The International Air Transport Association (IATA) reported that global passenger air travel demand decreased by 1.7% in June 2026 compared to the same period last year. Excluding the Middle East, the decline was 0.6%. Total capacity shrank by 1.3%, while the passenger load factor reached 84.2%, which is 0.4 percentage points lower than in June 2025.
International traffic fell by 0.9%, but excluding the Middle East, it showed growth of 1.1%. Domestic traffic decreased by 3.0%, and domestic capacity dropped by 2.4%.
IATA CEO Willie Walsh noted that the drop in global demand is largely due to the contraction of domestic markets in China, the United States, and Japan, as well as weak, albeit improving, international demand for Middle Eastern carriers. According to Walsh, despite improvements in the Middle East region, renewed tensions will not support regional recovery, and rising fuel prices will continue to increase airfare costs for passengers.
Middle Eastern carriers recorded the largest demand drop—13.9%, with a capacity reduction of 11.3% and a load factor of 76.1%. IATA indicated that the consequences of the war in Iran continue to create sharp year-on-year negative comparisons, although the rate of decline has halved compared to April, reflecting both the gradual normalization of airline operations in the region and a lower comparison base, as June 2025 was affected by military strikes.
In the Asia-Pacific region, demand fell by 2.0%, and capacity shrank by 2.1%. Conversely, Europe showed a demand growth of 0.8% with a capacity increase of 1.4%. In North America, demand decreased by 1.1%, accompanied by a 1.1% reduction in capacity. Growth was noted in Latin America and the Caribbean (demand growth of 1.5% with a 3.9% capacity increase) and in Africa (demand growth of 3.8% with a 4.7% capacity increase).
In the international segment, demand for Asia-Pacific airlines grew by 0.4%, while capacity decreased by 1.1%; the slowed growth is linked to some carriers reducing short-haul routes due to rising fuel prices, while intra-Asian international traffic fell by 4.8%. European airlines reported a 1.5% rise in international demand with a 2.0% increase in capacity; the Europe-Asia route expanded by 11.0%, marking the fastest growth among all major international corridors.
For North American carriers, international demand fell by 1.0%, and capacity decreased by 0.7%. On international routes, Middle Eastern airlines faced a 14% drop in demand and an 11% reduction in capacity. Latin American carriers increased international demand by 3.5% with a 6.3% capacity increase, and African airlines recorded a 6.7% rise in international demand with a 7.0% capacity expansion.
Global domestic demand contracted by 3.0% year-on-year in June. Brazil was the only major domestic market to show growth at 0.9%, while Australia remained stable. All other major domestic markets showed a decline, with the sharpest drops observed in China (a decrease of 5.2%) and Japan (a decrease of 3.8%), which IATA attributes to rising fuel prices.
Passenger load factors also declined in these markets, with the most noticeable drop recorded in Brazil—by 2.5 percentage points. Domestic demand in the United States fell by 1.2%, and India recorded a decrease of 0.5%.
According to data from the International Air Transport Association (IATA), global demand for air cargo increased by 8.5% compared to the same period last year in June 2026.
The indicator, measured in tonne-kilometers of cargo, showed a growth of 9.6% in the international operations segment. The overall capacity growth was 4.4%, and 4.9% for international flights. IATA Director-General Willy Walsh noted that demand growth was observed in all regions of the world, with North America contributing the most to the increase.
Walsh emphasized that the rate of demand growth exceeded the rate of capacity growth both globally and in most regions, with the exception of Latin America and the Caribbean. Furthermore, demand grew faster than global trade turnover, which was supported by the supply of high-tech products and urgent shipments.
These trends allowed Walsh to express optimism about the second half of 2026, but he also pointed out persistent risks. These include the ongoing conflict in the Middle East and increased US attention to tariff policy.
Global trade turnover grew by 5.2% year-on-year in June. Aviation fuel prices decreased by 20% compared to May but remain 45.8% higher than last year's level.
The global manufacturing Purchasing Managers' Index (PMI) fell by 0.5 points to 53.0, and the new export orders index remained below the 50-point threshold for the fourth consecutive month, reaching 49.4. This indicates that the growth in air transport is driven by specific trade routes rather than a broad increase in global exports.
North America showed the strongest growth among regions, where demand increased by 13.1% and capacity grew by 6.2%. In the Asia-Pacific region, the largest market with a 35.8% share of the global market, demand grew by 7.9%, and capacity increased by 4.3%. In Europe, demand rose by 6.9%, while capacity increased by 3.7%.
In the Middle East, demand grew by 5.6%, and capacity by 2.5%. However, IATA noted that this figure is distorted due to a weak base comparison, as June 2025 was particularly difficult for Middle Eastern carriers due to conflict-related disruptions.
Latin America and the Caribbean showed the worst results: demand grew by 3.5%, while capacity increased by 9.8%. In Africa, demand increased by 4.7%, despite a 7.1% decrease in capacity.
Trends on major trade routes were mixed. The Asia-North America route showed the highest growth at 14.7%, marking the fifth consecutive month of expansion and accounting for 23.5% of the industry's total volume. Intra-Asia cargo grew by 7.2% (the 32nd consecutive month of growth), and the Europe-Asia route expanded by 7.1% (the 40th consecutive month of growth), while the Africa-Asia route increased by 0.9% (the 12th consecutive month of growth).
Routes related to the Persian Gulf continue to face pressure due to the Middle East conflict. Europe-Middle East shipments decreased by 41.1% for the fourth consecutive month, and the Middle East-Asia route fell by 4.1%. Europe-North America shipments remained unchanged.
