Global Air Travel Grows in March, but Capacity Outpaces Demand

Global passenger demand rose by 3.3% in March 2025, a modest increase from February’s 2.7% growth, according to the International Air Transport Association (IATA).

Yet, the 5.3% rise in capacity outstripped this demand, reducing the overall load factor to 80.7%. IATA’s Director General, Willie Walsh, emphasized the need to address persistent challenges like airport capacity, air traffic control limitations, and supply chain constraints, especially with global travel demand steadily rising.

In international markets, demand growth slowed to 4.9% year-over-year, down from 5.9% in February and 12.5% in January, as post-pandemic normalization continues. The Asia-Pacific region led globally with a 9.9% surge in demand, although its load factor dipped slightly to 84.1%. Across the board, all regions saw drops in load factors, with the average international decline at 1.7 percentage points.

European airlines recorded a 4.9% increase in demand, with capacity up 6.9% and a load factor of 78.2%. The Middle East experienced a 1.0% drop in demand, likely influenced by Ramadan travel patterns, while North America saw a marginal -0.1% contraction. Despite two consecutive months of decline, this marked an improvement from February’s -1.5%. Meanwhile, Latin America and Africa posted strong growth at 7.7% and 3.3%, respectively.

The domestic air travel sector posted a modest 0.9% growth, impacted by declining demand in Australia (-1.2%) and the United States (-1.7%). On the positive side, India (11.0%) and Brazil (8.9%) delivered robust domestic growth. Still, the 2.5% expansion in domestic capacity outweighed demand, pushing the domestic load factor down by 1.3 percentage points.

Looking ahead, IATA stresses the importance of enhancing operational capacity to keep pace with growing demand. While international and domestic air travel continue their recovery trajectory, factors like economic uncertainty, tariffs, and logistical bottlenecks could temper growth unless effectively addressed.