Global air travel demand rose 9.5 percent year over year in March, the fastest pace in 12 months, according to the International Air Transport Association. IATA attributed the accelerated growth rate to strong global economic conditions. However, IATA expects global air travel demand ultimately to grow more slowly for all of 2018 than it did in 2017, as rising costs for airlines may necessitate fare increases.
"Demand for air travel remains strong, supported by the comparatively healthy economic backdrop and business confidence levels," said IATA director general and CEO Alexandre de Juniac. "But rising cost inputs, particularly fuel prices, suggest that any demand boosts from lower fares will moderate going into the second quarter."
Global capacity rose 6.4 percent year over year in March, and global load factor rose 2.3 percentage points to 82.4 percent, a record for March.
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International Travel
Demand for international flights rose 10.6 percent year over year in March. Capacity rose 6.6 percent, and load factor rose 2.9 percentage points to 81.5 percent. All regions saw strong growth, with Latin America growing the fastest.
Domestic Travel
Domestic air travel demand rose 7.8 percent globally in March. Domestic capacity rose 6.2 percent, and load factor rose 1.3 percentage points to 84 percent.
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