iata travel trade

Understanding the International Air Transport Association (IATA)

Table of Contents:

• What Is IATA and Its Role in the Aviation Industry?
• The History of IATA and How It Came to Be
• How IATA Is Structured and Governed
• The Benefits of Being a Member of IATA
• The Impact of IATA on Air Travel Policies and Regulations
• The Role of IATA in Promoting Safety and Security in Air Travel
• How IATA Influences the Pricing and Distribution of Airline Tickets
• The Role of IATA in Promoting Sustainability in Aviation
• The Challenges Facing IATA in a Rapidly Changing Aviation Industry
• The Future Outlook for IATA and Its Role in Shaping the Future of Air Travel
• How to Become a Member of IATA
• The Role of Technology in the Evolution of IATA
• Exploring the Global Reach of the International Air Transport Association
• How Airlines Can Benefit from Working with IATA

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The International Air Transport Association (IATA) is a globally recognized trade association of airlines established to promote and foster safe, reliable, and affordable air transport for all people and goods. IATA has been at the forefront of shaping the aviation industry for more than 75 years, and its impact is felt worldwide. Here is everything you need to know about IATA to understand its role in the aviation industry, its history, the benefits of being a member, and its future outlook.

In simple terms, IATA is a trade association of airlines comprising more than 290 airlines from 120 countries worldwide. It is responsible for carrying out activities that support the safe and reliable transportation of people and goods. Its role includes setting standards, developing policies, and advocating best practices for the airlines it represents. IATA ensures that all airlines under its membership adhere to common operating procedures, and aims to promote the adoption of international regulatory frameworks for aviation.

One of the key functions of IATA is to provide a platform for collaboration and communication between airlines, governments, and other stakeholders in the aviation industry. Through its various committees and working groups, IATA facilitates discussions on issues such as safety, security, and environmental sustainability. It also provides training and education programs to help airlines improve their operations and meet industry standards. Overall, IATA plays a crucial role in promoting the growth and development of the aviation industry, while ensuring that safety and efficiency remain top priorities.

IATA was established in April 1945 in Havana, Cuba, by a group of airlines that sought to standardize commercial airline operations across the globe. Initially, the organization was focused solely on the operational safety of air travel, but it gradually expanded to include other areas such as ticketing, service quality, and environmental conservation. Its headquarters is based in Montreal, Canada, and has regional offices in various parts of the world.

Over the years, IATA has played a significant role in shaping the aviation industry. It has introduced several initiatives and programs aimed at improving the efficiency and safety of air travel. One such initiative is the IATA Operational Safety Audit (IOSA), which is a globally recognized safety standard for airlines. Additionally, IATA has been at the forefront of promoting sustainable aviation practices, such as the use of biofuels and reducing carbon emissions. Today, IATA represents over 290 airlines worldwide and continues to work towards the betterment of the aviation industry.

IATA is governed by a Board of Governors consisting of 31 airline CEOs and elected representatives from the five largest airlines by revenue in North America, Asia-Pacific, Europe, Latin America & the Caribbean, and the Middle East & Africa. The organization also has an Executive Leadership Team to oversee its day-to-day operations and implementation of strategic directives. IATA has a well-defined structure that includes a number of committees, subcommittees and working groups comprised of subject matter experts and airline representatives.

One of the key committees within IATA is the Safety and Flight Operations Committee, which is responsible for developing and promoting global safety standards and best practices. This committee works closely with airlines, regulators, and other industry stakeholders to ensure that safety remains a top priority in the aviation industry.

In addition to its governance structure, IATA also provides a range of services and products to its members, including training programs, industry data and analysis, and advocacy on key issues affecting the aviation industry. These services are designed to help airlines operate more efficiently and effectively, and to promote the growth and sustainability of the industry as a whole.

Membership of IATA comes with numerous benefits to airlines. These include access to valuable industry research and data, training and certification programs, safety and security initiatives, regulatory and policy advocacy, and standardization of operational procedures. IATA membership also provides airlines with the opportunity to build relationships with industry stakeholders and to participate in industry events and conferences.

Another benefit of IATA membership is access to the IATA Clearing House, which provides a secure and efficient system for settling financial transactions between airlines. This helps to reduce the risk of payment defaults and fraud, and ensures timely and accurate payment processing.

In addition, IATA membership offers airlines the opportunity to participate in environmental sustainability initiatives, such as the Carbon Offset and Reduction Scheme for International Aviation (CORSIA). This program aims to reduce the carbon footprint of the aviation industry by offsetting emissions through the purchase of carbon credits, and by promoting the use of more fuel-efficient aircraft and sustainable aviation fuels.

IATA has played a significant role in shaping air travel policies and regulations globally. Examples of its influence include its involvement in the establishment of the International Civil Aviation Organization (ICAO), which regulates international civil aviation, and its establishment of industry standards such as the Ticketing Handbook and the Standard Ground Handling Agreement (SGHA). Recently, IATA has been working to influence the rollout of the Single African Air Transport Market (SAATM), which aims to create a single, unified air transport market across the African continent.

Furthermore, IATA has been actively involved in promoting sustainable aviation practices. In 2008, it launched the Carbon Offset Program, which allows passengers to offset the carbon emissions from their flights by investing in environmental projects. IATA has also been working with airlines to reduce their carbon footprint through the implementation of more fuel-efficient technologies and the use of sustainable aviation fuels. In 2019, IATA set a target for the industry to achieve carbon-neutral growth by 2020 and to reduce net carbon emissions by 50% by 2050.

Safety and security are paramount concerns for airlines and air travelers alike. IATA has developed industry standards and recommended practices that aim to enhance safety and security in air travel. These include measures to mitigate risks associated with illegal shipment of goods, counter-terrorism, and technological solutions to enhance passenger experience and satisfaction. IATA also provides training and certification programs to ensure that airlines maintain world-class standards of safety and security.

