Global Air Passenger Demand Falls 1.7% in June, IATA Reports

Tashkent, Uzbekistan (UzDaily.uz) — Global demand for air passenger transport in June 2026 decreased by 1.7% compared to the same period last year, the International Air Transport Association (IATA) reported. Excluding the Middle East, the decline stood at 0.6%. Overall capacity contracted by 1.3%, while the passenger load factor reached 84.2%—down 0.4 percentage points from June 2025.

International traffic dropped by 0.9%, but recorded a 1.1% increase when excluding the Middle East. Domestic traffic contracted by 3.0%, with domestic capacity falling by 2.4%.

IATA Director General Willie Walsh stated that the decline in global demand was largely driven by contractions in domestic markets across China, the United States, and Japan, alongside weak, though improving, international demand for Middle East carriers.

According to Walsh, despite improvements in the Middle East, renewed tensions will not support the region's recovery, while rising fuel prices will continue to make airfares more expensive for passengers. He noted that people continue to travel, making an important contribution to global economic growth, but stabilizing the situation in the Middle East and normalizing oil supplies would improve prospects for airlines, economies, and societies worldwide.

By Region

Middle Eastern carriers posted the largest drop in demand, down 13.9%, against an 11.3% reduction in capacity and a load factor of 76.1%.

IATA noted that the aftermath of the war in Iran continues to create sharp negative year-on-year comparisons, though the rate of decline halved compared to April—reflecting both a gradual normalization of airline operations in the region and a lower base of comparison, as June 2025 was impacted by military strikes.

Demand in the Asia-Pacific region fell by 2.0% as capacity contracted by 2.1%. In contrast, Europe recorded 0.8% demand growth with a 1.4% capacity increase. Demand in North America dropped by 1.1% alongside a 1.1% decrease in capacity. Growth was registered in Latin America and the Caribbean (up 1.5% in demand with a 3.9% capacity increase) and Africa (up 3.8% in demand with a 4.7% capacity increase).

International Traffic

In the international segment, demand for Asia-Pacific airlines grew by 0.4% as capacity shrank by 1.1%; slower growth was linked to several carriers scaling back short-haul routes due to rising fuel prices, with international traffic within Asia dropping 4.8%. European airlines reported a 1.5% rise in international demand with a 2.0% capacity growth; the Europe–Asia route expanded by 11.0%—the fastest growth among all major international corridors.

For North American carriers, international demand declined by 1.0% while capacity decreased by 0.7%.

Middle Eastern airlines on international routes experienced a 14% fall in demand alongside an 11% capacity reduction. Latin American carriers grew international demand by 3.5% with a 6.3% capacity increase, while African airlines posted a 6.7% increase in international demand alongside a 7.0% capacity expansion.

Domestic Traffic

Global domestic demand contracted by 3.0% year-on-year in June.

Brazil was the only major domestic market to post growth, rising 0.9%, while Australia remained flat. All other major domestic markets declined, with the steepest drops seen in China (down 5.2%) and Japan (down 3.8%), which IATA attributed to rising fuel prices.

Passenger load factors also fell across these markets, with the most notable drop recorded in Brazil, down 2.5 percentage points. Domestic demand in the United States fell by 1.2%, while India recorded a 0.5% drop.