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IATA - logoIn a rare alignment of optimism and altitude, the world’s airlines have finally caught some serious tailwind, with global passenger demand rising 8% year-on-year in April 2025. The International Air Transport Association (IATA), which released the latest data this week, has described the month as a “positive” one for global travel—an understatement, if ever there was one.

The numbers tell a soaring tale. Overall load factors for April hit 83.6%, up a tidy 1.1 percentage points from the same time last year, and total capacity rose by 6.5%. In the world of aviation metrics, that’s about as good as a standing ovation.

But it’s the international sector that truly took off, with demand rising a brisk 10.8%. Capacity wasn’t far behind at 8.5%, and the load factor of 84.1% set a new record for April. It’s as if travellers, long shackled by uncertainty, have finally shrugged off their hesitations and raced to the boarding gate.

“April was a positive month for travel,” said IATA’s Director General Willie Walsh, possibly while wearing his understatement hat. “Growth strengthened, especially for international demand which saw record load factors for the month. The return of the transatlantic market to growth is particularly encouraging.”

A Tale of Two Skies: International Up, Domestic Mixed

While international markets soared, domestic skies were a little more temperamental. Global domestic demand was up just 3.3%, with capacity rising 3.1%. Load factors edged up by a modest 0.1 points to 82.7%. Still healthy, but hardly cause for cartwheels.

There were regional quirks, too. India’s domestic market continued its roaring comeback with a 10.1% increase in demand, though capacity expansion was even quicker, leading to a slightly reduced (but still impressive) load factor of 85.7%. Brazil matched the enthusiasm with a 13.5% surge in RPKs, while Japan bounced back nicely with 7.3% growth.

In contrast, the United States continued its slump, marking the third month of contraction. Domestic US traffic declined by 0.5%, and premium cabin demand was particularly bleak—first and business class travel dropping a hefty 26% for North American international services.

Regional Round-the-World Snapshot

The Asia-Pacific region is having its aviation renaissance, with carriers reporting a 14.4% increase in international demand. Capacity grew by 12.7%, and load factor hit 85.3%—the highest globally.

Europe didn’t do too badly either. European carriers posted a 9.4% increase in demand and a load factor of 84.5%. The continent remains a stronghold for post-pandemic holidaymaking and pent-up travel lust.

Middle Eastern airlines were perhaps the unsung heroes, recording an 11.2% demand rise with a striking 83.1% load factor—a full 3.4 percentage points up from April 2024. These are not numbers to sneeze at.

Africa also came roaring back after two months of decline. Demand rose 13.6%, and load factors jumped by 3.1 points to 76.3%. The continent’s share remains small (just 2.2% of global RPKs), but its trajectory is firmly upward.

Latin America rounded out the strong performers with a 13.9% demand spike, though its load factor dipped slightly by 0.6 points to 83.2%—a minor hiccup, perhaps, in an otherwise impressive month.

India Shines on the Global Stage

With the 81st IATA Annual General Meeting being held in New Delhi, it was perhaps fitting that India’s air connectivity was placed front and centre. Walsh praised the subcontinent’s aviation rise as “nothing short of phenomenal.”

Indian domestic growth is exceeding 10%. “The development of India’s air connectivity in recent years has been nothing short of phenomenal,” Walsh said.

The data bears him out. India’s passenger growth is leading the domestic market globally, and the country’s airports are rapidly modernising to keep up with the booming demand.

Storm Clouds Over the Premium Cabin

Despite the upbeat numbers, not everything is rosy. The premium travel market—long the darling of airline profits—is showing troubling signs. North American first- and business-class demand plunged 26%. That’s not a wobble; it’s a nosedive.

Whether this signals a broader shift in business travel habits or just a temporary blip remains to be seen. Either way, airlines might want to keep the champagne corked for now.

What’s Next?

As we approach the mid-year mark, all eyes will be on whether this robust growth continues. While international numbers shine, domestic markets remain patchy. Airlines will need to stay agile, especially with fluctuating consumer sentiment and economic uncertainty still hovering like low cloud cover.

Still, if April is anything to go by, the skies ahead may be more blue than grey.

 

 

By Michelle Warner

 

 

 

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