Air travel demand is holding steady this summer, even as airlines raise ticket prices, the International Air Transport Association (IATA) announced. Passenger volume grew by 2.1% in March compared to the same month last year.
While the number of flights decreased by 1.7%, airlines managed to increase seat occupancy by 3.1 percentage points, reaching 83.6%.
Impact of Middle East Conflicts
Recent conflicts in the Middle East, particularly the U.S. and Israeli attacks on Iran, severely disrupted air traffic in the region. Consequently, passenger volumes in the Middle East dropped by 58.6% due to airport closures.
However, international passenger volumes outside the Middle East rose by 8%, showcasing resilience in global travel.
Domestic Travel on the Rise
Domestic air travel saw a 6.5% increase in demand compared to March of the previous year, with seat occupancy also improving.
Challenges Ahead
The closure of the Strait of Hormuz, a key route for global oil, has led to soaring energy prices. Airlines are responding by increasing ticket prices.
"While this has not impacted March traffic or forward bookings to date, it remains to be seen at what point high prices could start to shift passenger behavior," said IATA's director Willie Walsh.
IATA
Walsh noted that the summer travel period is critical for airline profits but cautioned that jet fuel shortages could emerge in regions reliant on Middle Eastern supplies.
"Everybody’s watching what’s happening with jet fuel," he added, urging regulators to remain flexible in case capacity restrictions and fuel rationing become necessary.