of the virus.

01 Source: IATA’s Monthly Trac Statistics

Domestic markets are strongly dependent

on COVID-19 policies and pandemic-related

developments

Air travel demand diverges strongly among the largest

domestic markets. In Russia, the shift from international

to domestic air travel and favorable government policies

regarding the latter meant domestic RPKs trended

above 2019 levels for all of 2021 and prior to the war

with Ukraine. China’s domestic RPKs have returned

close to their 2019 values on several occasions only to

deteriorate following outbreaks of the Delta and Omicron

variants. The United States has seen a slow but steady

recovery in domestic air travel demand. Elsewhere,

some domestic markets continue to see volatility in

air trac amid renewed outbreaks of COVID-19 and its

variants even as 2022 witnesses reduced pressure from

COVID on health systems globally.

02 Source: IATA’s Monthly Trac Statistics

The recovery in international air travel is

resilient to shocks, but Asia-Pacic is struggling

The worldwide easing of government border

policies was arguably the main reason for growth in

international air passenger trac in 2021 and into

2022. Africa, Latin America, and the Middle East saw

faster initial letups of travel restrictions than Europe

and North America, but all of these regions have

broadly recovered in step, albeit slowly. The outlier

is Asia-Pacic, where strict government policies and

cautious travelers led to only marginal improvement in

international air transport RPKs in 2021.

In early 2022, international travel maintained its

recovery in all regions. The pace of that recovery,

however, continued to diverge between Asia-Pacic

and the rest of the world, although some Asia-Pacic

markets, such as Australia, have begun recovering

faster than the region overall following their

governments’ relaxation of restrictions.

03 Source: IATA’s Monthly Trac Statistics

04 International RPKs by cabin class,

indexed to January 2020 = 100

05 Percentage change in bookings

in the United States and Europe

06 Jet fuel and crude oil prices

120

100

-10 %

-20%

-30%

-40%

-50%

-60%

-70 %

-80%

-90%

-10 0%

Jan-21

Jan-20

Feb-21

Mar-20

Mar-21

May-20

Apr-21

Jul-20

May-21

Sep-20

Jun-21

Nov-20

Jul-21

Jan-21

Aug-21

Mar-21

Sep-21

May-21

Oct-21

Jul-21

Nov-21

Sep-21

Dec-21

Nov-21

Jan-22

Jan-21

Feb-22

Mar-22

Share of int’l RPKs by class

(identical in 2019 and 2021)

Economy 92%

Premium 8%

Bookings made in the US

Bookings made in Europe

20 Sept: US travel ban to be lifted in Nov

15 Oct: Concrete US reopening date announced

24 Feb: Escalation of war in Ukraine

Purchase date

Jet fuel price

Crude oli price (Brent)

175

155

135

115

May-16

Sep-15

Jan-17

Sep-17

Sep-18

May-18

May-19

May-20

May-21

May-22

May-15

Jan-16

Sep-16

May-17

Jan-18

Jan-19

Jan-20

Jan-21

Jan-22

Sep-19

Sep-20

Sep-21

$/barrel

Industry Story

IATA Annual Review 2022

Economy- and premium-class travel have fallen

and risen at the same pace during the pandemic

There has been much speculation throughout the

pandemic of the possible signicant impact on

business travel of video conferencing technology

and tightened corporate travel budgets. Trac

volumes in premium and economy cabin classes have

nonetheless mostly recovered in tandem and their

respective market shares are unchanged from 2019.

This is potentially the result of declines in airfares for

rst and business class relative to other classes and to

increased demand from leisure travelers for comfort

and space onboard aircraft.

04 Source: IATA’s Monthly Trac Statistics

The willingness of people to travel

deesthepandemic and other shocks

The US-Europe market illustrates that people’s

willingness to travel by air has remained strong

throughout the pandemic. The easing of air travel

restrictions has often been followed by a surge in ticket

sales. Except for countries directly aected by the

war in Ukraine, demand has been mostly untouched,

with ticket sales falling for only a week or so before

recovering. Not even ination has so far put people

o air travel. It is likely, though, that demand would be

stronger without these various shocks.

05 Source: IATA Economics, using Direct Data Service (DDS)

Jet fuel and crude oil prices rose markedly

in 2021 and early 2022, pressuring already

strained airline nances

Economic activity globally recovered well in 2021

from the depths of the pandemic, pushing demand

and prices for oil steadily higher. Initially, the crack

spread—the gap between crude oil and jet fuel prices—

was negligible, but it has grown since mid-2021. The

war in Ukraine, robust global economic activity, and

insucient crude supply led to a surge in crude oil

prices in early 2022. Jet fuel prices rose even more

quickly, driven by heightened demand.

06 Sources: S&P Global, Renitive Eikon

07 Percentage growth in air cargo demand

08 International CTKs,

indexed to January 2020 = 100

Industry-wide CTKs

Global goods trade

Relative performance of air cargo growth

% year-

on-year

30%

25%

20%

15%

10%

-5%

-10 %

-15%

-20%

-25%

-30%

Jan-17

Jan-20

Jul-17

Apr-20

Jan-18

Jul-20

Jul-18

Oct-20

Jan-19

Jan-21

Jul-19

Apr-21

Jan-20

Jul-21

Jul-20

Jul-21

Jan-21

Oct-21

Jul-21

Jan-22

Jul-21

140

120

100

Africa

Asia Pacic

Europe

Latin America

Middle East

North America

Industry Story

IATA Annual Review 2022

Air cargo trac

Air cargo grew strongly in 2021,

outperformingthe wider goods trade,

butresults deteriorated in 2022

As is typical during economic upturns, global air cargo

transport grew faster than the overall goods trade in

2021. This is because demand for goods rebounded

strongly, and businesses often did not have enough

inventory to meet that demand, inducing them to turn to

air cargo for rapid restocking. This inventory restocking

cycle tapered o somewhat at the end of 2021 into

early 2022 as the rebound in economic activity slowed

and ination began to rise. Air cargo trac continues

to grow in year-on-year terms, but its growth clearly

softened in the second half of 2021 and may well

weaken further as 2022 progresses.

07 Sources: IATA’s Monthly Trac Statistics,

Netherlands Centraal Planbureau (CPB)

Air cargo volumes for many leading routes and

markets have softened, but volumes in Africa

and Latin America continue to surge

Globally, air cargo volumes are trending sideways,

hiding the disparity among the main markets and

regions. North America, the Middle East, Asia-Pacic,

and Europe posted strong growth in air cargo volumes

in late 2020 and early 2021, but volumes thereafter lost

steam. This is partly explained by elevated ination

and related supply issues, the end of the inventory

restocking cycle, and a shift in demand from goods to

services. Airlines in Latin America lost air cargo market

share to other regions but exited their bankruptcy

procedures, which allowed them to post strong

performances in early 2022 and to begin the expected

consolidation process in the region. The cargo tonne

kilometers (CTKs) own by African airlines have been

buoyant throughout the pandemic, mainly driven by a

vigorous ow of goods and investments from China.

