Aviation Business News

Passenger demand growth slows slightly in February, IATA reports

The International Air Transport Association (IATA) has released its global passenger demand data for February 2025, revealing a modest overall increase in air travel, primarily driven by international markets.

The International Air Transport Association (IATA) has released its global passenger demand data for February 2025, revealing a modest overall increase in air travel, primarily driven by international markets.

Total demand, measured in revenue passenger kilometres (RPK) was up 2.6% compared to February 2024. Total capacity, measured in available seat kilometres (ASK) rose to 2.0% year-on-year, and the month’s load factor was 81.1%, +0.4ppt compared to the previous year.

International demand rose 5.6% compared to February 2024. Capacity was up 4.5% year-on-year, and the load factor was 80.2% (+0.9 ppt compared to February 2024).

Although international RPK growth moderated to 5.6% in February year-on-year, it was down from 12.3% growth in January. However, this growth meant that all regions except North America established record February levels of demand. The region’s carriers saw -1.5% year-on-year demand fall and capacity decrease 1.3% year-on-year.

However, the load factor for North America was 78.9%, +1.4 from the 2024 record.

Asia-Pacific airlines achieved year-on-year increases of 9.5% in demand, 8.3% in capacity, and the load factor was 86.7%, +0.9 ppt from February 2024.

Both African and Latin American airlines saw year-on-year demand increase to 6.7%, with capacity in Africa up 4.0% and in Latin America up 9.9%. The load factor for Africa rose to 75.3% (+2.0 ppt this February) while in Latin America it fell to 81.7%, -2.5 ppt from last year.

However, February’s domestic demand this year fell 1.9%, capacity was decreased by 1.7% year-on-year, and the load factors were almost flat, -0.2ppt, compared to 2024, at 80.2%.

IATA cites that traffic decline in China (-3.2%) could be due to Lunar New Year falling in January as opposed to February like in 2024, and declining consumer confidence in the US could have contributed to the -4.2% decline in its domestic traffic.

India was among few countries analysed in the report to continue to see strong demand, with an RPK of 13.2% and load factor at 90.3%, +1.4 ppt compared to February 2024.

Director general of the IATA, Willie Walsh, commented on February’s slow performance: “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.”

Walsh also stated that the recent shut-down of Heathrow airport is a reminder that the current passenger rights regime in Europe and the UK is not up to standard, with annual costs of compensation, care, and assistance, running into the billions.

“Thankfully, the Polish Presidency of the EU has recognised that this is a drag on European competitiveness and is progressing much-needed and long-anticipated reforms to EU261. While many of the proposed reforms are sensible, the package stops short of a real solution,” said Walsh.

He also said that even with the reforms, EU261 will continue to target the airlines with penalties, regardless of whether the root cause of delays are infrastructure incidents out of carriers’ control.

“Over two decades of EU261 have not seen a reduction in delays because infrastructure providers have no incentive to improve their game. Sadly for European travellers, we are likely to see this play out again in this summer’s peak travel season. Genuine reform of EU261 must ensure that all parties responsible for delays have a stake in the consequences,” he added.

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