Global air travel demand falls as Middle East traffic plunges

Worldwide passenger traffic falls 1.7% as Middle East demand plunges nearly 14%

Global air passenger demand fell 1.7% year-on-year in June, driven by a sharp decline in the Middle East and weaker domestic traffic in China, the US, and Japan, according to the International Air Transport Association (IATA). Total airline capacity, measured in available seat kilometers, decreased 1.3%, while the passenger load factor slipped 0.4 percentage points to 84.2%. Excluding the Middle East, global demand declined by a more moderate 0.6%. International passenger traffic fell 0.9% from a year earlier, although it rose 1.1% when the Middle East was excluded. International capacity declined 0.6%, while the load factor eased to 84.2%. Domestic demand contracted 3%, with capacity falling 2.4% and the load factor declining to 84%. Middle Eastern carriers recorded the steepest regional fall, with international demand plunging 14% and capacity dropping 11%. Their load factor decreased 2.6 percentage points to 76.3%. IATA said the Iran war continued to weigh heavily on regional traffic, although the pace of decline had halved since April as airline operations gradually normalized. “Global demand for air travel was down 1.7% in June compared to 2025,” said IATA Director General Willie Walsh. Walsh said renewed tensions and higher fuel prices would hinder the region’s recovery and could push airfares higher. European carriers posted a 1.5% increase in international demand, while traffic on the Europe-Asia corridor surged 11%, the strongest growth among major international routes. Asia-Pacific airlines recorded a 0.4% rise in demand despite a 1.1% decline in capacity. IATA said higher fuel prices prompted some carriers to reduce short-haul services within Asia. African airlines registered the strongest regional growth at 6.7%, followed by Latin American carriers at 3.5%. International demand among North American airlines fell 1%, while their capacity declined 0.7%.