08 Source: IATA’s Monthly Trac Statistics

09 Percentage growth in air cargo demand

11 Percentage growth in

manufacturingexport orders

10 Cargo yields and load factors,

indexedto January 2012 = 100

Millions

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

4.4

4.0

3.6

3.2

2.8

2.4

2.0

1.6

1.2

132

127

122

117

112

107

102

Dedicated freighters Preighters Passenger aircraft bellies

Aug-19

Apr-19

Dec-19

Apr-20

Oct-20

Aug-20

Feb-21

Aug-21

Feb-22

Feb-19

Jun-19

Oct-19

Feb-20

Jun-20

Dec-20

Jun-21

Dec-21

Apr-21

Oct-21

Arpr-22

51%

49%

25%

71%

21%

18%

61%

28%

13%

59%

40%

30%

20%

10%

-10 %

-20%

-30%

-40%

Growth in industry CTKs (RHS)

Global PMI component export orders

Manufacturing New export orders PMI (50 = no change)

($/kilogram)

Global air cargo yield, including fuel

andother surcharges (LHS)

Industry-wide cargo load factor (RHS)

Seasonally adjusted

Industry Story

IATA Annual Review 2022

Passenger aircraft belly capacity is recovering

but remains lower than pre-pandemic levels

Amid greatly diminished international passenger

trac, particularly as the pandemic took full eect,

passenger aircraft belly capacity declined substantially.

To compensate, airlines temporarily converted some

oftheir passenger aircraft to freighters, which are

dubbed “preighters.” The result was record air cargo

load factors and yields.

The air cargo load factor hit a peak in mid-2021

beforefalling as a result of lower demand and

increasedcapacity. Air cargo yields also fell in the

second half of 2021 until Omicron, labor shortages,

and other disruptions sent them to new heights at

theoutset of 2022.

09 Source: IATA’s Monthly Trac Statistics

10 Sources: IATA’s CargoIS and Monthly Trac Statistics

Export orders, key indicators of demand

for air cargo transport, were moderate

in 2021 and early 2022

The diculties faced by air cargo trac are visible

in the purchasing managers’ index (PMI) for export

orders—historically a leading indicator of air cargo

demand. Thisindicator revealed that export orders

were moderate for most of 2021 amid softening

growth.However, it turned unsupportive in January

2022, when its value dipped below 50, which signals

a deterioration on the month. Although the index

improved in February, ination, the war in Ukraine,

and renewed lockdowns in China again put downward

pressures on export orders and air cargo demand.

11 Sources: IATA’s Monthly Trac Statistics, IHS Markit

$ Billion

900

800

700

600

500

400

300

200

100

Passenger revenues

Cargo revenues

2015

2016

2017

2018

2019

2020

2021

12 Global airline revenues

13 Breakeven and actual passenger

andcargo load factors

2021:

57% of

2019

level

2022:

79% of

2019

level

% ATKs

$ Billion

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2016

2017

2018

2019

2020

2021

14 Air transport industry net posttax prots

-20

-40

-60

-80

-10 0

-120

-14 0

-4.1

5.0

14.7

-26.1

-4.6

17.3

8.3

9.2

10.7

13.8

36.0

34.2

37.6

27.3

26.4

-137.7

-51.8

Industry Story

IATA Annual Review 2022

Airline nancials

Cargo and passenger revenues rose in 2021

butremain far from their precrisis levels

Air cargo revenues have nevertheless been the bright

story for airlines during the pandemic. They rose nearly

75% in 2021 compared with 2019 on the back of strong

demand and record cargo yields. That, however, was far

from enough to oset the fall in passenger revenues,

which in 2021 were still more than 60% under their 2019

level. This left overall airlines revenues in 2021 fully 57%

below revenues for 2019.

12 Source: IATA Economics

Airlines’ combined load factor remains below

the level required for nancial breakeven

Improvements in air passenger trac and strong air

cargo demand meant airlines were able to increase

their overall load factor in 2021 compared with 2020.

Despite this improvement, the load factor continues

to be below where it must be for airlines to break

evennancially.

13 Source: IATA Economics

Air transport again registered net posttax

losses in 2021 with improvement on the horizon

Based on IATA’s October 2021 estimates, industry-

wide net posttax losses eased from $138 billion in 2020

to $52 billion in 2021 on the back of improvements in

passenger trac and a strong air cargo performance.

IATA expects a further reduction in losses in 2022 as

the recovery extends. It is clear, however, that higher jet

fuel and labor costs, the impact of ination on demand,

outbreaks of COVID-19 in China, and a broad-based

slowdown in economic activity will put downward

pressure on airline nancials. Some airlines, though,

are expected to turn a prot in 2022, particularly those

with large domestic markets and open borders.

14 Source: IATA Economics

2015

2016

2017

2018

2019

2020

2021

80%

75%

70%

65%

60%

55%

Breakeven load factor (passenger + cargo)

Overall load factor (passenger + cargo)

10%

15%

20%

30%

25%

40%

35%

15 Airline operating margin by region

2020

2021 E

% revenue

North America

European

Asia-Pacic

Middle East

Latin American

Africa

Industry

Industry Story

IATA Annual Review 2022

Airline nances improved in all regions in 2021

and are expected to improve further in 2022,

with North America leading the way

IATA’s October 2021 estimates anticipated reduced,

widespread operational losses in 2021. Those

estimates anticipate the same for 2022 across all the

main regions of airline registration, although the degree

of improvement will vary signicantly region by region.

Airlines based in North America are the best placed

nancially, beneting as they do from the large US

market, strong trac ows to Latin America and

Europe, and resilient economies. This is the only region

where the operating margin is expected to turn positive

in 2022.

Slow gains in international air trac meant that the

nances of European airlines improved marginally in

2021. Their earnings before interest and taxes (EBIT)

margin was at minus 17.4% at year-end 2021.

Drivers of nancial performance for airlines in

Asia-Pacic are mixed. The international air travel

recovery was almost nonexistent in this region in

2021, and even the region’s largest domestic markets

continue to be troubled by renewed COVID-19

outbreaks and risk-averse governments.

Air carriers in the Middle East experienced slow growth

in their operating margins in 2021. This was due mainly

to the region’s dependency on long-haul international

air travel, which is expected to take longer than other

market segments to return to its 2019 trac levels.

Latin American carriers posted the worst operating

margin on aggregate in 2020 and 2021, with several

airlines proceeding with US Chapter 11 bankruptcy.

There is nevertheless robust demand for leisure travel

in some markets to and from the region, which has

helped to improve regional airline nances somewhat.

In Africa, airline operating margins were around minus

13% in 2021, a resilient outcome. Looking ahead,

low-income countries in Africa are likely to struggle

economically in the near term, which will dampen the

recovery of air transport in those countries.

15 Source: IATA Economics

Safety

IATA Annual Review 2022

n the face of numerous

operational challenges, the airline

industry improved its safety

performance in several key areas

in 2021 compared with 2020 and

the 2017–2021 average.

