Report from IATA points to ‘speculation’ around tariffs and other economic headwinds

North American carriers saw a 0.1% year-over-year fall in demand in March, the second consecutive monthly decline, according to the latest report from the International Air Transport Association (IATA). While demand had a second consecutive month of year-on-year contraction, IATA said it is important to note that this was an improvement on the -1.5% decline reported for February.

Also in the report:

• Total global demand was up 3.3% compared with March 2024. Total capacity, measured in available seat kilometers, was up 5.3% year on year. The March load factor was 80.7% (down 1.6 percentage points compared with March 2024).
• International demand rose 4.9% compared with March 2024. Capacity was up 7% year on year, and the load factor was 79.9% (down 1.7 percentage points compared with  March 2024).
• Domestic demand increased 0.9% compared with March 2024. Capacity was up 2.5% year on year. The load factor was 82% (down 1.3 percentage points compared with March 2024).

Willie Walsh, IATA’s director general, said, “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, he said, March numbers continued to show a global pattern of growth for air travel. That means, said Walsh, “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.”