Middle Eastern airlines posted a 1 pc decline in demand due to Ramadan: IATA
Based on the data of revenue passenger kilometres (RPK), the International Air Transport Association (IATA), a grouping of leading airlines of the world, has reported a 3.3 pc increase in global air passenger demand in March 2025 compared to the same month in 2024. The capacity increased by 5.3 pc, resulting in a system-wide load factor of 80.7 pc, recording a decline of 1.6 pc points.
In a press statement, IATA says international demand rose by 4.9 pc in March compared to the same month in 2024, while capacity increased by 7.0 pc. However, the load factor declined to 79.9 pc. Domestic demand grew marginally by 0.9 pc, with capacity up by 2.5 pc. The domestic load factor stood at 82.0 pc, a decrease of 1.3 percentage points.
It adds that, in terms of demand, Asia-Pacific carriers recorded the highest growth at 9.9 pc, with capacity rising by 11.6 pc. The load factor stood at 84.1 pc, a decline of 1.3 percentage points. Additionally, European airlines reported a 4.9 pc increase in demand, with capacity up by 6.9 pc. The load factor for Europe was 78.2 pc, a decline of 1.5 percentage points.
Attributing the fall partly to Ramadan, IATA reports that Middle Eastern airlines posted a 1 pc decline in demand, with capacity up by 2.8 pc. The load factor fell to 74.6 pc. Additionally, North American carriers recorded a 0.1 pc decrease in demand, an improvement from the 1.5 pc decline reported in February. Its capacity increased by 2.0 pc, while the load factor stood at 83.0 pc, recording a 1.8 pc decrease.
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According to the press statement, the airline association reports that despite Brazil and India showing domestic growth of 8.9 pc and 11.0 pc, respectively, the overall domestic market experienced limited growth, rising by only 0.9 pc. This was due to declines in the United States and Australia, which posted reductions of 1.7 pc and 1.2 pc, respectively. The domestic load factor fell to 82.0 pc, despite capacity expansion.
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According to the press statement, IATA reports that Japan recorded an 8 pc increase in domestic RPK, while China saw a 1.7 pc rise. Japan had the highest domestic load factor, which stood at 84.4 pc. India’s domestic load factor was 83.3 pc, despite a decline of 2.6 percentage points. China followed closely with a load factor of 83.2 pc. In contrast, the US domestic load factor dropped to 80.3 pc, with Australia slightly ahead at 81.8 pc.
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Willie Walsh
“Passenger demand grew by 3.3 pc year-on-year in March, a slight strengthening from the 2.7 pc growth reported for February. A capacity expansion of 5.3 pc however, outpaced the demand expansion leading to a load factor decline from record highs to 80.7 pc 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,” said Willie Walsh, Director General, IATA.