This report provides important new evidence on the size and appropriate use for demand elasticities for air travel. It outlines the key findings from extensive research undertaken on behalf of IATA by InterVISTAS Consulting Inc. to estimate air travel demand elasticities applicable to a wide range of air transport markets1. It builds upon previous academic research to provide new estimates of air travel demand elasticities in different locations and scenarios, based on a comprehensive econometric analysis using key air travel databases. The aim of the study is to provide robust air travel demand elasticity estimates to ensure that policy decisions related to issues such as liberalisation, airport charges, taxation, emissions schemes, are made on the basis of appropriate and reliable evidence. It provides important new estimates to ensure that price elasticity estimates do not underplay the sensitivity of passengers to price and are used correctly.