In addition to its efforts to enhance safety and security in air travel, IATA also plays a crucial role in promoting sustainability in the aviation industry. The organization has set ambitious targets to reduce carbon emissions and has developed a comprehensive strategy to achieve these goals. This includes the implementation of new technologies, the use of sustainable aviation fuels, and the adoption of more efficient operational practices.

Furthermore, IATA works closely with governments and other stakeholders to advocate for policies that support the growth and development of the aviation industry. This includes initiatives to improve infrastructure, streamline regulatory processes, and promote open and fair competition. By working collaboratively with its members and partners, IATA is able to drive positive change and ensure that air travel remains safe, secure, and sustainable for years to come.

As the world’s largest trade association of airlines, IATA plays a vital role in price and distribution matters for air travel. IATA’s Billing and Settlement Plan (BSP) provides an efficient, cost-effective, and reliable distribution and financial settlement service for airline tickets. The organization has also developed the New Distribution Capability (NDC), which is a technology standard that allows airlines to better manage and customize airline fares and ancillary services for travelers, ultimately improving the passenger experience throughout the booking process.

Sustainability is a critical focus area in the aviation industry, and IATA is dedicated to promoting sustainable practices. IATA established the Aviation Carbon Reduction program that aims to reduce carbon dioxide emissions to comply with the Paris Agreement and other sustainability objectives. IATA also supports research and development to enhance eco-efficient operations, innovations in alternative fuels, and the use of new technologies to reduce the environmental impact of air travel.

The aviation industry is constantly evolving, and IATA faces numerous challenges in responding to emerging trends and issues. For example, IATA is grappling with the rapid pace of technological change and its impact on air travel. Cybersecurity threats, shifts in passenger demographics, and workforce limitations are some of the other challenges that the organization faces. IATA works closely with its member airlines and industry stakeholders to navigate these challenges effectively.

Despite the challenges facing the aviation industry, IATA remains an integral part of the industry and is dedicated to promoting the growth of air travel in a sustainable and secure manner. The organization is committed to advocating for policies and programs that foster global connectivity, innovation, and seamless travel experiences. IATA’s progressive approach to air travel encourages innovation, underscores safety, and seeks to ensure that the industry meets the evolving needs of passengers and clients over the long-term.

Airlines that wish to become members of IATA must meet certain criteria, including being a licensed air carrier or holding a licence to perform air transport operations, meeting financial requirements, and complying with IATA operational and safety standards. Interested airlines should contact IATA for further information on the application process.

Technology is playing an increasingly crucial role in the aviation industry, and IATA is evolving to remain relevant in this environment. The organization has been proactive in researching and developing technology solutions that benefit its members, such as the NDC standard and the ONE Order initiative, which aim to simplify the airline booking process. IATA continues to push technological boundaries by exploring emerging technologies such as blockchain, artificial intelligence, and biometric authentication.

IATA’s reach extends far beyond its Montreal headquarters. The organization has regional offices in different parts of the world, including Africa, Asia-Pacific, Europe, Latin America, the Middle East, and North America. It is also working with industry stakeholders to expand its reach and influence in new and emerging markets.

Airlines that work with IATA as members or partners benefit from the organization’s global reach, technical expertise, and advocacy for air travel. IATA provides its members with access to the latest industry research and data, innovative technology solutions, training and certification programs, policy advocacy, and networking opportunities. For airlines looking to improve their operations, safety, security, and compliance, working with IATA is a critical step.

In conclusion, IATA has played an integral role in shaping the aviation industry over the last 75 years. Its commitment to safety, security, sustainability, and innovation has contributed significantly to the growth and development of air travel globally. As the industry continues to evolve, IATA remains committed to being at the forefront of innovation, advocacy, and collaboration between airlines and other stakeholders. By staying current with industry trends and challenges, IATA aims to ensure a bright and prosperous future for the aviation industry.

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IATA – International Air Transport Association

Travel and Tourism have been recognized as the single largest item in world trade. Perhaps, it is likely to become the largest global industry by the turn of this millennium. Already accounting for more than 9.5% of total world trade, 30% of the service sector, and about 13% of the global employment.

In fact it, it has become a multi-facet industry that affects nearly all the sector of the international and national economy. To develop and promote tourism at globally, there are several international, national, and regional travel and tourism promotion organizations such as WTO , PATA , ASTA , IATA , and ICAO .

Apart from these promotional organizations, there are several travel trade organizations, with specific deal with travel agency and tour operation business at regional travel, national and global travel.

Travel trade organizations provide a common platform to solve travel company’s various problems such as HRD, financial, marketing, safeguard interests, lay down the code of ethics, and also helps the agency on a variety of travel issues.

International Air Transport Association (IATA)

The International Air Transport Association was founded in 1945 by the airlines of several countries to regulate the world’s civil air transport. It is the successor to the International Air Transportation Association founded at Hague in 1919.

As a non-governmental organization, it drew its legal existence from a special Act of the Canadian Parliament in December 1945. It closely resembles the International Civil Aviation Organization in terms of its activities and organizational structure.

IATA is a voluntary, non-exclusive, non-political democratic organization and its membership is open to any operating airline which has been licensed to provide scheduled air services by the government.

Objectives of IATA

IATA is purely a non-political, commercial regulatory organization and has powers to regulate every act of its constituents. The main objectives of IATA are:

• To ensure the safe, regular and economical air transport for the benefits of people worldwide.
• To provides a means of collaboration.
• To prevent economic waste caused by unreasonable competition.
• To encourage the art of aircrafts design and operation for peaceful purposes.
• To promote and develop international tourism.
• To provide a common platform for travel agencies and tour operators .
• To provide training and education facilities for members.
• To cooperate with the International Civil Aviation Organisation and other international and national organizations.

Membership of IATA

IATA has two types of members:

Active Members

Associate members.

Active membership is further divided into two types :

• Trade Associations and Traffic Co-Ordination
• Trade Associations

Any airline which has been licensed to operate scheduled air services by the appropriate authority to transport passengers, mail, and cargo between the territories of two countries, is eligible to become an active member of the association. The active members have various rights, duties, and authority. Presently, there are more than 250 airlines as active members from 200 countries.

