Global air passenger demand rose by 3.3 percent in March compared to the same month in 2024, slightly up from the 2.7 percent growth recorded in February, according to the International Air Transport Association (IATA).
However, capacity increased by 5.3 percent year-on-year, outpacing demand and leading to a decline in the global load factor (the percentage of available seats filled by paying passengers) to 80.7 percent – down from record highs. IATA noted that while air travel continues to recover steadily, a mismatch between supply and demand remains a key challenge.
“There remains a lot of speculation around the potential impacts of tariffs and other economic headwinds on travel,” said IATA Director General Willie Walsh.
“The small decline in demand in North America needs to be watched carefully,” he added.
North American carriers recorded a 0.1 percent year-on-year drop in demand. Capacity in the region rose by 2.0 percent, and the load factor stood at 83.0 percent, down 1.8 percentage points from March 2024. Although demand posted a second consecutive monthly contraction, IATA highlighted that the March result was an improvement over the 1.5 percent decline seen in February.
International passenger demand
Despite regional discrepancies, global data continues to reflect growth in international air travel. March international passenger demand increased by 4.9 percent year-on-year, while capacity rose by 7.0 percent. The international load factor fell to 79.9 percent, down 1.7 percentage points compared to March 2024.
International Revenue Passenger Kilometers (RPKs), a key measure of passenger demand, grew at a slower pace compared to earlier months – 4.9 percent in March, down from 5.9 percent in February and 12.5 percent in January. According to IATA, this decline largely reflects the normalization of post-pandemic year-on-year comparisons.
Asia-Pacific carriers led international growth with a 9.9 percent increase in demand, followed by Latin American airlines at 7.7 percent and European carriers at 4.9 percent. Load factors declined across all regions, contributing to the overall 1.7 percentage point drop.
“That means the challenges associated with accommodating more people who need to travel—specifically alleviating supply chain problems and ensuring sufficient airport and air traffic management capacity—remain urgent,” Walsh added.
Domestic air travel: Mixed performance
Domestic markets reported more modest gains, with passenger demand up 0.9 percent year-on-year. However, capacity rose by 2.5 percent, resulting in a load factor of 82.0 percent – down 1.3 percentage points compared to March 2024.
Growth was uneven across markets. Brazil and India posted the strongest increases in domestic demand at 8.9 percent and 11.0 percent, respectively. In contrast, Australia and the United States saw declines of 1.2 percent and 1.7 percent.
According to industry insiders, IATA’s March data reflects a global industry still in positive territory, but one that is contending with regional slowdowns, rising capacity, and infrastructure constraints as demand continues to normalize.
Follow GTP Headlines on Google News to keep up to date with all the latest on tourism and travel in Greece.
Source link
