Global passenger demand, a key indicator for air travel, saw a solid increase in January 2025. The International Air Transport Association (IATA) data shows total demand, measured in revenue passenger kilometers (RPK), increased by 10.0% compared to January 2024. This surge in air travel comes with a corresponding rise in total capacity, which went up by 7.1% year-on-year. The January load factor reached an all-time high for the month, hitting 82.1%, showing a 2.2 percentage point increase compared to January 2024.
The strong passenger demand for air travel aligns with survey results from November 2024. In that survey, “94% of travelers indicted that they planned to travel as much or more in the coming 12 months than they did in the past year.”
International and Domestic Market Growth
According to IATA, International passenger demand showed a robust 12.4% increase compared to January 2024. Capacity for international flights rose by 8.7% year-on-year, and the load factor reached 82.6%, another all-time high for January, with a 2.7 percentage point increase.
IATA also said that domestic demand also contributed to the overall growth, increasing by 6.1% compared to January 2024. Domestic capacity went up by 4.5% year-on-year, and the load factor reached 81.2%, a 1.2 percentage point increase, also an all-time high for January. “We’ve seen a notable acceleration in demand this January, with a particularly strong performance by carriers based in the Asia-Pacific region,” said Willie Walsh, IATA’s Director General. “The record high load factors that accompany this strong demand are yet another reminder of the persistent supply chain issues in the aerospace sector.”
Looking at regional performance, Asia-Pacific airlines saw a 21.8% year-on-year demand increase, with capacity rising by 16.5% and a load factor of 86.7%. European carriers experienced an 8.6% demand increase, with capacity up by 6.2% and a load factor of 79.2%. Middle Eastern carriers recorded a 9.6% demand increase, with capacity up by 4.4% and a load factor of 83.8%.
North American carriers saw a 3.8% demand increase, with capacity up by 0.6% and a load factor of 81.8%. Latin American airlines had a 12.9% demand increase, with capacity up by 15.5% and a load factor of 84.3%. African airlines saw a 14.9% demand increase, with capacity up by 11.2% and a load factor of 75.9%.
Passenger Satisfaction and Market Details
Domestic RPK increased by 6.1% over the previous year, with strong growth in India, Japan, and China. China’s growth of 10.0% resulted from record travel during the Lunar New Year. Load factors for domestic flights continued to rise, hitting a record high of 81.2% for January.
“Airlines are doing a good job of accommodating growing demand amid fleet and infrastructure constraints with satisfaction levels above 95%, and nearly 80% of travelers agreeing that air travel is good value for money,” Walsh stated. “Choice is an important component of this satisfaction. Some 70% prefer to pay the lowest fare and customize the additional services they need. It is important for regulators to clearly understand that the majority of travelers do not want to pay automatically for services they don’t need.”
In detail, the domestic market showed the following changes: Australia’s domestic market saw a 4.7% increase in RPK, but a 2.0% decrease in ASK, resulting in a 5.0 percentage point increase in load factor to 77.4%. Brazil’s domestic market had a 6.6% increase in RPK and a 6.9% increase in ASK, leading to a slight decrease in load factor to 83.0%.
China’s domestic market experienced a 10.0% increase in RPK and a 5.7% increase in ASK, with a 3.3 percentage point increase in load factor to 83.3%. India’s domestic market showed a 17.1% increase in RPK and a 17.2% increase in ASK, with a slight decrease in load factor to 88.9%. Japan’s domestic market had a 12.1% increase in RPK and a 6.1% increase in ASK, with a 3.9 percentage point increase in load factor to 73.8%. The US domestic market saw a 3.0% increase in RPK and a 2.6% increase in ASK, with a 0.3 percentage point increase in load factor to 79.6%.
The data shows a clear rise in passenger demand. Airlines across the globe managed increased travel with high satisfaction.
