Middle Eastern airlines saw a 3.1 percent annual increase in passenger demand in February as capacity grew 1.3 percent and load factor reached 81.9 percent. The latest report from the International Air Transport Association (IATA) revealed that total global passenger demand was up 2.6 percent compared to February 2024. Total capacity, measured in available seat kilometers (ASK), was up 2 percent year-on-year, while the load factor rose 0.4 percentage points to 81.1 percent.
“While traffic growth slowed in February, much of this can be explained by factors including the leap year and lunar new year falling in January compared to February last year. February traffic hit an all-time high, and the number of scheduled flights is set to continue increasing in March and April. But we need to keep a close eye on developments in North America, which saw falls in both domestic and international traffic,” said Willie Walsh, IATA’s Director General.
Domestic demand falls 1.9 percent
International passenger demand rose 5.6 percent compared to February 2024. Capacity was up 4.5 percent year-on-year, and the load factor rose to 80.2 percent. Meanwhile, domestic passenger demand fell 1.9 percent in February and capacity was down 1.7 percent year-on-year. The load factor declined 0.2 percentage points to 82.6 percent.
International revenue passenger kilometers (RPK) growth moderated to 5.6 percent in February, down from 12.3 percent growth in January. However, this growth meant that all regions except North America established record February levels of demand.
However, domestic RPK fell 1.9 percent over the previous February and load factors were almost flat. The taffic decline in China was likely due to the Lunar New Year falling in January this year compared to February 2024. Falling U.S. consumer confidence may also have contributed to the 4.2 percent decline in domestic U.S. traffic. On the other hand, India continued to see strong demand growth of 13.2 percent with the load factor at 90.3 percent.
Asia-Pacific airlines see highest growth
Asia-Pacific airlines achieved a 9.5 percent annual increase in passenger demand. Their capacity increased 8.3 percent year-on-year, and their load factor was 85.7 percent. Meanwhile, European carriers recorded a 5.7 percent annual increase in demand. Capacity increased 4.9 percent year-on-year, and the load factor was 75.5 percent.
Latin American airlines also saw a 6.7 percent year-on-year increase in passenger demand. Capacity climbed 9.9 percent year-on-year, while the load factor was 81.7 percent. In addition, African airlines saw a 6.7 percent year-on-year increase in demand. Capacity was up 4.0 percent year-on-year, and load factor rose to 75.3 percent.
The only region that witnessed a decline in passenger demand was North America, with airlines recording a 1.5 percent decline in demand. Capacity also decreased 3.2 percent year-on-year but the load factor rose 1.3 percentage points to 78.9 percent.
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Air cargo demand declines
In a separate report, IATA revealed that global demand for air cargo, measured in cargo ton-kilometers (CTK), declined by 0.1 percent compared to February 2024 levels, marking the first decline since mid-2023. Capacity, measured in available cargo ton-kilometers (ACTK), also decreased by 0.4 percent annually.
“February saw a small contraction in air cargo demand, the first year-on-year decline since mid-2023. Much of this is explained by February 2024 being extraordinary—a leap year that was also boosted by Chinese New Year traffic, sea lane closures and a boom in e-commerce. Rising trade tensions are, of course, a concern for air cargo. With equity markets already showing their discomfort, we urge governments to focus on dialogue over tariffs,” added Walsh.
Only two regions witnessed an increase in demand for air cargo in February. Asia-Pacific airlines saw 5.1 percent year-on-year demand growth for air cargo as capacity increased by 2.7 percent annually. In addition, Latin American carriers saw 6 percent annual demand growth for air cargo, the strongest growth among the regions. Capacity increased 7.6 percent year-on-year.
Meanwhile, Middle Eastern carriers saw an 11.9 percent decrease in demand growth for air cargo in February, the slowest among the regions. Capacity also decreased by 4 percent annually. North American carriers also saw a 0.4 percent decrease in demand growth for air cargo, while capacity decreased by 3.5 percent year-on-year. In addition, European carriers saw a 0.1 percent year-on-year decrease in demand growth for air cargo as capacity decreased 0.2 percent year-on-year.
