The International Air Transport Association (IATA) has announced a 3.3% year-on-year increase in global air passenger demand for March 2025. This modest growth marks an improvement from the 2.7% rise recorded in February. However, the report also reveals that available passenger capacity surged by 5.3%, resulting in a global load factor decline to 80.7%, a 1.6 percentage point drop compared to the same period last year.

Willie Walsh, IATA’s Director General, addressed the shift, noting the importance of monitoring the widening gap between demand and capacity. “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,” he said.

Regional Trends

Among the global regions, Asia-Pacific carriers led international traffic growth with a 9.9% increase in revenue passenger kilometers (RPK). Latin America followed with a 7.7% rise, while European carriers saw a steady 4.9% growth. In contrast, international RPKs declined in the Middle East and North America by 1.0% and 0.1%, respectively. IATA suggested that the Middle East’s performance may have been influenced by Ramadan.

Domestic air travel showed slower progress with a 0.9% overall increase. The United States saw a 1.7% decline in domestic demand, and Australia reported a 1.2% drop. However, this was offset by strong performance in emerging markets. India experienced an 11.0% rise in domestic travel, Brazil posted an 8.9% increase, and Japan followed closely with an 8.0% gain. Notably, India recorded a domestic load factor of 83.3%, highlighting strong local demand.

Load Factor Overview

Load factors, a key efficiency metric, dropped across most regions. Asia-Pacific had the highest international load factor at 84.1%, while the Middle East had the lowest at 74.6%. For domestic markets, Japan stood out with an 84.4% load factor, whereas Africa’s international routes reported the lowest at just 71.5%.

IATA attributed the slowdown in international RPK growth—from 12.5% in January to 4.9% in March—to the diminishing effects of post-COVID recovery comparisons. While the aviation sector continues to show resilience, economic uncertainties and ongoing infrastructure challenges remain areas of concern.

Despite these headwinds, the long-term outlook for the industry remains optimistic. IATA stressed the need for continued efforts in resolving air traffic bottlenecks and improving infrastructure to meet the rising demand for global air travel.