Highlights of 2021 safety

performance:

● The total number of accidents,

the all-accident rate, and fatalities

were reduced

● IATA members and airlines on the

IATA Operational Safety Audit

(IOSA) registry (which includes

allIATA members) experienced

zero fatal accidents

● No runway/taxiway excursion

accidents occurred for the first

time in at least 15 years.

These strong results occurred as

the industry ramped-up operations

from the low point of April 2020,

while addressing issues that

included:

● Ensuring proficiency for air crew

flying reduced schedules or

returning to work after furlough

● The loss of many highly skilled

individuals owing to retirement

orredundancy

● Safely returning aircraft to

service after parking them for

extended periods

● Inconsistent and rapidly changing

border control measures that

placed significant stress on

aircrew in navigating testing and

quarantine requirements.

To ensure that IATA can support the

industry in delivering continuous

improvement in aviation safety,

a new three-pillar IATA Safety

Strategy has been developed:

● Safety Leadership:

Organizational safety begins

at the top. The IATA Safety

Leadership Program aims to

leverage the safety leadership

mindset of aviation executives to

highlight the benefits of a positive

safety culture to enhance safety

performance. Safety Leadership

principles, a Safety Leadership

Charter, and Safety Leadership

talks are all being utilized to

emphasize the criticality of

leadership. IATA’s Aviation Safety

Culture (I-ASC) Survey provides

airlines with a tool to measure

and continuously improve

their safety cultures using a

standardized methodology and

key performance indicators.

SAFETY

New three-pillar

safety strategy

Safety

IATA Annual Review 2022

Aviation and 5G

Though 5G telecommunications

services have been successfully

implemented in many jurisdictions

around the world with little to no

impact on airline operations, this

was not the case in the United



C-band 5G operations in January

2022 at certain US airports created

enormous disruption to aviation,

owing to the potential risk of

interference with radio altimeters

that are critical to aircraft landing



safety was not compromised,



on airlines as they worked to

comply with the special conditions

established by the US Federal

Aviation Administration (FAA) for

safe operations in the presence



Furthermore, it is anticipated that

the FAA will require airlines to



at their own expense to enable the

respective aircraft to continue to

serve 114 US airports where 5G



Protection of the civil aviation

spectrum and aircraft safety



IATA continues engaging with

governments to mitigate threats

to the civil aviation spectrum,

including encouraging responsible



Safety

IATA Annual Review 2022

All accident

rate (accidents

per one million

ights)

2021

1.01

(1 accident every

0.99million ights)

2020

1.58

(1 accident every

0.63 million ights)



1.23

(1 accident every

0.81 million ights)

All accident

rateforIATA

memberairlines

2021

0.44

(1 accident every

2.27million ights)

2020

0.77

(1 accident every

1.30 million ights)



0.72

(1 accident every

1.39 million ights)

Total

accidents

2021

2020



44.2

Fatal

accidents

2021

(1 jet and 6turboprop)

2020



7.4

Fatalities

2021

121

2020

132



207

Fatality

risk

2021

0.23

2020

0.13



0.14

● Safety Risk: This pillar captures

new and emerging aviation

hazards that put safety at risk

and offers potential industry

mitigations through a single

repository—the IATA Global

Safety Risk Management

Framework (GSRMF). It enables

the assessment and prioritization

of hazards and risks, captured

from across industry, to support

safety improvements through

safety risk assessments and

guidance material. As IATA

transforms its IOSA program

froma compliance-based

process to a risk-based one,

safety insights from audits will

add significant context to the

issues IATA looks to address

through safety improvement

programs. The IATA Global

Aviation Data Management

(GADM) platform, which contains

large amounts of safety data, will

support this by validating data

around identified safety risks.

IOSA will provide de-identified

safety insights from audits that

will feed into the GSRMF.

● Safety Connect: The IATA

Safety Connect program has

been designed to encourage

active communication among

airlines’ safety and compliance

managers regarding current

and emerging potential safety

issues. It provides a conduit to

exchangesafety intelligence

between peers to support a

deeper industry understanding

of current issues and employ

mitigations used by others to

collectively raise the baron

safety performance.

“To ensure that IATA can support the

industry in delivering continuous

improvement in aviation safety,

a new three-pillar IATA Safety



Safety

IATA Annual Review 2022

IATA member

airlines

fatalityrisk

2021

0.00

2020

0.06



0.04

Jet hull losses

(perone million

ights)

2021

0.13

(1 major accident

every7.7 million ights)

2020

0.16

(1 major accident

every6.3 million ights)



0.15

(1 major accident every

6.7 million ights

Turboprop hull

losses(per one

million ights)

2021

1.77

(1 hull loss every

0.56million ights)

2020

1.59

(1 hull loss every

0.63million ights)



1.22

(1 hull loss every

0.82million ights)

Total ights

(million)

2021

25.7

2020

22.2



36.6

Security

IATA Annual Review 2022

viation’s security

challenges include

cyberattacks on

corporatesystems,

geopolitical tensions resulting

in airspace closures, and

terrorism against assets, people,

and reputation. To keep pace,

governments are providing

supportand resources to

aviation, including capacity

building, so that countries with

limited resources can meet and

exceed their securityobligations.

These eortskeep ying secure

despitethe numerous threats.

Issues surrounding the safe and

secure management of civil aviation

in conict zones, and in the airport

environment persist, and in some

regions have escalated. In the

Kingdom of Saudi Arabia in 2021,

for example, 54 individual attacks

or attempted attacks were ocially

reported against airports under civil

control. Similarly, there were fatal

attacks reported in January 2022 in

the United Arab Emirates involving

the unlawful use of Unmanned

Aircraft Systems (UAS).

To counter these challenges,

information sharing is critical. IATA

facilitates the timely sharing of

information among key industry

participants through its Tactical

Operations Portal (ITOP).

The invasion of Ukraine by Russia

underscores the importance

of timely collaborative risk

assessment between governments

and the industry. As of end April

2022, all Ukrainian and large parts

SECURITY

Aviation maintains

its vigilance against

security threats

“IATA facilitates the

timely sharing of

information among key

industry participants

through its Tactical



of Russian airspace were closed to

civil aviation operations. Airspace

closures, regardless of the

reason, come with huge penalties

for aviation. Longer ight times

increased operating costs, fuel

consumption, and CO2 emissions,

for example. Any airspace closure

for whatever reason needs to

be monitored and reviewed on a

regular basis.

Meanwhile, the digital jamming

of civil aircraft global position

systemsand spoong even outside

conict zones—known as fake

information tactics—persists. To

assist the industry in mitigating this

risk, IATA manages a multitude of

outreach communications.

Governments have ocially warned

industry partners that cyberattacks

have increased across all enterprise

systems associated with critical

infrastructure services, including

transport. There have been no

incidents reported that have

targeted or aected the safety of

ight and/or met the threshold of an

act of unlawful interference. There

are indications, however, that state-

sponsored actors have increased

capabilities to disrupt civil aviation,

with data breaches causing supply

chain disruptions. International and

national cybersecurity eorts focus

on reducing the risks of unregulated

supply chains, and unknown network

and software vulnerabilities,

including ransomware.

