European airlines see rising demand, cancel low‑traffic routes as fares dive

Data from the International Air Transport Association (IATA) show that airline passenger demand continued to grow in March, with the Asia‑Pacific region up 11% and Europe up 7.7%. Domestic travel remains a key driver, but a roughly 61% drop in international traffic by Middle‑Eastern carriers has limited overall growth.

Airlines are responding by eliminating under‑performing services: about 6,500 low‑capacity connections scheduled for 2025 have been withdrawn, affecting remote areas worldwide. Higher operating costs and fluctuating demand make these routes unprofitable, prompting carriers to use smaller aircraft or reduce frequencies.

At the same time, flight prices have sharply fallen for the summer season. In Italy, fares on popular routes such as Rome‑Catania and Turin‑Palermo have dropped by 40‑45%, while a Bergamo‑Madrid flight fell 71% from €244 to €72. The price plunge stems from weakened demand due to geopolitical tensions, especially the conflict in the Middle East and concerns over jet‑fuel supply, which have led travelers to postpone bookings. Airlines like Ryanair, easyJet and Wizz Air have kept schedules intact but are offering aggressive discounts to stimulate demand.