As global air passenger traffic continues its upward trajectory, the International Air Transport Association (IATA) has underscored the critical need for airports to evolve alongside the growing demand. IATA, which acts as a clearing house for major airlines across the globe, emphasised that while the surge in passenger numbers is a positive development for airlines and their home economies, this growth will remain unsustainable without significant advancements in airport services.
IATA’s recent report on global passenger demand, published in March 2025, revealed a 3.3% increase in air travel compared to March 2024. This increase, measured in revenue passenger kilometres (RPK), is a clear sign of the industry’s expansion. Correspondingly, total airline capacity, measured in available seat kilometres (ASK), saw a 5.3% year-on-year rise. However, the global load factor for March 2025 dipped to 80.7%, marking a slight decrease of 1.6 percentage points from the previous year.
While international travel demand rose by 4.9%, domestic air travel increased by just 0.9%. These figures underscore a global trend, with rising demand met by an even faster pace of capacity expansion. This imbalance in growth rates has led to a marginal decline in load factors, indicating that airlines are facing challenges in aligning capacity with demand.
IATA Director-General Willie Walsh highlighted that March’s growth in passenger demand was a slight improvement over February’s 2.7% increase, indicating a resilient global air travel market despite economic uncertainties. Walsh cautioned, “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 monitored, March numbers continued to show a global pattern of growth for air travel.”
IATA stresses that meeting this growing demand presents several logistical challenges, particularly in terms of airport capacity and air traffic management. The association emphasized the need to address supply chain inefficiencies, while ensuring that airports are equipped to handle an influx of travellers without compromising service quality.
Regional Performance and Trends
The regional breakdown further illustrates the diverse dynamics at play. In Asia-Pacific, the strongest growth was recorded, with a remarkable 9.9% increase in demand. This growth, however, was accompanied by a slight dip in load factors across regions. The Middle East saw a 1.0% decline in demand, which IATA attributes partly to the timing of Ramadan, impacting travel patterns.
In Africa, passenger demand rose by 3.3%, while capacity grew by 3.5%. The load factor in Africa was 70.1%, which remains the lowest among the regions. Meanwhile, Latin American airlines recorded a solid 7.7% increase in demand, outpacing a 12.1% growth in capacity. However, the region experienced a larger-than-average decrease in load factor, down by 3.3 percentage points.
The Path Forward for the Aviation Sector
As the aviation sector looks to sustain growth, IATA urges that investments in infrastructure, including upgrades to airport facilities and air traffic management systems, are paramount. Airlines and airports must work in tandem to ensure that the expanding demand does not outstrip capacity, which could ultimately strain the traveller experience.
“With capacity increases outpacing demand, challenges in accommodating growing numbers of passengers will remain. Addressing airport congestion and air traffic management issues is crucial to meeting the needs of global air travellers,” said Walsh.
The association’s call to action reflects the growing urgency for the aviation sector to adapt and prepare for continued growth, balancing operational efficiency with passenger service.