This membership is open to any other organization/enterprise who is operating in transport, hotels, resorts, travel trade and indirectly involved in tourism-related activities. The application for the membership in the association is to be submitted in the writing for the consideration and action of the executive committee and all such concerns can become active or associate members, only after approval by the executive committee.

However, any enterprise whose application is rejected by the committee can appear in the next general meeting of the committee.

Organizational Structure of IATA

IATA administration is carried out under a director-general, corporate secretary, senior director, regional directors, and regional technical directors. The overall control and management of the association lie with the general meeting of the members which take place annually.

Basically, the meeting has two main responsibilities (a) Internal affairs of the association and (b) Functions- Finance, accounting, medical, traffic conference, legal, technical and other activities related to industry. The internal affairs include the appointment of the president and approval of the budget etc.

Roles and Contribution of IATA

IATA is a non-government origination that regulates the world’s civil air transportation. IATA plays an important role in the travel trade and civil air transportation. Some main and important role and contributions of IATA are following as:

• IATA provides a common platform to solve many travel trade problems.
• IATA helps travel agencies and tour operators to establish their professionalism and integrity in the field of tourism.
• IATA helps to simplify the traveling process.
• IATA helps in the promotion and development of tourism.
• IATA helps the government to formulate civil aviation policy, paid tourism policy.
• It lays down rules and conditions for the approval of a travel trade organization.

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International Air Transport Association (IATA) Explained

The International Air Transport Association (IATA) is the global trade association for the world’s airlines.

Its mission is to lead and serve its members, as well as to represent their interests in a way that boosts the airport transport industry.

Key facts about IATA:

• It represents around 260 airlines or 83% of total air traffic.
• It has global reach.
• Flights by IATA members represent 83% of total traffic.
• It was founded in Havana, Cuba, in April 1945.
• It had 57 members from 31 nations, mostly in Europe and North America when it was first established in 1945. Today it has some 260 members from 117 nations in every part of the globe.
• It’s priorities include safety, security, environment, services, simplifying the business and helping to build relationships within the industry.
• IATA’s Billing and Settlement Plan serves as the financial backbone of the industry by managing the flow of the over $270 billion generated annually by travel agent ticket sales to airlines.

International Air Transport Association profile:

IATA is a globally recognised trade association for airlines and has been operating for more than 50 years. Its members include both freight and passenger carriers and it has offices in 53 countries around the world.

It has grown alongside the air travel industry, working in conjunction with the sector to help develop standards, practices and procedures to regulate it and ensure consistent levels of service for customers. The IATA is a truly global organisation and its 260 members come from more than 117 nations.

As well as consumer protection, the IATA has been involved in helping the airline industry become more sustainable. The organisation offers information on airlines, a range of publications and training programs and accreditation for those working in the travel industry.

In addition, it supplies a range of financial services, such as a debt collection service for airlines.

Criteria for membership

IATA Membership with full rights and privileges may only be obtained after: IATA Operational Safety Audit (IOSA) registration, An administrative review by the Membership Department, Payment of all application fees and membership dues.

Successful completion of an IOSA will result in addition to the IOSA registry. An airline must be on the IOSA registry before IATA Membership can be approved.

After this, an application form is submitted with the following supporting documents:

• A certified copy of the Air Operator’s Certificate (AOC), valid for a minimum of six months, with ORIGINAL Stamp, date and signature from the issuing Authority (not a notary), together with the Operational Specifications issued by the State of Registry, if applicable.
• A certified copy of the Certificate of Registration with appropriate authority e.g. Chamber of Commerce or equivalent. Certification by a notary is acceptable.
• Audited Financial Statements for the applicant airline, and if majority owned by another company (including state ownership), the financial statements of the owner company. These must be certified by a chartered or public accountant. For new airlines, a business plan prepared by a chartered or public account is acceptable.
• The Annual Report of the applicant airline, or company by-laws showing how it is constituted, or airline profile.
• Valid insurance certificates with aircraft type, registration number for each aircraft and respective details of registering authority, valid for a minimum of six months.
• Traffic statistics for the preceding two years. This requirement does not apply to new airlines.
• Published timetable/schedule, if the airline has scheduled operations. For non-scheduled operations, a list of destinations is requested.

List of IATA Member Moving Companies

• Armstrong Relocation
• Atlas Van Lines
• Nippon Express

Opinions about the International Air Transport Association

IATA appears on most major airline websites (often via an identifying IATA code) and also has its own Wikipedia page.

Its importance as a trade association is obvious, as is the involvement it has had in developing certain industry standards for the airlines sector. The fact that its members are responsible for upwards of 90% of the world’s scheduled airline traffic is a point that is made frequently.

Online articles about the airline industry often mention IATA and its involvement in deciding key issues and making important suggestions, such as regulating the size of luggage destined for overhead bins.

IATA is mentioned in numerous contexts, from project management partnership, to EU regulation. Given the frequency and breadth of news reports mentioning IATA it is clearly an active and prominent trade association.

Website: http://www.iata.org/Pages/default.aspx

IATA Explained: The Role of International Air Transport Association in the Aviation Industry

• 11 min read
• 4 Nov, 2022
• 1 Comment Share

Someone has to be in control. Source: Fine Art America

What is IATA?

IATA or the International Air Transport Association is the global trade association of airlines (for both freight and passenger carriers) that regulates the aviation industry by developing standards, procedures, and practices. As of today, it has 290 airline members in 120 countries comprising around 82 percent of total air traffic. If you feel more comfortable with video content, watch our 9-minute explainer of IATA’s history, functions, and role in the industry. For more details, keep reading.