Security

IATA Annual Review 2022

Regulations

IATA Annual Review 2022

Regulations

IATA Annual Review 2022

overnments need to weigh

the impact that additional

aviation taxes will have on

the contribution of aviation

connectivity to economic growth

versus higher tax revenue from the

economy as a whole. In principle,

aviation taxation should be

proportionate and fair and should

avoid competitive distortion

Green and carbon taxes

There has been a urry of green

and carbon (CO

) tax initiatives

across Europe, including proposed

increases to ticket taxes. In

early 2022, Belgium instigated a

passenger tax, and the Netherlands

tripled its tax. Carbon pricing

proposals in the form of taxes that

will potentially penalize aviation for

emissions beyond the scope of

the EU Emissions Trading Scheme

have likewise been proposed.

The air transport industry is

advocating for the EU and other

nations to promote and incentivize

investments in SAF rather than

implement taxes to generate

revenue that is rarely invested in

projects to cut aviation emissions.

EU energy taxation directive

The industry is also monitoring

developments under the EU Energy

Taxation Directive concerning

the proposed fuel tax on intra-

EU ights—from which airlines

are exempt—and how this would

put EU airlines at a competitive

disadvantage. The EU, meanwhile,

must respect air services

agreements (ASAs) that exempt

airlines from non-EU countries

operating ights between EU

member countries from fuel tax.

Where the EU doesn’t have ASAs

with non-EU countries, the EU has

left the door open to apply a fuel

tax on the ights of non-EU airlines

operating from EU airports.

Base erosion and prot sharing

In November 2021, 137 countries

joined a two-pillar plan to reform

international taxation rules to

reduce base erosion and prot

sharing (BEPS) where multinational

enterprises exploit gaps and

mismatches between dierent

country’s tax systems. The global

airline industry is in the scope of the

new rules, but the annual turnover

threshold of the rules is so high that

it may apply to only ve major airline

groups. The threshold, though, could

drop 50% by 2030, which would put

more airlines in the scope of the

rules, especially as airlines recover

following the 2023 implementation

of the reformed rules.

Unruly passengers

There is growing concern

among airlines, passengers, and

governments over the increasing

frequency and severity of unruly

incidents involving violence

and harassment by passengers

againstcrews and other

passengers and failure to comply

with safety and public health

instructions. Yet, loopholes in

international air laws often result

in oenses going unpunished.

The air transport industry has

consequently adopted a set of

principles to deal with unruly

passenger behavior. In April 2022,

IATA bolstered those principles

with its publication of a high-level

document, Even safer and more

enjoyable air travel for all—a

strategy for reducing the problem

of unruly and disruptive passenger



Regulations need

to be consistent

Regulations

IATA Annual Review 2022

incidents, that uses examples

of good practice to illustrate the

practical steps to take to reduce

unruly and disruptive passenger

issues. These steps include

urginggovernments

● to communicate the types of

prohibited conduct onboard

aircraft and the legal and other

consequences of such conduct,

in line with Annex 9 of the

ChicagoConvention;

● to ratify Montreal Protocol 14

and thereby remove barriers to

enforcement and prosecution;

● to review the types of

enforcement measures that

are in place, including such

penalties as fines, which can be

issued to ensure that there are

consequences for disruptive

behavior; and

● to support the work of airlines

and other industry stakeholders

to prevent unruly and disruptive

passenger incidents.

Accessibility

IATA again consulted extensively

with disabled persons, industry

representatives, and wheelchair

and aircraft manufacturers to

develop policies and propose

solutions to make air transport

increasingly accessible for

travelers with disabilities. An

important concern for this traveler

group is damage to mobility aids.

In March 2022, IATA’s Mobility Aids

Action Group provided a number of

conclusions and recommendations:

● The dimensions and weight of

some mobility aids cause loading

and off-loading challenges.

Mobility aids must be stored in an

upright position and often cannot

be configured to fit through cargo

doors or secured in the cargo hold.

● Communication with passengers

must improve to ensure

that accurate dimensions

of mobility aids are shared

with carriers. Without this

information, carriersmay not

be able to correctly assemble

or disassemble a mobility aid.

Incorrect information can also

lead to injuries to handlers.

● Communication is also vital for

the safe handling of lithium-ion

batteries, which are used to

power some mobility aids and

must be properly disassembled

or disconnected to be compliant

with air transport’s dangerous

goods regulations.

The airline industry is doing what it

can to minimize damage to mobility

aids. But a major breakthrough for

the benet of travelers will only

come when wheelchair and other

mobility aid manufacturers change

their product designs to meet

the demands of air travel. In the

meantime, the Mobility Aids Action

Group seeks agreement on various

initiatives, including advocacy, with

national regulators for a market-

driven solution for mobility aids

suited to air travel.

Slots

Government restrictions on travel

once more challenged the slot

allocation system in 2021. And IATA

and airlines again urged regulators

not to return fully to the 80-20 slot-

use rule for the northern summer

2022 season, particularly while

it remained unclear when travel

restrictions would be lifted.

The Worldwide Airport Slot Board

(WASB) proposed measures that

recognize the global nature of

airline networks and their exposure

to changing circumstances in

dierent markets, such as how

the closure of one end of a route

dramatically aects the other end.

WASB’s measures recommend

some slot series returns for still-

closed routes and force majeure

for unknowns. Disappointingly,

the UK government announced

a 70% use rate for summer 2022

with no options, while the European

Commission agreed to a 64% rate.

Most other regulators remained

committed to the WASB approach

or to continued full slot alleviation.

In March, Singapore University of

Technology and Design’s Aviation

Studies Institute published a white

paper cowritten with IATA: Slot

Allocation Amidst COVID Recovery,

which focuses on the Association of

“Government

restrictions on travel

once more challenged

the slot allocation



Regulations

IATA Annual Review 2022



Working with

governments

fora safe

restart of

aviation

hroughout 2021, the

industry worked with

governments to secure a

safe, globally coordinated

restart of air transport. At the

ICAO High Level Conference on

COVID-19 (HLCC) in October 2021,

countries acknowledged that

greater harmonization between

countries was important to restore

international connectivity, rebuild

the condence of the traveling

public, and facilitate the revival of

the global economy.

At that time, most countries had

reopened their borders, at least

partially, or had announced plans

to do so. Almost all countries,

however, still had in place extensive

requirements with which air

travelers and airlines had to comply,

with little to no coordination or

consistency among countries

regarding those requirements.

Recognizing that industry input

was needed to help countries

deliver on the commitments they’d

made at the HLCC, IATA published

Restart to Recovery: A Blueprint

for Simplifying Air Travel during

COVID-19. The publication is

designed to assist governments

with practical recommendations

and best practices to make the

international air travel experience

simple, predictable, and consistent.

Southeast Asian Nations (ASEAN).

