The International Air Transport Association (IATA) has announced global passenger traffic results for March 2015 showing demand (revenue passenger kilometers or RPKs) rise of 7.4 per cent compared to March 2014. This was an improvement on February, when year-over-year growth was 6.4 per cent.

The acceleration in the year-on-year comparison reflects the residual impact of the February Lunar New Year celebrations, which tend to boost leisure travel in the weeks before and after the holiday. In 2014, the holiday occurred at the end of January. However, underlying traffic trends confirm demand remains robust. March capacity rose 5.6 per cent and load factor climbed 1.3 per centage points to 80 per cent. Domestic markets experienced stronger growth than international markets, but both performed well.

Tony Tyler, director general and CEO, IATA said, “March traffic continues the trend of healthy demand for travel. We may, however, see a softening of demand in the second quarter. There are signs that regional trade activity in Asia-Pacific may be slowing and Eurozone economic weakness continues to disappoint.”

International Passenger Markets

March international passenger traffic rose seven per cent compared to the year-ago period. Capacity climbed 5.4 per cent and load factor increased 1.2 per centage points to 78.9 per cent. All regions recorded year-over increases in demand except for Africa.

– Asia-Pacific airlines recorded 11.1 per cent increase in demand compared to March 2014, strongest among the regions. The timing of the Lunar New Year in mid-February contributed to the robust performance as holiday-related travel continued into early March. Capacity rose 7.1 per cent, boosting load factor 2.9 per centage points to 78.5 per cent. The underlying trend in air travel on Asia-Pacific carriers is likely to be weaker than performance suggests as regional trade activity appears to be slowing after strong gains in late 2014.

– European carriers’ international traffic climbed 5.4 per cent in March compared to the year-ago period. Capacity rose 3.6 per cent and load factor climbed 1.4 per centage points to 80.8 per cent, highest among the regions. While the Eurozone is reporting very weak economic expansion, outside the Eurozone, nations like Turkey continue to record strong growth.

– North American airlines experienced just a 2.7 per cent traffic rise in March over a year ago, reflecting the maturity of these travel markets. The US economy continues to lead developed economies in performance. Capacity rose 2.1 per cent, edging up load factor 0.5 per centage points to 80.4 per cent.

– Middle East carriers demand climbed 9.8 per cent in March but capacity growth of 11.9 per cent meant that load factor fell 1.5 per centage points to 77.1 per cent compared to March 2014. Middle East economies are comparatively well-placed to withstand the drop in oil prices and measures of non-oil-related business activity continue to show improvement.

– Latin American airlines’ traffic rose 4.3 per cent in March compared to March 2014. Regional trade volumes have been improving, but the Brazilian economy continues to tread water. Capacity rose 5.5 per cent and load factor slipped 0.9 percentage points to 77.4 per cent.

– African airlines endured another month of declining demand, as traffic dropped 1.1 per cent in March compared to a year ago. The weakness reflects adverse economic developments in parts of the continent including Nigeria, Africa’s largest economy, which is suffering from the collapse in oil prices. Accompanying cuts in capacity of 3.2 per cent, pushed load factor upwards 1.4 per centage points to 65.7 per cent, still the lowest among the regions.

Domestic Passenger Markets

Domestic air travel rose eight per cent in March year-on-year, driven by growth in China and India. Capacity rose six per cent and load factor was 82 per cent, up 1.5 per centage points over March 2014.

– China domestic air travel soared 22 per cent in March compared to a year ago, showing the residual impact of the Lunar New Year celebrations. However, recent data show that GDP for the first quarter was seven per cent, which was slightly less than fourth quarter 2014 growth of 7.3 per cent.

– India’s airlines saw traffic jump 17.9 per cent in March, likely reflecting market stimulation by local carriers and a strengthening economy.

Tyler said, “The devastating earthquake in Nepal has gripped the world’s attention. It also has highlighted aviation’s vital role. Airlines help transport the responders who perform their heroic efforts in bringing food, medical supplies and equipment to those in need. All our thoughts and prayers go out to the victims of this disaster and to those who are working around the clock to deliver hope and aid.”

“Next month, Miami will be the focus of the global air transport industry, when the 71st IATA Annual General Meeting will take place, June 7-9, 2015. The United States is the world’s largest market and among its most vibrant economies, in part owing to the enormous contribution made by aviation. In the US, aviation supports some 5.7 million jobs and nearly US$ 562 billion in GDP. Our message is that aviation can play an even bigger role, but only if governments understand that aviation’s greatest contribution is in the value creation it enables, not in the taxes and fees that can be extracted from it,” said Tyler.