IATA overview

Brief history of IATA

1919 was called “ the year of the world's first international scheduled services ” because of the International Air Traffic Association's creation. Its main areas of concern were the technical and legal issues, and a lot was done in those early days to set tech and safety standards and create a solid legal basis. However, many questions remained untouched, especially the ones related to rates, itineraries, schedules, and revenue from connecting flights. In 1944, the International Civil Aviation Organization (ICAO) was formed as an intergovernmental body to tackle the existing issues, provide economic regulation, and manage air traffic. However, it failed to solve all the problems. So, in 1945, the representatives of 57 airlines formed IATA to address the challenges of developing tariffs and fare rules, allocating revenue, creating global flight schedules, and much more. Today, the international scheduled air transport industry is over 100 times larger than it was in 1945, not the least due to IATA's regulation, which keeps working hard to make air operations safer and more efficient.

IATA’s mission and main purposes

As stated on IATA’s official website , its mission is “ to represent, lead, and serve the airline industry.”  It means that IATA advocates for the interests of airlines on the world stage as well as creates industry standards that

• simplify processes,
• increase safety,
• enhance passenger convenience,
• reduce costs,
• improve efficiency, and
• help achieve sustainability goals.

This way, IATA regulations benefit all parties involved, i.e., airlines, travel agents, passengers, customers, ground handlers, and others. IATA also offers expert services, professional support, and educational options to industry stakeholders.

IATA vs ICAO vs FAA

IATA’s main areas of activity

IATA programs: standards and regulations of different aspects of air transportation

The Programs section includes a wide range of initiatives that regulate various aspects of the commercial aviation industry.

Cargo: regulating and digitizing air freight

Interesting fact: Every day, on average, 657 million shipments worth $18.6 billion are transported by 100,000 planes, including 80,000 flowers and 200 race horses. Sounds impressive, right? Obviously, such cargo volumes and diversity demand close attention to every detail, taking into account the unique requirements of some categories – and clear potential danger of others. So IATA sets compliance standards that concern the safe transportation of

• medical/pharma items,
• dangerous goods,
• live animals, and
• perishables (read about the specifics of cold-chain logistics in our dedicated post).

Sometimes it’s better to send stuff by airmail. Source: AlahedNews

Passenger experience: streamlining airport procedures and adopting biometric recognition

Since global passenger traffic is expected to double by 2037, IATA and other industry organizations work on establishing standards to accommodate such volumes and streamlining airport procedures. The One ID initiative aims at facilitating passenger identification through paper-free, contactless biometric recognition technology. Read our article describing airlines’ self-service solutions for more innovation stories.

Distribution and payment: implementing NDC and regulating interlining flights

This part is about IATA trying to simplify and enhance the customer shopping and purchasing experience both before and during the flight. One of the main initiatives here is New Distribution Capability ( NDC ) – a new data exchange standard that allows airlines to deliver rich content and ancillaries to their customers. Other projects concern regulating connecting flights (see Multilateral Interline Framework ), working on rates that change dynamically (read about dynamic pricing here), and addressing other transaction-related aspects.

How flight pricing works

Environment: working towards sustainability goals with Fly Net Zero, SAF, and offsets

Today, aviation is one of the major sources of greenhouse gasses that cause irreversible climate changes, so IATA and member airlines adopt various strategies to reduce the harmful impact and decarbonize their operations. In 2021, IATA member airlines signed a resolution committing to achieve net-zero carbon emissions from their operations by 2050. To reach this ambitious target, IATA developed a strategy that involves a combination of methods.

• Sustainable Aviation Fuel (SAF) usage that minimizes emissions should account for 65 percent of the result.
• Offsets (read about Carbon Offsetting and Reduction Scheme for International Aviation or CORSIA in a separate article) and carbon capture programs are slated to comprise another 19 percent.
• New digital and engine technologies (electric and hydrogen) should contribute 13 percent. Learn more about the role of technologies in making the travel industry greener in our dedicated post.
• Improving infrastructure and operational efficiencies will presumably comprise 3 percent of the total change.

Other IATA’s green initiatives include managing cabin waste, combating wildlife trafficking, and educating passengers.

Our vision of green travel

Safety: improving operations for utmost security

Epic fail. Source: Bored Panda

Funny enough, the safer aviation gets, the harder it becomes to improve it because there’s less areas for enhancement. But still, IATA has lots of specialized programs that focus on

• operational safety – as the primary concern of all airlines – that oversees cabin activities, runway procedures, in-flight processes, fatigue management, and so on;
• corporate safety to improve performance and mitigate risks;
• safety audit to assess the implementation of developed policies and procedures;
• customer feedback collection for anyone who wants to make suggestions or communicate their concerns;
• data management to analyze issues and identify potential risks; and much more.

Looks pretty bad, but for the record, it’s not your daddy's usual duct tape; it’s a very specialized speed tape that costs up to $1000 per roll and is used as a temporary fix of minor damages. Source: MEME

Operations and infrastructure: optimizing daily workflows

Passengers grumbling about tight baggage allowances are also the result of IATA’s activity. Airlines always strive to increase operational efficiency both on the ground and during the flight, so IATA develops standards that regulate

• technical operations (optimizing and digitizing technical aspects, maintenance, and parts management);
• baggage services (it’s not only about the suitcase sizes but also about tracking luggage and managing lost and found items);
• ground operations (designating procedures to maximize the safety and efficiency of ground handling activities);
• pilot and maintenance technicians training (developing programs for flight crew and tech staff training, licensing, and assessment); and
• fuel management.

Those rules. Source: Bored Panda

IATA also works with airports on standardizing, digitizing, and optimizing air traffic management and airport infrastructure.

Aviation security: enhancing safety through global cooperation

The aviation security section addresses the safety aspect through close collaboration with governments and international organizations. Such partnership has to tackle existing and potential threats and vulnerabilities by developing and implementing global standards. Some of the initiatives concern innovating and adopting modern screening detection technologies, while others focus on data sharing or address cybersecurity issues.

The innovation hub: transforming the aviation industry

The innovation hub is where you can learn of and take part in, well, IATA’s innovation projects. These activities are governed by the Digital Transformation Advisory Council (DTAC) and include

• Accelerate@IATA that connects airlines and innovative startups,
• Hackathons that give talented developers a chance to share their new ideas and solutions,
• Think Tank that unites ideation teams that work on new initiatives, and so on.

