Global Passenger Demand Grows in March, but with Mixed Signals in Key Regions
The International Air Transport Association (IATA) released its March 2025 global passenger traffic data, revealing overall growth but with notable regional variations and a concerning decline in load factors.
3.3% Global Increase in Passenger Demand
In March, total passenger demand, measured in revenue passenger kilometers (RPK), rose by 3.3% compared to the same month in 2024. However, this expansion was outpaced by capacity growth, which increased by 5.3% as measured in available seat kilometers (ASK). As a result, the average load factor dropped to 80.7%, a decline of 1.6 percentage points year-on-year.
International Outlook: Moderate Growth and Widespread Decline in Load Factors
International demand grew by 4.9% compared to March 2024, though this was lower than the 5.9% reported in February and the 12.5% recorded in January, reflecting a gradual normalization post-COVID. International capacity rose by 7.0%, while the load factor fell by 1.7 percentage points to 79.9%.
Asia-Pacific Leads Growth
Asia-Pacific airlines led the growth with a robust 9.9% increase in international demand. Capacity rose by 11.6%, and the load factor stood at 84.1%, though it declined by 1.3 percentage points compared to March 2024.
Europe and Latin America Show Progress
In Europe, demand grew by 4.9%, with capacity up 6.9% and a load factor of 78.2%, down 1.5 percentage points from the previous year.
Latin American airlines reported a 7.7% rise in international demand and a 12.1% expansion in capacity. However, the load factor dropped by 3.3 percentage points to 80.9%.
Middle East and North America in Decline
The Middle East market saw a 1.0% drop in demand, despite a 2.8% increase in capacity. The load factor fell significantly to 74.6% (-2.9 percentage points), partly affected by the timing of Ramadan.
In North America, international demand decreased by 0.1%, a slight improvement from the -1.5% recorded in February. Capacity grew by 2.0%, while the load factor declined to 83.0%, down 1.8 percentage points.
Africa Maintains Modest Growth
African airlines reported a 3.3% increase in demand and a 3.5% rise in capacity, with a marginal 0.2 percentage point drop in the load factor, which stood at 70.1%.
Domestic Markets: Sluggish Growth and Declines in Major Economies
Global domestic traffic saw a modest 0.9% year-on-year increase in March, impacted by declines in the United States (-1.7%) and Australia (-1.2%). In contrast, Brazil and India reported strong growth of 8.9% and 11.0%, respectively. Domestic capacity rose by 2.5%, leading to a 1.3 percentage point drop in the load factor, which reached 82.0%.
Outlook and Challenges: Infrastructure and Supply Chain Under Pressure
Willie Walsh, IATA’s Director General, noted that the 3.3% growth represents an improvement over February’s 2.7% but warned that capacity outpacing demand has led to lower load factors. “There is much speculation about the impact of tariffs and other economic factors on travel. While the decline in North America warrants caution, March’s data still reflects a global growth trend,” he stated.
Walsh also emphasized the urgency of addressing structural challenges, such as supply chain bottlenecks and the need for sufficient airport and air traffic management capacity to accommodate the ongoing rise in passenger numbers.
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Un apasionado por la aviación, Fundador y CEO de Aviación al Día.