Passenger demand growth reaches 5% in May

According to IATA, total demand, measured in passenger kilometers (RPKs), increased by 5.0% compared to May 2024. Total capacity, measured in available seat kilometers (ASKs), also increased by 5.0% year-over-year. Load factor in May was 83.4% (-0.1 percentage points compared to May 2024).

International demand increased by 6.7% compared to May 2024. Capacity increased by 6.4% year-on-year, and the load factor stood at 83.2% (+0.2 percentage points compared to May 2024). This is a record load factor for international flights for May.

Domestic demand increased by 2.1% compared to May 2024. Capacity increased by 2.8% year-on-year. Load factor stood at 83.7% (-0.5 percentage points compared to May 2024).

Air travel demand growth was uneven in May. Globally, the industry posted 5% growth, led by Asia-Pacific at 9.4%. The exception was North America, which recorded a 0.5% decline, led by a 1.7% drop in the US domestic market. The severe disruptions in the Middle East at the end of June serve as a reminder that geopolitical instability remains a challenge in some regions, as airlines maintain safe operations with minimal disruption to passengers. The impact of such instability on oil prices, which remained low throughout May, is also a critical factor to monitor. Notably, consumer confidence appears to be strong, with early bookings for the peak northern summer travel season providing good reason for optimism, said Willie Walsh, IATA Director General.

Regional Breakdown: International Passenger Markets

International RPK growth reached 6.7% year-over-year in May, with growth across all regions, but a mixed picture for load factor, which increased by just 0.2 percentage points. Traffic expansion on most key international routes to the Americas slowed in May, with the exception of Transatlantic, which posted a modest year-over-year increase of 2.5%.

Asia-Pacific airlines reported a 13.3% year-over-year increase in demand. Capacity increased by 10.6% year-over-year, and load factor stood at 84.0% (up 2.0 percentage points compared to May 2024).

European airlines recorded a 4.1% year-on-year increase in demand. Capacity increased by 4.8% year-on-year, and the load factor stood at 84.0% (-0.6 percentage points compared to May 2024).

North American airlines experienced a 1.4% year-over-year increase in demand. Capacity increased 1.7% year-over-year, and load factor stood at 83.8% (-0.3 percentage points compared to May 2024).

Middle Eastern airlines experienced a 6.2% year-on-year increase in demand. Capacity increased by 6.3% year-on-year, and load factor stood at 80.9% (-0.1 percentage points compared to May 2024).

Latin American airlines experienced a year-over-year increase in demand of 8.8%. Capacity increased by 11.0% year-over-year. Load factor stood at 83.6% (-1.7 percentage points compared to May 2024).

African airlines experienced a 9.5% year-over-year increase in demand. Capacity increased by 6.2% year-over-year. Load factor was 74.9% (+2.2 percentage points compared to May 2024). Africa-Asia is the fastest-growing international corridor, expanding by 15.9%.

National passenger markets

Domestic RPK increased 2.1% compared to May 2024, and load factor decreased 0.5 percentage points to 83.7%, thanks to a 2.8% capacity expansion. All regions showed growth except the United States, due to the economic slowdown and reduced government travel. Domestic travel growth in China accelerated, as it has every month since March. Also noteworthy was Brazil's strong growth, thanks to uninterrupted expansion since January 2023.

Source: IATA.