Besides, that’s where you can find IATA’s developer portal where external IT specialists can find tech documentation , get access to APIs and NDC guidelines, obtain certification, etc.

IATA’s services: products and solutions for the aviation industry and its partners

The Services section mainly caters to those who work with airlines, i.e., travel agents, freight forwarders, airports, ground handlers, and other industry partners. As the name declares, it’s not about the regulations or telling others what and how to do but about supporting collaboration and providing instruments for efficient operations. Here’s what IATA offers.

IATA number: accreditation for travel agents and cargo professionals

Being IATA-certified means a lot for travel agents. Besides joining a community of over 54,000 members operating in 217 countries and territories, the IATA number gives travel agents the power to issue tickets on behalf of airlines, grants access to the Billing and Settlement Plan (BSP) , and confers industry recognition and credibility acknowledgment. Check our detailed article on how to get that IATA certification if you want a step-by-step guide. It’s a similar story about getting IATA’s Cargo Agent accreditation. It gives companies involved in the air freight industry global recognition of financial and professional competence.

Data & Statistics: sharing industry data and insights

IATA collects massive amounts of diverse data from airlines, airports, travel agents , and other industry players. Data categories are

• Passenger traffic data,
• Cargo data,
• Safety and MRO solutions,
• Travel agent data, and

Information allows you to get a complete picture of passenger and cargo flows, identify and analyze market trends, benchmark your own company, and make data-based decisions. Some datasets are available for online purchase (e.g., monthly airline traffic statistics ), while other tools can be accessed online or through API integration (e.g., Global Agency Directory ). For example, for carriers, IATA offers a Direct Data Solutions (DDS) tool to get access to a global dataset of airline sales, market, and itinerary data. Airlines can connect via APIs, use a web-based analytics tool, or receive regular reports. By the way, if you’re interested in flight APIs , we got all sorts of them for you.

Compliance solutions: ensuring standardization and compliance

IATA provides instruments that help industry players comply with standards and regulations. These tools include

• DG AutoCheck is for those dealing with dangerous goods;
• The Air Cargo Tariff and Rules (TACT) is the most current collection of air cargo market information such as rates, rules, compliance regulations, and schedules;
• Integrated Management Solutions (IMX) is a software platform developed for airlines and ground handlers that helps collect, manage, and analyze quality and safety data; and
• Timatic is the complete collection of travel requirement rules.

These products can help optimize various cargo, passenger, and ground handling operations, provide most current regulations data, and ensure companies compliance with industry standards.

Financial services: settlement systems and other financial instruments

To facilitate transactions between the air industry stakeholders, IATA provides a number of financial instruments. Thus, for airlines, there’s a whole Settlement Services (ISS) toolkit:

• Billing and Settlement Plan (BSP) to settle passenger sales with travel agents,
• Cargo Account Settlement Systems (CASS) to settle freight payments with freight forwarders,
• IATA Clearing House (ICH) for debt collection,
• IATA Exchange Rates to support interline billing and establish tariffs, and much more.

Amen to that. Source: CHEEZburger

Similarly, IATA offers digital financial helpers to travel agents, airports, and industry partners. In this section, you can also find Air Pulse , IATA’s financial and distribution news portal.

IATA Consulting: sharing expertise and experience

Obviously, during 70+ years of its existence, IATA has gained unbeatable expertise in all possible aspects of the air industry. So now its specialists help airports, airlines, tour operators , travel agents, freight forwarders, and other companies understand the market, optimize operations, and grow their businesses. IATA offers a wide range of consulting services within such scopes as

• revenue enhancement ,
• safety and flight operations,
• air cargo traffic forecasting,
• fuel management,
• sustainability strategy,
• airport development, and much more.

If you want to take advantage of IATA’s unrivaled industry knowledge, you have to contact them for further information on such a partnership via this contact form .

IATA codes: an industry recognized identification system

IATA has developed several coding systems to facilitate identification of airports, airlines, luggage, and so on. You can utilize their free Airline and Location Code Search online tool or purchase the Airline Coding Directory to have the coding information in your business management system for commercial purposes such as ticketing, cargo documentation, etc.

Advertising: marketing and sponsorship opportunities

If you want to advertise to the aviation industry, IATA offers a lot of options to promote your brand, product, or service. You can select one or several formats (printed publications, website, or email) to make your marketing campaigns global or highly-targeted and personalized. Check out their Media Kit for options and pricing or contact them directly for full information.

IATA training: education and certification programs

You can visit IATA’s Training section if you want to add a certificate or diploma in one of the air industry subject areas to your resume. You can choose live or online training, opt for in-house education, or study yourself. Assessment is also conducted in various formats, i.e., live classroom, live virtual, online supervised, or unsupervised. IATA also has an international network of over 450 partnering institutions where you can obtain in-depth, aviation business-centric knowledge in the chosen area – from air navigation to airline business management to environment protection.

Other useful resources

In addition to all the valuable information and handy solutions we described, IATA’s website contains a few more useful sections we’d like to mention. The Events page announces all the upcoming conferences, exhibitions, and industry meetings. The IATA Customer Portal is where you can create an account that gives personalized access to IATA’s services, direct communication channels, special offers, and more. The You & IATA section categorizes information and solutions in a visitor-centric way. It means that if you are, for example, a freight forwarder or a travel agent or just a bored traveler stuck in the airport for a long layover, you can choose the relevant category and find the products or services IATA can offer to you. Try it out and we’re sure you’ll get a lot of new, interesting, and valuable information from the leading aviation industry regulatory establishment – IATA.

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International air transport association (iata).

Description

The International Air Transport Association (IATA) is an international trade body founded in 1945 by a group of airlines. Today, IATA represents some 300 airlines comprising 94% of the international scheduled air traffic. The organisation also represents, leads and serves the airline industry in general.

