IATA: jet fuel rationing threat puts airlines under pressure
Its prices and Gulf closures threaten capacity and connections for the Summer season
The International Air Transport Association (IATA) released data for March 2026 global passenger demand:
Total demand, measured in revenue passenger kilometers (RPK), was up 2.1% compared to March 2025. Total capacity, measured in available seat kilometers (ASK), decreased 1.7% year-on-year. The load factor was 83.6% (+3.1 ppt compared to March 2025).
International demand fell -0.6% compared to March 2025. Capacity was down -6.2% year-on-year, and the load factor was 84.1% (+4.7 ppt compared to March 2025). The overall decline in international traffic was led by a -60.8% fall in traffic by carriers in the Middle East.
Domestic demand increased 6.5% compared to March 2025. Capacity increased 5.6% year-on-year. The load factor was 83.0% (+0.7 ppt compared to March 2025).
“Demand for air travel continued to grow in March despite disruptions in the Middle East. The nearly 61% decline in international traffic by carriers in the Middle East did, however, restrain global growth to 2.1%. Outside of the Middle East demand grew by 8%", said Willie Walsh, IATA’s Director General.
“Everybody’s watching what’s happening with jet fuel—both supply and pricing. On the supply side, over the next months we could see shortages in parts of the world with high dependence on supplies from the Gulf, especially Asia and Europe. And the extraordinarily high cost of jet fuel is increasingly being reflected in 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. So far, the Summer is shaping up to be a normally busy time for travel. That’s positive news, but airline resilience is being tested and stabilizing the supply and price of fuel is crucial. In the meantime, it’s important for regulators to be prepared to grant airlines some flexibility on slots considering the extraordinary circumstances of airspace capacity restrictions and potential fuel rationing", said Walsh.
Regional Breakdown - International Markets
International RPK fell -0.6%, the first decline since March 2021. This fall was due to the major decrease in Middle East traffic. In contrast, other international markets grew by 9%, and the passenger load factor rose in all regions except the Middle East.
Domestic Markets
Domestic RPK rose by a robust 6.5% in March compared to March 2025, with capacity growth of 5.6%. China and Brazil once again led the pack with double-digit expansion, and Australia and Japan also showed notably stronger growth. Indian domestic traffic fell, perhaps as a result of fewer feeder flights to the hubs serving the Middle East.
AVIONEWS - World Aeronautical Press Agency