New Report Identifies Problem Spot for Air Travel Growth

North America saw the only decrease in passenger demand worldwide this February, according to the International Air Transport Association’s (IATA) new data. 

Total demand, which is measured in revenue passenger kilometers, or RPKs, increased globally by 2.6 percent from last February. International travel demand increased globally by 5.6 percent, while domestic demand fell by 1.9 percent. 

“While traffic growth slowed in February, much of this can be explained by factors including the leap year, and lunar new year falling in January compared to February last year,” said Willie Walsh, IATA’s Director General. “February traffic hit an all-time high, and the number of scheduled flights is set to continue increasing in March and April. But we need to keep a close eye on developments in North America, which saw falls in both domestic and international traffic.”

While regions saw an increase in RPKs—Africa saw the highest growth, at 6.8 percent from February 2024—North America’s RPKs decreased 3.2 percent.

So, while all the other regions saw record growth in February, which is typically a slower month for travel worldwide, North America was the only region that backslid into the negative. Additionally, domestic travel in the U.S. fell 4.2 percent. 

“Consumer confidence in the country has recently dropped, and in February 2025, plummeted to a level close to those observed in late 2022 after decreasing for three consecutive months,” the report explained. “These developments reflect the current concerns of US consumers regarding policy and economic factors.” 

It’s likely that the Trump Administration’s economic plans, including an escalating global trade war which is raising prices for Americans, could be to blame. 

A newly published Tourism Economics report from March mentioned that a worsening trade war would lower the American travel industry’s expected GDP for the year, warning of “high-risk consequences,” resulting in job losses for American workers and billions of lost revenue. 

There are already signs that travel businesses are noticing: Alex Cruz, vice chair of WestJet, noted that Canadians are canceling their travel plans to the U.S. and choosing to visit other destinations instead. Hawaiian tourism officials also expressed concern about the trade war, which as led many Canadians to cancel their travel plans to the state. American air carriers also recently lowered their profit forecasts for at least the first quarter of the year. 

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