IATA Flight Safety Activities

IATA is very active in promoting flight safety, particularly in the following areas:

• Safety Statistics Analysis
• Safety Auditing, including the  IATA Operational Safety Audit  (IOSA) programme.
• Infrastructure Safety. IATA has been a consistent supporter of EUROCONTROL Safety Improvement Initiatives such as the  European Action Plan for the Prevention of Runway Incursions  (EAPRI) and the  European Action Plan for the Prevention of Level Bust .
• Safety Data Management & Analysis, including  Safety Trend Evaluation, Analysis & Data Exchange System  (Safety Trend Evaluation and Analysis Data Exchange System) and the provision of a  Flight Data Analysis  (FDA) service.
• Integrated Airline Management System, providing courses in safety management systems.
• Flying Operations.
• Cargo & Dangerous Goods Safety

IATA has also been actively involved in the promotion of the  Global Aviation Safety Road Map  (GASR)

Further Reading

• For further information, visit the  IATA website
• IATA Airline and Airport Code Search

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• Airlines for America (A4A)
• Airlines for Australia & New Zealand (A4ANZ)
• Airlines for Europe (A4E)
• Air Transport Association of Canada (ATAC)
• Arab Air Carriers' Organization (AACO)
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Global Air Travel Demand Soars in February 2024, IATA Reports

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ITA Data Release: January 2022 International Air Passenger Travel

International air traffic passenger enplanements up 128%, air passenger travel between the u.s. and europe up 398%.

Data recently released by the National Travel and Tourism Office (NTTO) show that in January 2022 :

U.S.- International air traffic passenger enplanements (arrivals + departures) totaled 10.736 million in January 2022, up 128% compared to January 2021, however, enplanements attained 54% of its volume in January 2019.

Originating Non-Stop Air Travel in January 2022

• Non-U.S. Citizen Air Passenger Arrival s to the United States, from foreign countries, totaled 2.298 million, -56.5% compared to January 2019 and +115% compared to January 2021.

On a related note, overseas ‘visitor’ arrivals totaled 1.0 million in January. While January was the third consecutive month that overseas visitor arrivals totaled over 1.0 million, January overseas ‘visitor’ arrivals was down from 1.68 million in December 2021.

• U.S. Citizen Air Passenger Departures from the United States to foreign countries totaled 2.451 million, -38.3% compared to January 2019 and +137% compared to January 2021.

World Region Highlights 

• Top Countries of Total International Air Traffic Passenger Enplanements to and from the United States were Mexico 2.755 million, Dominican Republic 719k, Canada 695k, the United Kingdom 523k, and Colombia 415k.
• Top U.S. Ports , serving international locations, were Miami (MIA) 1.518m, New York (JFK) 1.42m, Los Angeles (LAX) 877k, Houston (IAH) 636k and Chicago (ORD) 601k.
• Top Foreign Ports , serving U.S. locations, were Cancun (CUN) 905k, Mexico City (MEX) 563k, London Heathrow (LHR) 480k, Guadalajara (GDL) 341k, and Paris Charles de Gaulle (CDG) 282k

Interested in an interactive data visualization of these statistics? Please visit our I-92/APIS International Air Passenger Monitor for a more comprehensive and customizable experience!

The APIS/I-92 Program provides information on non-stop international air traffic between the United States and other countries. The data has been collected from the Department of Homeland Security - Customs and Border Protection’s Advance Passenger Information System (APIS) since July 2010. The APIS based “I-92” system provides air traffic data on the following parameters: number of passengers, by country, airport, scheduled or chartered, U.S. Flag, foreign flag, citizens and non-citizens. Visit the APIS/I-92 Data Program home page for more information on airline travel to and from the United States.

Keep up-to-date on the travel and tourism industry by visiting TI News.

Economics Industry outlook upgraded to $25.7 billion profit in 2024

IATA announced strengthened profitability projections for airlines in 2023, which will then largely stabilize in 2024. However, net profitability at the global level is expected to be well below the cost of capital in both years. Very significant regional variations in financial performance remain.

Outlook highlights include:

• Airline industry net profits are expected to reach $25.7 billion in 2024 ( 2.7% net profit margin). That will be a slight improvement over 2023 which is expected to show a $23.3 billion net profit ( 2.6% net profit margin).
• In both 2023 and 2024 return on invested capital will lag the cost of capital by 4p.p., as interest rates around the world have risen in response to the sharp inflationary impulse.
• Airline industry operating profits are expected to reach $49.3 billion in 2024 from $40.7 billion in 2023.
• Total revenues in 2024 are expected to grow 7.6% year over year to a record $964 billion. Expense growth is expected to be slightly lower at 6.9% for a total of $914 billion.
• Some 4.7 billion people are expected to travel in 2024, an historic high that exceeds the pre-pandemic level of 4.5 billion recorded in 2019.
• Cargo volumes are expected to be 58 and 61 million tonnes in 2023 and 2024, respectively.

“Considering the major losses of recent years, the $25.7 billion net profit expected in 2024 is a tribute to aviation’s resilience. People love to travel and that has helped airlines to come roaring back to pre-pandemic levels of connectivity. The speed of the recovery has been extraordinary; yet it also appears that the pandemic has cost aviation about four years of growth. From 2024 the outlook indicates that we can expect more normal growth patterns for both passenger and cargo,” said Willie Walsh, IATA’s Director General.

“Industry profits must be put into proper perspective. While the recovery is impressive, a net profit margin of 2.7% is far below what investors in almost any other industry would accept. Of course, many airlines are doing better than that average, and many are struggling. But there is something to be learned from the fact that, on average airlines will retain just $5.45 for every passenger carried. That’s about enough to buy a basic ‘grande latte’ at a London Starbucks. But it is far too little to build a future that is resilient to shocks for a critical global industry on which 3.5% of GDP depends and from which 3.05 million people directly earn their livelihoods. Airlines will always compete ferociously for their customers, but they remain far too burdened by onerous regulation, fragmentation, high infrastructure costs and a supply chain populated with oligopolies,” said Walsh.

