It was a very successful year for global air traffic in 2024. Growth hit 9.6% and new data from ACI and ICAO shows that passenger numbers in all regions surpassed pre-pandemic 2019 volumes for the first time. In 2023, only Latin America/the Caribbean (LatAm) managed this feat.

In this two-part analysis, we examine the underlying drivers in each region, beginning with North America and LatAm, and finishing off next Wednesday with Asia Pacific, Europe, and the Middle East in Part 2.

While passenger numbers are now above 2019 levels in all regions, North America was the clear winner comparing 2019 with 2024 in absolute terms. Despite various capacity issues such as delayed deliveries from Boeing and engine overhauls for P&W engines on the A320, the region recorded an estimated 7.4% growth in 2024 (versus 2019), adding 140 million travelers.

The two other biggest regions – Asia Pacific and Europe – surpassed 2019 at more modest levels (below 2%). Among smaller markets, the best growth came from LatAm at 11.6% above 2019, and the Middle East, recording passenger numbers nearly 10% higher to reach 450 million (see chart below).

North America: Fueled by U.S. Growth

The United States has a large, well-developed domestic air traffic market, which rebounded quickly post-pandemic. The very strong performance of the U.S. economy, high employment rates, and private consumption have been fundamental to the continued demand for air travel.

Initially, airline capacity was redirected from international to domestic routes, and pent-up demand was supported by low-cost airline expansion. This led to a full recovery in 2023. Thereafter, international travel spurred growth, particularly outbound, helped by the strong U.S. dollar. Conversely, this made international travel more expensive for foreigners. The largest growth markets from the U.S. have been Colombia (+44% vs 2019), Dominican Republic (+37.5%), Costa Rica (+31%), Mexico (+30%), and Italy (+25%).

To facilitate this growth, U.S. airlines have managed to increase their overall fleet size by 13% since 2019, replacing smaller regional aircraft with larger A320s and B737s to further lift capacity.

Latin America and the Caribbean

This was the first region to fully recover from the pandemic (in 2023, despite major airline reorganizations such as LATAM and Avianca. Countries such as Peru, Colombia, and Chile have strongly contributed to the growth.

Several factors have been crucial in the success of this region led by tourism growth. International tourism from the U.S. has grown significantly, partly due to a favorable dollar exchange rate, and partly due to efforts from governments to promote international visitor numbers.

Domestic tourism has also been facilitated by the continued growth of low-cost carriers while initial incentives by various governments have also been influential. LCCs such as JetSMART, SKY Airline, and GOL expanded aggressively, making air travel more affordable for a continuously larger middle class in the region.

Rising incomes and employment recovery have encouraged more people to fly increasing the number of first-time flyers. This has helped domestic markets— which were previously not well developed—to see enormous growth. Unlike other regions, many governments also reduced aviation taxes, improved regulations, and invested in airport expansions to support the industry’s recovery.

Several major airlines (for example LATAM, Avianca, Aeroméxico) emerged from bankruptcy stronger and more efficient, with leaner operations and expanded fleets. LCCs did not have a major footprint outside Brazil and Mexico pre-pandemic but today, the low-cost market share is catching up to the levels seen in more developed regions.

[Part 2 of this article will be published on February 26.]