The paper concludes that the

most useful measure adopted by

authorities worldwide has been

“the ability to return series of slots

in advance of the season, while

protecting future rights to the same

slots. This has provided clarity

to airport planners, prevented

airlines from being expected to

y unnecessarily, and provided

other airlines with more access

opportunities.”

The same thinking features in the

WASB guidance for future seasons.

WASB oers a balance between

pandemic impact and demand

recovery based on best practices.

Slot relief is crucial in heavily

travel-restricted markets. In

other markets, the slot system

is under pressure from soaring

demand, which outstrips airlines’

eorts to restart fast. Signicant

operational challenges at

airports, often because of a

lack of security-cleared sta,

are causing bottlenecks and

ight cancellations. In May 2022,

Schiphol Airport requested that

airlines halt bookings to relieve

pressure on the airport. It is vital

that such requests are signaled

well in advance so that slots can

be recongured and consumers

minimally inconvenienced. It is

also essential that airlines that

cannot operate their slots because

of cancellations beyond their

control are not penalized under the

minimum slot-use rules in place.

A further complication to the slot

system has recently emerged with

the closure of Russian airspace

following that country’s invasion

of Ukraine. Severe and ongoing

disruption to schedules means

that maximum exibility at slot-

coordinated airports is needed

to enable carriers to retime

slots. IATA is working with the

Worldwide Airport Coordinators

Group (WWACG) to ensure that

exibility and information on

schedule updates can be shared

between aviation stakeholders and

passengers as quickly as possible.

Regulations

IATA Annual Review 2022

Responding poorly to Omicron

The emergence of the Omicron

variant in late November 2021

led to knee-jerk responses from

many governments, including

renewed border closures and

additional testing and quarantine

requirements. These responses

were imposed with little warning

or coordination despite clear

statements from the World Health

Organization (WHO) that such

draconian measures are ineective

and probably counterproductive.

IATA called for governments to “use

the experience of the last two years

to move to a coordinated, data-

driven approach that nds safe

alternatives to border closures and

quarantine.” It added that “travel

restrictions are not a long-term

solution to control COVID variants.”

It quickly became apparent that

strict border measures were indeed

ineective against Omicron given

the extreme transmissibility of the

variant. Professor David Heymann,

of the London School of Hygiene

and Tropical Medicine, noted that

“the travel bans that followed the

discovery of Omicron did not contain

its spread. That is because by the

time it was identied, it was already

present in many places.” Research

carried out for IATA and ACI

Europe by Oxera and Edge Health

also foundpredeparture testing

requirements to be ineective

at stopping or even slowing the

spreadof the Omicron variant.

Professor Heymann further

argued that travel measures

were increasingly unnecessary in

countries with high levels of vaccine

uptake because vaccination

oers good protection against

severe outcomes. In this respect,

many countries have rightly

begun to treat COVID-19 as an

endemic disease and are shifting

the responsibility for COVID risk

assessment and risk management

to individuals.

Rebounding from Omicron and

aiming for a return to normal

Omicron and vaccines have driven

a shift in government policies from

strict person-based measures to the

alleviation of controls once sufcient

levels of population protection have

been reached. As more countries

apply this approach, IATA is calling

on governments to align their border

measures to achieve a return to a

pre-pandemic travel experience.

Border measures should take into

account the Oxera and Edge Health

research indicating that testing

does not signicantly inuence

the spread of the virus and its

“As the industry

recovery gathers

momentum, it is

important to take stock



variants. And contact tracing,

including the lengthy and complex

passenger locator forms (PLFs)

that have become ubiquitous, calls

for a joint, holistic approach. The

border should not be seen as the

only line of defense. If there is no

contact tracing taking place within

a domestic destination, it makes

no sense for travelers to that

destination to ll out a PLF. The same

logic applies to vaccine certicates

and other health credentials.

Restoring the passenger

experience that airlines are used to

oering requires more than just the

relaxation of border measures. The

onboard experience must go back

to normal too. In particular, mask

mandates should be relaxed in line

with domestic settings. Masking

onboard should be voluntary and

a matter of choice for passengers

and crew. There is no logic in

requiring masks onboard aircraft

when they are not required in

restaurants, at cultural and sporting

venues, or even within airports.

Looking ahead with resilience

and preparedness

As the industry recovery gathers

momentum, it is important to

take stock of the lessons learned

and to ensure that the industry is

resilient to future variants of the

SARS-COV2 virus. Government and

international organizations, too,

need to be much better prepared

for health emergencies, with global

pandemics expected to become

increasingly common.

Digital tools have the potential

not only to transform identity

management and facilitate

contactless travel but also

to heighten the resilience of

international travel amid health

emergencies. Throughout 2022 and

beyond, IATA will collaborate with

ICAO, WHO, and other stakeholders

to ensure that all are fully prepared

for the next global health event

and for a quicker, more consistent

response than has been the case

during the COVID pandemic. This

will be a key theme of IATA’s input

at the ICAO Assembly from 27

September to 7 October 2022.

Regulations

IATA Annual Review 2022

Environment and Sustainability

IATA Annual Review 2022

30 C

limate change is an

existential threat, and

environmental action

remains top of the

industry’s agenda. At the 77th IATA

Annual General Meeting in Boston,

United States, IATA member airlines

passed a resolution committing

them to achieving net zero carbon

emissions from their operations

by2050. This brings air transport

inline with the objective of the

ParisAgreement to limit global

warming to1.5°C.

Success will require the coordinated

eorts of the entire industry

(airlines, airports, air navigation

service providers, manufacturers)

and signicant government support.

The industry must progressively

reduce its emissions and

accommodate growing demand,

which is particularly strong in the

developing world.

To serve the needs of the 10 billion

people expected to y in 2050, at

least 1.8 gigatons of carbon must

be abated in that year. Moreover,

the net zero commitment implies

that a cumulative total of 21.2

gigatons of carbon will be abated

between now and 2050.

The resolution demands that all

industry stakeholders commit

to addressing the environmental

impact of their policies, products,

and activities with concrete actions

and clear timelines, including:

● Fuel-producing companies

bringing large scale, cost-

competitive sustainable aviation

fuels (SAF) to the market

● Governments and air navigation

service providers (ANSPs)

eliminating inefficiencies in

airtraffic management and

airspace infrastructure

● Aircraft and engine

manufacturers producing

radically more efficient airframe

and propulsion technologies

● Airport operators providing the

needed infrastructure to supply

sustainable aviation fuels (SAF)

ina cost-effective manner.

An immediate enabler is the

International Civil Aviation

Organization’s (ICAO) Carbon

Osetting and Reduction Scheme

for International Aviation (CORSIA).

