The International Air Transport Association (IATA) reported a sharp 10% year-on-year surge in global air passenger demand for January 2025, outpacing capacity growth and driving load factors to record highs.
Airlines worldwide flew 10% more revenue passenger kilometers (RPK) compared to January 2024, while available seat capacity rose 7.1%, pushing the average load factor to 82.1%—a 2.2 percentage point increase and the highest ever recorded for January.
International travel led the rebound, with demand climbing 12.4% year-on-year, supported by robust gains in the Asia-Pacific region. Carriers in Asia-Pacific saw international traffic soar 21.8%, far exceeding the global average, as post-pandemic recovery efforts and resurgent travel from Northeast Asia fueled growth. Europe and North America posted more modest increases of 8.6% and 3.8%, respectively. Meanwhile, Latin America’s 12.9% demand spike was tempered by a 1.9 percentage point drop in load factor, as capacity expansions there outpaced passenger growth.
Domestic markets also expanded, rising 6.1%, with India, Japan, and China driving momentum. China’s Lunar New Year travel boom contributed to a 10% domestic demand increase, while India grappled with engine-related operational challenges despite a 17.1% jump in traffic. Load factors for domestic flights hit 81.2%, another January record.
IATA Director General Willie Walsh attributed the demand surge to resilient traveler confidence, citing a November 2024 survey in which 94% of passengers vowed to maintain or increase travel in the coming year. “Airlines are delivering value despite fleet and infrastructure constraints,” Walsh said, noting that 80% of travelers view airfare as good value. He emphasized the growing preference for customizable fares, with 70% of passengers opting to pay base prices and add services as needed.
The report highlighted ongoing supply chain bottlenecks in the aerospace sector, which have limited capacity growth and contributed to higher load factors. Walsh urged regulators to prioritize affordability and flexibility, stating, “Travelers are clear—they want choice, not bundled services they won’t use.”
Regional disparities underscored the uneven recovery. Africa and the Middle East saw demand rise 14.9% and 9.6%, respectively, with Middle Eastern carriers benefiting from rebounding traffic to Israel and strong Gulf carrier performance. In contrast, North American airlines reported the slowest international growth at 3.8%, though load factors there improved sharply.
The data, compiled from airline reports and third-party sources like FlightRadar24, reflects provisional figures subject to revision. Domestic travel accounted for 38.2% of global RPKs, with six key markets—including the U.S. and China—making up nearly 80% of domestic activity.
As demand accelerates, industry watchers warn that sustained growth hinges on resolving supply chain delays and aligning capacity with passenger expectations for affordability and flexibility.