Outlook drivers

Overall revenues in 2024 are expected to rise faster than expenses ( 7.6% vs. 6.9%), strengthening profitability. Although operating profits are expected to increase 21.1% ($40.7 billion in 2023 to $49.3 billion in 2024 ), net profit margins increased at less than half the pace ( 10% ) largely due to increased interest rates expected in 2024.

Industry revenues are expected to reach an historic high of $964 billion in 2024. An inventory of 40.1 million flights is expected to be available in 2024, exceeding the 2019 level of 38.9 million and up from the 36.8 million flights expected in 2023. 

Passenger revenues are expected to reach $717 billion in 2024, up 12% from $642 billion in 2023. Revenue passenger kilometers (RPKs) growth is expected to be 9.8% year on year. Although that is more than double the pre-pandemic growth trend, 2024 is expected to mark the end of the dramatic year-on-year increases that have been characteristic of the recovery in 2021-2023. 

The high demand for travel coupled with limited capacity due to persistent supply chain issues continues to create supply and demand conditions supporting yield growth. Passenger yields in 2024 are expected to improve 1.8% compared with 2023. 

Reflecting the tight supply and demand conditions, efficiency levels are high with the load factor expected to be 82.6% in 2024, slightly better than 2023 ( 82% ) and the same as in 2019. 

IATA’s November 2023 passenger polling data supports the optimistic outlook.

• A third of travelers polled say they are traveling more than they did pre-pandemic. Some 49% indicate that their travel habits are now similar to pre-pandemic. Only 18% said that they were traveling less.
• Looking ahead, 44% say that they will travel more in the next 12 months than in the previous 12 months. Only 7% say they will travel less and 48% expect to maintain similar levels of travel in the coming 12 months as in the previous 12 months.

Cargo revenues are expected to fall to $111 billion in 2024. That is down sharply from an extraordinary peak of $210 billion in 2021, but it is above 2019 revenues which were $101 billion. Yields will continue to be negatively impacted by the continued growth of belly capacity (related to strong growth on the passenger side of the business) while international trade stagnates. Yields are expected to further correct towards pre-pandemic levels with a -32.2% decline in 2023 followed by a -20.9% decline expected in 2024. They will remain high by historical standards, however. Note that yield progression has been extraordinary in these last years (-8.2% in 2019, +54.7% in 2020, +25.9% in 2021, +7% in 2022, -32.2% in 2023 ).

Expenses are expected to grow to $914 billion in 2024 (+6.9% on 2023 and +15.1% on 2019 ).

The fuel price is expected to average $113.8/barrel (jet) in 2024 translating into total fuel bill of $281 billion, accounting for 31% of all operating costs. Airlines are expected to consume 99 billion gallons of fuel in 2024.

High crude oil prices are expected to continue to be further exaggerated for airlines as the crack spread (premium paid to refine crude oil into jet fuel) is expected to average 30% in 2024.

Industry CO2 emissions in 2024 are expected to be 939 million tonnes from the consumption of 99 billion gallons of fuel. 

The aviation industry will increase its use of Sustainable Aviation Fuels (SAF) and carbon credits to reduce its carbon footprint. We estimate that SAF production could rise to 0.53% of airlines’ total fuel consumption in 2024, adding USD 2.4 billion to next year’s fuel bill. In addition, the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is a global market-based carbon offsetting mechanism designed to stabilize international aviation emissions. The CORSIA-related costs are estimated at $1 billion in 2024. 

Non-fuel expenses have been controlled relatively well by airlines despite inflationary pressures. With fixed costs being distributed over a larger scale of activity as the industry recovered from the pandemic, non-fuel unit costs are falling in line with pre-pandemic level. In 2024 we expect non-fuel unit costs of 39.2 cents per available tonne kilometer (ATK) in 2024 which is 1.6% above 2023 levels and matches 2019 levels. Total non-fuel costs are expected to reach $633 billion in 2024.

Industry profitability is fragile and could be affected (positively or negatively) by many factors:

• Global Economic developments: Easing inflation, low unemployment rates, and strong demand for travel are all positive developments. Nonetheless, economic strains could arise. In China, for example, slow growth, high youth unemployment and disarray in property markets if not managed properly, could impact global business cycles. Similarly, should tolerance of high interest rates weaken, and unemployment rise significantly, the strong consumer demand that has supported the recovery could weaken.
• War: The operational impacts of the Ukraine war and the Israel-Hamas war have been largely limited to re-routings due to airspace closures. On the cost side, the conflicts have pushed up oil prices which is impacting airlines globally. An unexpected peace in either or both cases would bring benefits to the industry, but any escalation could produce a radically different global economic scenario to which aviation would not be immune.
• Supply Chains: Supply chain issues continue to impact global trade and business. Airlines have been directly impacted by unforeseen maintenance issues on some aircraft/engine types as well as delays in the delivery of aircraft parts and of aircraft, limiting capacity expansion and fleet renewal.
• Regulatory Risk: On the regulatory front, airlines could face rising costs of compliance, and additional costs pertaining to passenger rights regimes, regional environment initiatives, and accessibility requirements. 

Airline profitability for 2023 performed better than expected in IATA’s June outlook. Revenues for 2023 are now expected to reach $896 billion ($93 billion higher than expected). Expenses also grew to $855 billion ($74 billion higher than the previous forecast). That translated into a $23.3 billion industry wide net profit. Although that is significantly above the $9.8 billion forecast in June, the additional $13.5 billion profit is equal to just 1.4% of revenue. The net profit margin is just 2.6% meaning that airlines will have earned on average $5.44 per passenger carried in 2023.

The improvement was entirely driven by the passenger business that saw revenues increase compared with the previous forecast by $96 billion, to $642 billion. Cargo revenues in 2023 were $134.7 billion, which underperformed the $142.3 billion expected in June.

The Traveler’s Viewpoint

Air travel continues to deliver value to consumers. A recent public opinion poll ( 14 countries, 6,500 respondents who have taken at least one trip in the last year) revealed that 97% of travellers expressed satisfaction with their travel. Moreover, 88% agreed that air travel makes their lives better and 80% agreed that air travel is good value for money.

