IATA: Passenger Traffic and Air Cargo Continue Strong Growth Amid Capacity Constraints

Tashkent, Uzbekistan (UzDaily.com) — The global aviation industry closed 2025 with robust growth in both passenger and cargo demand, despite ongoing capacity shortages and persistent structural challenges.

The International Air Transport Association (IATA) released its year-end report, highlighting both the post-COVID recovery and emerging trends likely to shape the industry’s trajectory in the coming years.

Passenger traffic showed steady demand growth. Total revenue passenger kilometers (RPKs) increased by 5.3% compared with 2024, while available seat kilometers (ASKs) rose by 5.2%. The passenger load factor (PLF) reached a record 83.6% for annual traffic volume.

International flights grew by 7.1%, with capacity up 6.8% and a load factor of 83.5%.

Domestic demand increased moderately by 2.4%, with a PLF of 83.7%, reflecting a post-pandemic normalization and a return to sustainable historical levels.

Regional variations in passenger traffic were notable. The Asia-Pacific region recorded the highest growth rates and a load factor of 84.2%, while Europe also demonstrated steady growth with an 84.8% load factor.

North America experienced the slowest growth in both traffic and capacity, while Latin America saw a notable decline in load factor. Africa, despite a relatively low load factor, recorded the strongest growth compared to other regions.

Domestic markets also set records for passenger numbers and load factors, although growth rates slowed compared to the strong recovery seen in 2024. Brazil led domestic demand growth at 11.1%, while the U.S. domestic market declined by 0.6%. Japan saw a significant increase in domestic load factor (+3.4 percentage points), and India maintained a high load factor of 85.2%, despite a 1.2 percentage point decrease.

Air cargo continued to show solid growth amid challenging global conditions.

Total demand, measured in cargo ton-kilometers (CTKs), rose by 3.4%, with international demand up 4.2%. Available cargo ton-kilometers (ACTKs) increased by 3.7%, and international capacity grew by 5.1%. December confirmed the year’s strong performance, with global demand up 4.3% and international demand up 5.5%.

Cargo yields fell by only 1.5% year-on-year, the smallest decline in three years, reflecting a gradual rebalancing of supply and demand.

Regionally, the Asia-Pacific market showed the highest growth in cargo demand (+8.4%) and capacity (+7.4%). North America was the only region with a decline in demand (-1.3%), while European carriers posted moderate growth (+2.9%).

The Middle East and Latin America recorded modest demand growth, with capacity expanding more significantly, reflecting strategic network adjustments. Africa saw demand rise by 6.0% and capacity by 7.8%.

Analysis of key trade lanes revealed a shift in cargo flows from the traditional Asia–North America route toward Asia–Europe, driven by tariff pressures and the removal of the U.S. de minimis exemption.

Demand also grew on intra-Asia and Middle East–Asia routes, whereas Europe–Middle East and intra-European routes experienced declines.

According to IATA Director General Willie Walsh, 2025 highlighted two key challenges for the industry: decarbonization and supply chain issues. Sustainable aviation requires active government fiscal support, accelerated production of sustainable aviation fuels, and fleet modernization.

Limited maintenance capacity and delays in aircraft deliveries forced airlines to increase load factors and extend the operational life of existing fleets.

In 2026, IATA forecasts a slowdown in passenger and cargo growth rates, but demand is expected to remain strong due to trade and geopolitical factors. The industry will continue adapting by deploying more efficient, higher-capacity aircraft, optimizing networks, and ensuring the resilience of global supply chains.

Overall, 2025 was a year of solid recovery and structural transformation for aviation. The industry faced challenges but demonstrated adaptability and strategic planning, laying the groundwork for stable growth and improved efficiency in the years ahead.