Global air passenger demand grows 3.3% year-on-year in March: IATA

Global air passenger demand grew by 3.3% year-on-year in March, a slight strengthening from the 2.7% growth reported for February this year, according to the International Air Transport Association (IATA).

A capacity expansion of 5.3%, however, outpaced the demand expansion leading to a load factor decline from record highs to 80.7% systemwide, IATA’s just released data for March revealed.

Total demand, measured in revenue passenger kilometres (RPK), was up 3.3% compared to March last year. Total capacity, measured in available seat kilometres (ASK), was up 5.3% year-on-year. The March load factor was 80.7% (-1.6 ppt compared to March 2024).

International demand rose 4.9% compared to March 2024. Capacity was up 7.0% year-on-year, and the load factor was 79.9% (-1.7 ppt compared to March 2024).

Domestic air travel posted a marginal 0.9% gain, weighed down by declines in the US and Australian markets. Brazil and India reported the strongest growth at 8.9% and 11.0%, respectively. Meanwhile, Australia (-1.2%) and the US (-1.7%) reported declines. The load factor fell -1.3 ppt as domestic capacity expanded 2.5%.

Middle Eastern carriers saw a -1% year-on-year decline in demand. Capacity increased 2.8% year-on-year, and the load factor was 74.6% (-2.9 ppt compared to March 2024).

The decline in demand is likely related to the timing of Ramadan, which impacts travel patterns, IATA noted.

IATA’s Director General Willie Walsh said, “Passenger demand grew by 3.3% year-on-year in March, a slight strengthening from the 2.7% growth reported for February. A capacity expansion of 5.3%, however, outpaced the demand expansion leading to a load factor decline from record highs to 80.7% systemwide.

“There remains a lot of speculation around the potential impacts of tariffs and other economic headwinds on travel. While the small decline in demand in North America needs to be watched carefully, March numbers continued to show a global pattern of growth for air travel.

“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.”