Consumers can expect airfares to continue to track rising costs, particularly oil. IATA data, however, show that competition continues to drive price benefits for consumers. The average real return air fare in 2023 is expected to be $254 which is 20% lower than the average fare of $315 in 2019 (measured in constant 2018 dollars).

Passengers are counting on a safe, sustainable, efficient and profitable airline industry. IATA public opinion polling demonstrated the important role that travelers see the airline industry playing:

• 89% agreed that air travel is a necessity for modern life
• 89% agreed that air connectivity is critical to the economy
• 88% said that air travel has a positive impact on societies
• 83% said that the global air transport network is a key contributor to the UN Sustainable Development Goals (SDGs)

Aviation remains committed to its goal of achieving net zero emissions by 2050. Travelers are expressing high levels of confidence in this commitment, with 84% believing it is the right goal, 79% saying that we will be able to fly sustainably, and 78% agreeing that aviation leaders are taking the climate challenge seriously.

Credit | shutterstock_2156345751

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Airbus and Boeing's problems spell bad news for the cost of your summer vacation

• IATA predicted this year will beat the pre-pandemic record for air travel.
• But both Boeing and Airbus jets are having problems that are reducing capacity.
• Some airlines are already warning that prices will go up.

You can expect to pay more for plane tickets this summer, as airline capacity struggles to keep up with demand.

In December 2023, the International Air Travel Association predicted 2024 would break records for the most air passengers ever . It expects 4.7 billion people to travel this year — 200 million more than the pre-pandemic high set in 2019.

But airlines are warning they'll have fewer seats available than they initially thought, as both Boeing and Airbus are dealing with problems.

IATA had predicted a 9% growth in capacity. But passenger airlines will see 19% fewer aircraft than expected this year, Martha Neubauer, a senior associate at AeroDynamic Advisor, told Reuters .

Southwest Airlines has paused hiring because it now expects to receive 46 new Boeing 737 Max jets, down from 79.

Related stories

And the CEO of Europe's biggest budget airline, Ryanair, warned its ticket prices could go up 10% due to Boeing delivery delays.

Additionally, United has asked pilots to take an unpaid leave in May to help mitigate delayed deliveries of Boeing planes.

Boeing has had a bad year as the Alaska Airlines blowout in January sparked increased scrutiny from regulators. The Federal Aviation Administration has limited how many 737 Max jets it can manufacture.

And since CEO Dave Calhoun announced he would resign at the end of the year, Boeing's new chairman is trying to win back customers' trust.

While Boeing has been under the spotlight, Airbus also has some problems of its own.

A flaw in the Pratt & Whitney engines used on Airbus A320neos will ground 650 jets for inspections in the first half of this year.

IATA also predicted that airline profits would be up 10% from last year. But the trade group's director general, Willie Walsh, said the average airline only makes $5.45 for every passenger.

"That's about enough to buy a basic grande latte at a London Starbucks," he added. "But it is far too little to build a future that is resilient to shocks for a critical global industry."

Watch: Thousands of bags pile up at US airports after flight cancellations

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Delta expects summer travel demand to produce record second-quarter revenue

By Rajesh Kumar Singh and Deborah Mary Sophia

CHICAGO (Reuters) -Delta Air Lines said on Wednesday it expects the highest second-quarter revenue in its history thanks to buoyant demand for spring and summer travel and what it called the "most constructive backdrop" for the airline industry.

The Atlanta-based carrier forecast a strong profit in the current quarter after reporting better-than-expected earnings in the first quarter.

CEO Ed Bastian said Delta's core consumers are in a healthy position and travel remains a top priority for them. He also highlighted an acceleration in corporate travel spending as well as the efforts by airlines to protect their pricing power in key markets.

"This may be the most constructive backdrop that I've seen in my airline career," Bastian told analysts on a conference call.

Delta shares initially gained 4% before turning negative on Wednesday after hot inflation data that pressured the broader market. The shares, which have gained about 17% so far this year, were down 0.3% at $47.16 in afternoon trading.

The International Air Transport Association IATA expects 4.7 billion people to travel in 2024, compared with 4.5 billion in 2019. In the United States, passenger traffic is estimated to reach an all-time high this year, according to trade group Airlines for America (A4A).

Airline executives say consumers are cutting spending on goods in favor of experiences after the pandemic. Hybrid work arrangements are also allowing Americans to travel more, leading to a surge in spending on air travel, according to A4A.

Demand is particularly strong for premium travel, benefiting carriers like Delta, which is trying to attract travelers who are willing to pay for something other than just a seat.

"Generational shifts and evolving consumer preferences are driving secular growth in premium experiences," Bastian said.

Consumer demand is booming at a time when airlines are struggling with aircraft shortages, constraining their ability to supply more seats during peak travel periods, translating into stronger pricing.

Delta expects unit revenue - a proxy for pricing power - to be flat compared with last year in all geographies except Latin America.

It also reported an improvement in the U.S. market as its domestic unit revenue turned positive in the March quarter, with an improvement of 7 percentage points from the previous quarter.

"Despite all of the aircraft issues in the industry, demand is still healthy and Delta's guidance is reflecting that," said Christopher Raite, senior analyst at Third Bridge.

While Delta's operations are not impacted by Boeing's safety crisis, the airline said industrywide supply-chain constraints have forced it to keep flying older, less fuel-efficient jets and spend more on repairs. The company did not retire any aircraft in the last two years.

It forecast an adjusted profit of $2.20 to $2.50 per share in the quarter through June, compared with analysts' expectation of $2.23 per share, according to LSEG data. It expects to post an operating margin of 14% to 15%, with a 5% to 7% year-on-year increase in second-quarter revenue.

Adjusted profit for the first quarter was 45 cents a share, compared with analysts' expectations of 36 cents per share.

(Reporting by Rajesh Kumar Singh in ChicagoAdditional reporting by Deborah Sophia in BengaluruEditing by Pooja Desai, Chizu Nomiyama and Matthew Lewis)