This will stabilize international

emissions in the short-to-medium

term. Support for this was rearmed

in IATA’s net zero resolution. Under

CORSIA, airlines are required to

purchase eligible emission units to

oset increases in CO2 emissions

above a baseline, which is dened

as the average of emissions in 2019

and 2020. In 2020, the ICAO Council

ENVIRONMENT AND SUSTAINABILITY

The industry

strengthened

itssustainability

commitment

withFly Net Zero

Environment and Sustainability

IATA Annual Review 2022

Environment and Sustainability

IATA Annual Review 2022

decided that 2019 emissions

from international aviation will

be CORSIA’s baseline for its pilot

phase (2021–2023). However, the

baseline for 2024–2035 remains to

be decided and is under discussion

by ICAO member states. It should be

agreed on at ICAO’s 41st Assembly,

taking place from 27 September to

14 October 2022.

Progress to date

To reach the climate goal, the

aviation industry has unveiled a raft

of initiatives, from major purchases

of SAF and investments to grow

SAF supply, to prototype electric

and hydrogen aircraft. Bringing

sucient SAF to market and making

radical new technology a reality will

require a massive eort from all

stakeholders in the sector.

● In 2021, 100 million liters of

SAFwere produced and used

byairlines. Some 38 countries

have passed SAF-specific

policies so far.

● In 2022, more than 450,000

flights will operate using SAF

andairlines will agree some

$17billion in forward purchases.

● New SAF production capacity is

coming online across the world.

● Airlines and manufacturers

are joining forces to develop

hydrogen-powered aircraft or

technical solutions to make

alternative means of propulsion

commercially viable.

To help passengers and the

industry accurately understand

their emissions, in March 2022

IATA released the rst Industry-

developed Passenger CO2

Calculation Methodology. It uses

veried airline operational data

to provide the most accurate

emissions calculation for a

specicight. This is particularly

true in the corporate sector where

such calculations are needed to

underpin voluntary emissions

reductions targets.

The IATA Environmental

Assessment (IEnvA) program is

an evaluation system designed

toindependently assess and

improve the environmental

management of an airline.

It requires airlines and their

supply chain aliates to keep

track of, mitigate, and manage

environmental and sustainability

risks. This assessment is aligned

with internationally accepted

management standards (IOSA

and ISO14001:2015) to eectively

address the most signicant

sustainability challenges that the

aviation industry faces today. It

will help to build a sustainable

company and requires CEO-

level participation. Progress is

regularly evaluated by independent

assessors. To date, a total of 32

airlines have been certied or are

undergoing the assessment.

Contribution to

achieving Net Zero

Carbon in 2050

65% Sustainable aviation fuel

13% New technologies

3% Infrastructure / operations

19% Osetting / carbon capture

Achieving net zero by 2050 will

require eliminating emissions





The strategy is to abate as

much CO2 as possible using

in-sector solutions, such as

sustainable aviation fuels,

new aircraft technology,



and infrastructure, and the

development of zero-emissions

energy sources, including



Any emissions that cannot be

eliminated at source will be

eliminated through out-of-

sector options, such as carbon

capture and storage and



“Achieving net zero by 2050 will

require eliminating emissions at





Environment and Sustainability

IATA Annual Review 2022

Developments in 2022

ICAO Assembly

At its 41

Assembly, ICAO member

states are considering adopting a

long-term aspirational goal (LTAG)

to reduce carbon emissions from

international aviation. IATA and

the industry will encourage ICAO

to focus on a global framework

for reaching the LTAG and any

interim targets. Adopting the

LTAG is important to ensure

government support for aviation’s

decarbonization and alignment

with the Paris Agreement goals. It

would provide policy certainty to

enable long-term investments in

new technology and new forms of

energy, notably the much-needed

investment in SAF production.

Failure to adopt the LTAG would

result in a patchwork of national,

regional, or local measures and a

weakening of CORSIA.

Fit for 55

With its aim to cut emissions

acrossthe European Union 55% by

2030, the European Commission’s

‘Fit for 55’ environmental legislation

proposals are an opportunity

to deliver a signicant boost for

sustainable aviation, unleashing

investment in green technologies

and operational eciencies.

But airlines have concerns

about the proposals which, if

adopted will likely represent a

missed opportunity. Instead of

incentivizing green technologies

and operational eciency

improvements, thus making

ying sustainable for all, the

package aims to reduce air

travel by raising economic

barriers and making it less

aordable. Advocacy eorts

arefocusing on persuading

Europe to modify ‘Fit for 55’ to

provide practical measures to

boost the production of SAF

and support the implementation

ofCORSIA.

Passenger Experience

IATA Annual Review 2022

Passenger Experience

IATA Annual Review 2022

overnment-imposed

COVID-19 travel

restrictions forced

airlines to revert to the

manual verication of travel and

health documents, especially

for international travel. This led

to the suspension of many of

the automated and contactless

processes travelers enjoyed

prior to the pandemic. As trac

started to pick-up, many airlines

introduced back-oce processes

that permitted passengers to

submit their documents in advance

of their trips. This has allowed for

the resumption of some automated

processes with the aim of reducing

the number of customer touch

points in the travel process.

The past two years have

demonstrated the need to

implement automated solutions

to avoid airport disruptions and

congestion. IATA is collaborating

with industry stakeholders to

accelerate work on its One ID

initiative to provide travelers with the

expedited experience they demand.

One ID is helping transition the air

transport industry to a day when

travelers can move from curb to

gate using a single biometric travel

token, such as a face, ngerprint,

or iris scan, from which their

information is provided direct

to governments without airline

intermediation. Airlines are rm

supporters of One ID.

The emphasis now is on ensuring

that regulation is in place to support

the vision of paperless travel. One

ID will make traveling processes

more ecient and pleasant for

passengers and will utilize valuable

government resources more

eectively. It will take self-service

to the next level for travelers,

improve airport eciency,

and generate cost-savings for

stakeholders—all of which are

essential as the industry recovers

from the COVID-19 pandemic. 

PASSENGER EXPERIENCE

From curb to gate with

asingle biometric token

“The emphasis now

is on ensuring that

regulation is in place

to support the vision



Cargo

IATA Annual Review 2022

CARGO

Air cargo revenues

vital to airlines

ir cargo is the backbone

of global supply chains.

The eciencies and

advantages of transporting

goods by air were highlighted

during the COVID-19 pandemic,

with the delivery of life-saving

personal protective equipment,

medical supplies, and vaccines. The

passenger side of the air transport

business, conversely, dimmed as

countries closed their borders and

added to their travel restrictions.

In 2021, air cargo generated $155.0

billion, up from $129.0 billion in 2020

and $101.0 billion in 2019. Air cargo

therefore contributed more than

a third of airline revenues in 2021,

over double its contribution in 2020.

Global demand for air cargo was

up 6.9% compared with the pre-

covid level in 2019 and up 18.7%

compared with the level in 2020. Air

cargo capacity in 2021, however—

measured in available cargo tonne

kilometers (ACTKs)—was 10.9%

below the ACTKs in 2019 (-12.8%

for international operations). The

lack of capacity contributed to

increased yields and revenues that,

in turn, enabled airlines to continue

to oer passenger connectivity on

many routes during the pandemic.

