IATA is reporting that passenger demand in March grew by 2.1%, but its data reveals ‘sharp regional differences.’
The results show that:
- Total demand, measured in revenue passenger kilometers (RPK), was up 2.1% compared to March 2025. Total capacity, measured in available seat kilometers (ASK), decreased 1.7% year-on-year. The load factor was 83.6% (+3.1 ppt compared to March 2025).
- International demand fell -0.6% compared to March 2025. Capacity was down -6.2% year-on-year, and the load factor was 84.1% (+4.7 ppt compared to March 2025). The overall decline in international traffic was led by a -60.8% fall in traffic by carriers in the Middle East.
- Domestic demand increased 6.5% compared to March 2025. Capacity increased 5.6% year-on-year. The load factor was 83.0% (+0.7 ppt compared to March 2025).
Willie Walsh, IATA’s Director General, observed that: “Demand for air travel continued to grow in March despite disruptions in the Middle East. The nearly 61% decline in international traffic by carriers in the Middle East did, however, restrain global growth to 2.1%. Outside of the Middle East demand grew by 8%.”
Walsh continued: “Everybody’s watching what’s happening with jet fuel — both supply and pricing. On the supply side, over the next months we could see shortages in parts of the world with high dependence on supplies from the Gulf, especially Asia and Europe. And the extraordinarily high cost of jet fuel is increasingly being reflected in ticket prices.”
IATA’s Director General continued: “While this has not impacted March traffic or forward bookings to date, it remains to be seen at what point high prices could start to shift passenger behaviour. So far, the summer is shaping up to be a normally busy time for travel.”
Said Walsh: “That’s positive news, but airline resilience is being tested and stabilizing the supply and price of fuel is crucial. In the meantime, it’s important for regulators to be prepared to grant airlines some flexibility on slots considering the extraordinary circumstances of airspace capacity restrictions and potential fuel rationing.”
Tags: IATA, Willie Walsh
