Global passenger demand in March grew by 3.3%

Passenger demand grew 3.3% year-over-year in March, a slight strengthening from the 2.7% growth recorded in February. However, capacity expansion of 5.3% outpaced demand expansion, resulting in a decline in load factor from record highs to 80.7% systemwide. Speculation remains rife about the potential impact of tariffs and other economic headwinds on travel. While the slight decline in demand in North America needs to be closely monitored, the March figures continued to show a global pattern of growth in air travel. This means that the challenges associated with accommodating more people who need to travel—in particular, alleviating supply chain issues and ensuring sufficient airport and air traffic management capacity—remain urgent, stated Willie Walsh, IATA's Director General.

Regional Breakdown: International Passenger Markets

International RPK year-over-year growth slowed to 4.9% in March, down from 5.9% in February and 12.5% ​​in January. This slowdown since January largely reflects the normalization of year-over-year demand comparisons following COVID-19. Asia-Pacific was the best-performing region, with growth of 9.9%. Load factor decreased across all regions, representing an overall decline of -1.7 percentage points.  

Asia-Pacific airlines reported a 9.9% year-over-year increase in demand. Capacity increased by 11.6% year-over-year, and load factor stood at 84.1% (-1.3 percentage points compared to March 2024).

European airlines recorded a 4.9% year-on-year increase in demand. Capacity increased by 6.9% year-on-year, and the load factor stood at 78.2% (-1.5 percentage points compared to March 2024).

Middle Eastern airlines experienced a year-over-year decline in demand of -1.0%. Capacity increased by 2.8% year-over-year, and the load factor stood at 74.6% (-2.9 percentage points compared to March 2024). The drop in demand is likely due to the celebration of Ramadan, which is affecting travel patterns.

North American airlines experienced a -0.1% year-over-year decline in demand. Capacity increased by 2.0% year-over-year, and load factor stood at 83.0% (-1.8 percentage points compared to March 2024). While demand recorded its second consecutive month of year-over-year contraction, it's worth noting that this represents an improvement from the -1.5% decline recorded in February.

Latin American airlines experienced a 7.7% year-over-year increase in demand. Capacity increased by 12.1% year-over-year. Load factor stood at 80.9% (-3.3 percentage points compared to March 2024).

African airlines experienced a 3.3% year-on-year increase in demand. Capacity increased by 3.5% year-on-year. Load factor stood at 70.1% (-0.2 percentage points compared to March 2024).

Domestic Passenger Markets
Domestic air travel posted a slight increase of 0.9%, weighed down by declines in the US and Australian markets. Brazil and India recorded the strongest growth, with 8.9% and 11.0% respectively. Meanwhile, Australia (-1.2%) and the US (-1.7%) recorded declines. Load factor fell 1.3 percentage points as domestic capacity expanded by 2.5%.

Source: IATA.