Global air passenger demand rose by 3.3 per cent in March ¨C as measured by revenue passenger kilometres (RPK) - compared with the same month in 2024, according to the latest analysis from airlines association IATA.

But IATA said that total capacity (available seat kilometres) ¡°outpaced the demand expansion¡± at 5.3 per cent in March, leading to a 1.6 percentage point year-on-year fall in the month¡¯s load factor to 80.7 per cent.

On a regional basis, airline demand in Europe rose by 4.4 per cent year-on-year in March while capacity was up by 6.4 per cent, which reduced overall load factor 1.5 points to 79.2 per cent.

But the North American market saw a 1.1 per cent fall in RPKs in March, despite capacity rising by 3.5 per cent. Although the region¡¯s load factor remained above the global average at 81.4 per cent.

¡°There remains a lot of speculation around the potential impacts of tariffs and other economic headwinds on travel,¡± said Willie Walsh, IATA¡¯s director general.

¡°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.¡±