IATA: total global passenger demand up by over three percent in March

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The International Air Transport Association (IATA) has issued  its report on March 2025 global passenger demand for air travel.

It was noted that total demand, as measured in revenue passenger kilometers (RPK), was up 3.3 percent compared to March 2024. 

Total capacity measured in available seat kilometers (ASK), on the other hand, increased by 5.3 percent year-on-year. 

Load factor hit 80.7 percent, a 1.6 ppt drop from March 2024.

International demand rose 4.9 percent compared to March 2024, while capacity was up 7 percent year-on-year, and the load factor was 79.9 percent.

With regard to domestic demand, the total was up by 0.9 percent compared to March of last year, and capacity increased by 2.5 percent year-on-year; load factor was at 82 percent.

IATA director-general Willie Walsh pointed out: “A capacity expansion of 5.3%, however, outpaced the demand expansion leading to a load factor decline from record highs to 80.7% system-wide. 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.”

Market performance in March 2025

International markets

International RPK growth slowed to 4.9 percent in March year-on-year from the 5.9 percent reported for February and from the 12.5 percent reported in January. 

This slowdown since January reflects in large part the final normalization of year-on-year demand comparisons post-COVID. 

Asia-Pacific was the strongest performer among regions with 9.9 percent growth. 

On the other hand, load factors dropped in every region, reflecting  a -1.7 ppt overall decline. 

Performance by region 

• Asia-Pacific airlines reported a 9.9% year-on-year increase in demand. Capacity increased 11.6% year-on-year, and the load factor was 84.1% (-1.3 ppt compared to March 2024).
• European carriers had a 4.9% year-on-year increase in demand. Capacity increased 6.9% year-on-year, and the load factor was 78.2% (-1.5 ppt compared to March 2024).
• Middle Eastern carriers saw a -1.0% 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.
• North American carriers saw a -0.1% year-on-year fall in demand. Capacity increased 2.0% year-on-year, and the load factor was 83.0% (-1.8 ppt compared to March 2024). While demand had a second consecutive month of year-on-year contraction, it is important to note that this is an improvement on the -1.5% decline reported for February.
• Latin American airlines saw a 7.7% year-on-year increase in demand. Capacity climbed 12.1% year-on-year. The load factor was 80.9% (-3.3 ppt compared to March 2024).
• African airlines saw a 3.3% year-on-year increase in demand. Capacity was up 3.5% year-on-year. The load factor was 70.1% (-0.2 ppt compared to March 2024).

Domestic markets

Domestic air travel posted a marginal gain of 0.9 percent, weighed down by declines in the US and Australian markets. 

Brazil and India reported the strongest growth at 8.9 percent and 11 percent respectively. 

Meanwhile, both Australia and the US reported slight declines, whilst the overall load factor fell -1.3 ppt as domestic capacity expanded 2.5 percent.

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