Eliminating supply chain

congestion

Global supply chain congestion

is contributing to an inationary

environment and causing

challenges for air cargo. Air cargo

crews face hardships navigating

COVID-19 restrictions, and

operations are being adversely

aected by shortages of human

resources and facilities.

IATA continues to work with

governments on removing

operational barriers to ensure

that vital air cargo supply lines

remain open, ecient, and

eective. Specically, IATA urges

governments to exempt air

cargo crews from the COVID-19

restrictions imposed on regular

travelers and to coordinate and

standardize their pandemic

measures so that air cargo can

move around the world with

minimaldisruption.

Cargo

IATA Annual Review 2022

“In 2021,

air cargo

generated

$155.0 billion,

up from

$129.0 billion

in2020 and

$101.0 billion

in2019.”

Cargo

IATA Annual Review 2022

Contributing to making

aviation sustainable

Airlines have committed to net-

zero carbon emissions by 2050

in line with the Paris Agreement.

The strategy is to abate as much

CO2 as possible from such in-

sector solutions as SAF, aircraft

technologies, operations, and

infrastructure. This includes the

development of zero-emissions

energy sources, such as electricity

and hydrogen power. Emissions

that cannot be eliminated at source

will be eliminated through out-of-

sector options, including carbon

capture and storage and credible

osetting schemes.

Air cargo has an important role

to play in air transport’s bid for

sustainability, from stabilizing

to reducing net emissions. We

are already seeing some great

examples in air cargo’s re-

eeting, SAF commitments, and

electrication of ramp vehicles.

More opportunities are available for

air cargo to improve its operational

eciency through modernization

and digitalization, yet another

priority for the air transport

industry as a whole.

Air cargo’s eorts regarding

sustainability are supported by

its customers. Most air cargo

customers are themselves

committed to reducing the carbon

footprint of their supply chains.

Modernizing and elevating

theeciency of air cargo

The pandemic accelerated the

growth of e-commerce. This has

put pressure on airlines to digitalize

and to digitally collect data for

real-time tracking. In addition to

tracking the location of a shipment,

monitoring a shipment’s condition

regarding its temperature and the

like has become a requirement for

many shippers. Progress in this

andother respects is being made.

The e-air waybill is expected to

cover 100% of shipments on all

enabled trade lanes by the end

of 2022. That will yield a fully

digitalized supply chain that

employs a single standardized

Cargo

IATA Annual Review 2022

and entirely exchangeable data

set. This is the vision behind One

Record, which is undergoing 17

test implementations involving

145 companies and three customs

authorities. Underpinning the

digitalization of the supply chain

is IATA’s Cargo XML messaging

standard, which is being accepted

by an increasing number of

customs authorities.

Safety

The transport of lithium batteries is

a priority safety issue for air cargo.

The main concern is rogue shippers

who mis-declare consignments

containing lithium batteries.

To mitigate the risk that lithium

batteries pose for air cargo, IATA

has changed the Cargo Services

Resolution and Recommended

Practices on Consignment Security

Declaration. Eective July 2022, the

revised declaration will be the basis

for aligning security standards and

safety approaches for regulated

agents regarding lithium batteries.

Eective enforcement is also

critical. To that end, IATA is

advocating for the expanded

collection and distribution

of incident data and for the

criminalization of mislabeling

dangerous goods. IATA also

recognizes that operational

solutions are needed to attenuate

the risk to air cargo posed by

lithiumbatteries. IATA is working

with the Airport Services

Association (ASA) and the US

FAA to develop a standard for re

containment covers. In addition,

the Center of Excellence for

Independent Validators (CEIV)

Lithium Battery program has

been launched to encourage

best practice in handling

lithiumbatteries.

People

Talent is essential for the

advancement of air cargo. IATA

has two critical industry programs

that help attract people to, and

retain people in, the air cargo

business. The Future Air Cargo

Executive (FACE) program is

open to all air cargo and logistics

employees under the age of 35

and provides a specic summit for

this next generation of air cargo

management as part of the annual

IATA World Cargo Symposium

(WCS). The FACE UP contest,

heldbiannually, allows recent

graduates whose theses are about

innovation and transformation in

air transport logistics, such as air

cargo, supply chain management,

mobility and IT solutions, to present

their theses at the WCS.

“IATA has two critical

industry programs that

help attract people to,

and retain people in,



Financial Services

IATA Annual Review 2022

espite the ongoing

challenges of the COVID-19

pandemic, the IATA

Financial Settlement

Systems (IFSS) performed at high

levels of eciency and security in

2021. Excluding certain overhead

expenses, the IFSS reduced its cost

base $0.74 million compared with

2020 and processed $201.7 billion,

not including refunds. The amount

the IFSS processed in 2021 was up

from $156.3 billion in 2020 but was

still well below the $449.8 billion

that it processed in 2019.

IATA’s Billing and Settlement Plan

(BSP) expedites and simplies the

selling, reporting, and remittance

procedures of IATA-accredited

travel agents and improves

nancial control and cash ow for

approximately 400 participating

airlines. In 2021, the BSP processed

$74.7 billion, including $16.0 billion

in refunds. It processed $76.0

billion in 2020, including a larger

portion of refunds, at $25.0 billion.

In comparison, the BSP processed

$237.1 billion in 2019, the year

before the COVID-19 pandemic.

At the close of 2021, there were

153 BSPs in 181 countries and

territories. Their overall on-time

settlement rate was a stable

99.977%.

IATA’s Cargo Account Settlement

System (CASS) simplies the billing

and settling of accounts between

airlines and freight forwarders. It

operates through CASSLink, an

advanced, global, web-enabled

e-billing solution. In 2021, CASS

processed $57.4 billion, with an

on-time settlement rate of 99.999%.

This is similar to the $42.0 billion and

on-time settlement rate of 99.995%

in 2020. By comparison, CASS

processed $32.7 billion in 2019.

At the end of 2021, 97 CASS

operations were serving more

than 230 general sales and

serviceagents (GSSAs) and

over240 airlines.

To ensure that CASSLink continues

to deliver fast, secure, and reliable

service to all participants, IATA

launched the CASSLink project.

Theaim is to modernize the

platformto meet future operational

needs and to make it more user

friendly. The implementation of

the renewed platform is planned

tostartlater in 2022.

The IATA Clearing House (ICH)

provides fast, secure, cost-

eective settlement services

to more than 480 airlines and

associated companies in the value

chain. In 2021, the ICH processed

$19.2 billion and had a nancial

settlement rate of 100%, meaning

that the ICH settled every invoice

presented to it despite the industry

going through its biggest crisis

ever. In 2020, the ICH processed

$20.4 billion and had a nancial

settlement success rate of

99.977%. The year before, in 2019,

the ICH processed $62.5 billion.

IATA Currency Clearance

Services (ICCS) oer global cash

management that enables more

than 375 participating airlines to

centrally control and repatriate

their BSP and CASS sales, including

from countries with severe

currency liquidity issues. The ICCS

processed $22.5 billion in 2021,

compared with $16.0 billion in 2020

and $37.3 billion in 2019.

