Global air passenger demand declined 1.7% year-on-year in June 2026, affected by weaker domestic markets in China, the US and Japan, as well as continued pressure on Middle East aviation, according to the latest data from the International Air Transport Association (IATA).
Total capacity, measured in available seat kilometres (ASK),
fell 1.3% compared with June 2025, while the global passenger load factor stood
at 84.2%, down 0.4 percentage points year-on-year.
International passenger demand decreased 0.9% year-on-year,
with capacity falling 0.6% and load factor reaching 84.2%.
However, excluding the Middle East, international traffic
increased 1.1%, highlighting the impact of regional disruptions on global
performance.
Domestic air travel markets recorded a sharper decline, with
demand falling 3.0% year-on-year and capacity down 2.4%.
The domestic load factor was 84.0%, a decline of 0.5
percentage points compared with June 2025.
Willie Walsh, IATA Director General, said air travel demand
remains closely linked to wider economic conditions and geopolitical developments:
“Global demand for air travel was down 1.7% in June compared to 2025. This is
largely due to domestic market declines in China, the US, and Japan, and weak
but improving international demand for Middle East carriers. While Middle East
performance improved, renewed tensions will not help the region’s recovery and
the knock-on impact of rising fuel prices will continue to burden travelers
with higher airfares.”
Walsh added: “People continue to travel, which is an
important contributor to global economic growth. There is no doubt, however,
that stabilising the situation in the Middle East and normalising oil supplies
would improve prospects for airlines, economies, and societies the world over.”
Regional performance varied significantly across
international markets. Airlines in the Asia-Pacific region recorded a modest
0.4% increase in demand, while capacity declined 1.1%.
The region’s load factor reached 84.0%, up 1.3 percentage
points year-on-year.
IATA said higher fuel prices led some carriers to reduce
short-haul capacity, with international routes within Asia declining 4.8%.
European airlines reported stronger performance, with demand
rising 1.5% year-on-year. Capacity increased 2.0%, while the load factor stood
at 87.1%.
The Europe-Asia route corridor recorded the strongest growth
among major international markets, increasing 11%.
North American carriers saw demand fall 1.0% year-on-year,
with capacity declining 0.7% and load factor easing to 86.9%.
Middle Eastern airlines experienced the largest decline,
with demand falling 14% and capacity dropping 11%.
The region’s load factor declined to 76.3%. IATA said the
impact of the Iran conflict continued to affect comparisons, although the pace
of decline has improved since April as operations gradually normalised and
comparison figures from 2025 reflected the impact of military strikes.
Latin American airlines recorded a 3.5% increase in demand,
while capacity rose 6.3%. The load factor declined to 81.6%. African carriers
posted the strongest regional growth, with demand rising 6.7% and capacity
increasing 7.0%.
Domestic markets remained under pressure, with demand
declining across most major markets.
China recorded a 5.2% decline in domestic traffic, while
Japan fell 3.8%, with higher fuel costs cited as a likely factor.
Brazil was the only major market to record growth, with
domestic traffic rising 0.9%, although its load factor fell by 2.5 percentage
points.
IATA said stabilising fuel markets and easing geopolitical tensions will be key factors in supporting stronger airline performance and global travel recovery. -TradeArabia News Service