According to IATA, total air passenger demand grew 0.2% year-on-year in July 2026. International demand saw a slight 0.1% dip, while domestic demand increased by 0.6%. Regional performance varied, with Latin America posting the strongest growth.

Total air passenger demand, measured in revenue passenger kilometers (RPK), grew 0.2 per cent year-on-year (YoY) in July 2026, according to the latest data released by the International Air Transport Association (IATA). Total capacity, measured in available seat kilometers (ASK), went up 0.3 per cent compared to July 2025, while the global passenger load factor stood at 85.2 per cent. Excluding the Middle East, global passenger traffic registered an expansion of 1.2 per cent.

International vs. Domestic Demand

International travel demand witnessed a slight decrease of 0.1 per cent YoY, accompanied by a 0.3 per cent rise in capacity and a load factor of 85.2 per cent. Excluding Middle Eastern carriers, international demand registered an increase of 1.5 per cent. Meanwhile, domestic passenger demand moved up 0.6 per cent compared to July 2025, with capacity rising 0.2 per cent and the passenger load factor reaching 85.3 per cent.

IATA Economist's Outlook

Marie Owens Thomsen, Senior Vice President Sustainability and Chief Economist at the International Air Transport Association said, "The peak Northern summer travel season is a mostly positive story for air travel. Overall growth of 0.2% in July was achieved despite year-on-year collective declines by carriers in North America and the Middle East," Thomsen said.

"Notably, traffic through the Gulf hubs continues its recovery trajectory. Although high fuel costs, economic uncertainty and geopolitical tensions continue, carriers are expressing confidence in demand for the last part of the year with an almost 3% expansion of seat capacity in September," Thomsen added.

Regional International Performance

Across international passenger markets, performance varied widely among regions. Latin American carriers recorded an increase of 7.1 per cent in international demand, followed by African airlines with a 6.4 per cent growth and European operators with a 3.1 per cent rise. Notably, passenger traffic between Europe and Asia expanded by 12.1 per cent, marking the highest growth among all major international routes. In contrast, Middle Eastern carriers saw international demand fall by 9.5 per cent, North American airlines posted a 2.3 per cent decline, and Asia-Pacific carriers noted a 0.7 per cent drop.

Key Domestic Market Performance

In domestic markets, global passenger traffic grew by 0.6 per cent. Growth remained positive in key countries such as Brazil, which saw domestic demand rise by 6.0 per cent, China with a 5.3 per cent increase, and Japan with a 0.9 per cent uptick. However, contractions in domestic passenger traffic took place in India, where demand declined by 6.3 per cent, followed by the United States and Australia, which each recorded a 0.5 per cent decline. (ANI)

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