IATA’s Simplied Invoicing and

Settlement (SIS) is a cost-eective

electronic invoicing platform

legallycompliant for e-invoicing

in 46 countries. It enables the

exchange of electronic data

amongairlines and between

airlinesand direct operating cost

suppliers. The use of a single

standard, the IS-XML, simplies

business activity for the industry

and allows suppliers to use one

invoicing standard for all their

airlinecustomers. SIS automation

and cost control can save

companies upto 2% on operating

expenses.

In 2021, SIS had more than 2,850

participants, including 445 airlines,

FINANCIAL SERVICES

Financial systems maintain

eiciency and security

Blocked Funds

In contravention of bilateral

agreements and global standards,

some countries block the

repatriation of airline funds





of April 2022, a 40% increase



The country blocking the most

funds is Nigeria, where some



Governments are urged to work

with the aviation industry to



airlines from repatriating



enable aviation to provide the



jobs and to energize economies as



Financial Services

IATA Annual Review 2022

373 suppliers, and 2,032 other

entities. It processed over 1.12

million interline and supplier invoices

and settled more than $25.9 billion.

SIS processed $25.0 billion in 2020

and $76.0 billion in 2019.

IATA’s Enhancement & Financing

(E&F) service gives air navigation

service providers (ANSPs)

and airports access to IATA’s

globally trusted systems and

processes for accurate billing data,

standardized e-invoices that can be

automatically validated, and secure

fund collection. E&F helps airlines

avoid late payment penalties,

handle reconciliation concerns,

and resolve disputes through a

standardized billing process with a

single point of contact. In 2021, E&F

processed $2.0 billion, compared

with $1.9 billion in 2020 and $4.2

billion in 2019.

“CASS processed

$57.4 billion, with an

on-time settlement

rate of99.999%.”

Diversity & Inclusion

IATA Annual Review 2022

“Airlines compete

commercially,



inclusion demand



Diversity & Inclusion

IATA Annual Review 2022

he aviation industry is

continuing its focus on

gender diversity. Its

percentage of women

in senior and technical roles is

disproportionately low compared

with other industries. In fact, only

22—25 if we count the latest

additions—of IATA member airlines

have female CEOs. And industry

data suggests that a mere 4% of

airline pilots are female. Making

gender diversity an industry

priorityis essential.

To help raise awareness of, and

nd solutions for, the air transport

industry’s gender gap, IATA

launched its 25by2025 initiative in

2019. More than 111 signatories

representing airlines and aviation

companies from all parts of the

world and responsible for 50% of

global air trac have signed up to

25by2025. Fully 36 signatories have

joined the initiative since the IATA

Annual General Meeting in Boston

in October 2021.

Airlines compete commercially,

but diversity and inclusion demand

their collaboration. Every quarter,

the 25by2025 signatories meet

to share best practices and to

discuss how they are integrating

diversity and inclusion into their

business practices and strategies

to strengthen their workforces.

Airlines are increasingly focused

on attracting, developing, and

retaining female employees from all

walks of life whose experiences and

gender will help to shape the future

of the air transport industry.

Up to end April 2022, ve female

CEOs have been appointed, at KLM

Royal Dutch Airlines, El Al, Hahn

Air, Austrian Airlines, and Pegasus.

Their appointments exemplify an

epochal change in leadership within

the industry and among IATA’s

membership. Most importantly,

the appointment of women to the

industry’s uppermost positions is

tangible evidence of the degree to

which airlines prioritize diversity

and inclusion.

These and other eorts in respect

of diversity and inclusion will be

shared at the annual IATA Diversity

& Inclusion Awards held as part

of IATA’s Annual General Meeting,

in Qatar, in June 2022. The IATA

Diversity & Inclusion Awards are

the industry’s principal means

of recognizing and celebrating

excellence in driving the 25by2025

agenda in three categories:

inspirational role model, high-yer,

and diversity and inclusion team.

DIVERSITY & INCLUSION

25by2025 initiative

gathers momentum

Airline Retailing

IATA Annual Review 2022

irline retailing enables

travelers to see the

value of airline oers

through a multitude of

options beyond the standard

fare and schedule information,

regardless ofwhether travelers

buy through anairline’s website

or a travel agent.Complementing

these purchase options are

new paymentoptions that allow

customers to use the payment

method of their choice and airlines

to benet from reduced payment

costs and the ability to accept

diverse forms of payment onboard.

What is more, whatever oer a

traveler chooses, the traveler’s

purchase will be fullled using

a single order. Customers will

no longer have to wrangle with

Passenger Name Records (PNRs)

or a booking record; with e-tickets

(the receipt); and with electronic

miscellaneous documents

(EMDs) when they purchase

ancillary services. And airlines

will no longerhave to struggle to

reconciledierent elements of

a traveler’s journey should that

journey be disrupted, as there

will just be one order for an entire

journey, whether on a single

airlineor multiple airlines.

The goal is to achieve customer

centricity. The air transport

industry desires to put travelers

fully in control of their credentials

and data in a way that permits them

to eortlessly consume any airline

service, even, for example, during

travel disruptions. To achieve this,

the industry is transforming its

legacy processes and artifacts into

modern retailing processes.

Modernizing legacy ticketing and

back-oce systems and processes

is a case in point. The introduction

of e-tickets digitized but did not

otherwise change the related

legacy paper processes. Online

retailing, however, requires the

complete replacement of legacy

e-tickets, PNRs and EMDs. This is

the purpose of ONE Order, which

combines all three in the single

order common to Internet retailing.

Along these lines, Finnair

announced in September 2021

in anindustry rst that it would

no longer process legacy-based

distribution transactions beyond

the end of 2025 and issued a call

to action for others in the industry

to join it in this signicant step

toward airline retailing. The new

distributioncapability (NDC)

standard is the crucial gateway

toenabling airline retailing, as

it gives airlines control of the

oer, which, in legacy systems,

is created outside the airline. To

date, more than 60 airlines have

some degree of airline retailing

capabilitythroughthe NDC.

IATA is supporting airlines’

transformation to airline retailing

by ensuring that standards,

implementation guides, and

other requirements are easily

accessible to all at every level

of each organization. IATA

also engages with technology

providers, travel agents, online

travel agencies (OTAs), metasearch

entities, and corporate buyers

to ensure that alltechnical pain

points are identied and that

alternative industry approaches

areproposed where possible.

In October 2021, IATA established

its Airline Retailing Maturity (ARM)

index to help airlines achieve

airlineretailing. The ARM index

looks at an airline’s technical

capabilities and partnerships with

sellers, and oers a “value capture

compass,” atool to help airlines

pinpoint where value is being or

could be created. According to a

report by McKinsey, airline retailing

has a value creation potential of up

to $7 per passenger, the equivalent

of approximately 4% of revenue.

AIRLINE RETAILING

Airline retailing to put

the customer in control

Airline Retailing

IATA Annual Review 2022

“The air transport

industry desires to

put travelers fully

in control of their

