Global air passenger demand increased by 0.2 per cent year-on-year in July 2026, despite declines in North America and the Middle East, according to figures released this week by the International Air Transport Association (IATA). 

Excluding the Middle East, total demand, measured in revenue passenger kilometres, rose by 1.2 per cent compared with July 2025. 

Meanwhile, total capacity, measured in available seat kilometres, increased by 0.3 per cent, while the passenger load factor slipped by 0.1 percentage points to 85.2 per cent. 

International passenger demand fell by 0.1 per cent, although it would have risen by 1.5 per cent without the Middle East. International capacity increased by 0.3 per cent, while the load factor declined by 0.3 percentage points to 85.2 per cent. 

Domestic demand performed slightly better, growing by 0.6 per cent. Capacity increased by 0.2 per cent and the load factor rose by 0.3 percentage points to 85.3 per cent. 

IATA senior vice president for sustainability and chief economist Marie Owens Thomsen described the peak Northern summer travel season as “a mostly positive story for air travel”. 

She said the overall increase was achieved despite collective year-on-year declines among carriers in North America and the Middle East, adding that traffic through Gulf hubs continued to recover. 

Although high fuel costs, economic uncertainty and geopolitical tensions remained, Owens Thomsen said airlines were “expressing confidence in demand for the last part of the year”, with seat capacity expected to expand by almost 3 per cent in September. 

Latin America and the Caribbean recorded the strongest overall regional growth in July, with passenger demand rising by 6.1 per cent. Capacity increased by 6.6 per cent, while the load factor fell by 0.4 percentage points to 85.3 per cent. 

African airlines followed with demand growth of 5.2 per cent. However, capacity rose more quickly at 7.3 per cent, pushing the region’s load factor down by 1.5 percentage points to 75.1 per cent. 

European carriers saw total demand increase by 2.1 per cent, while capacity rose by 2.3 per cent. Europe recorded the industry’s highest overall load factor at 87.7 per cent, despite a slight annual decline of 0.1 percentage points. 

Asia-Pacific airlines reported demand growth of 1 per cent alongside a 0.3 per cent rise in capacity. Their load factor increased by 0.6 percentage points to 83.7 per cent. 

In contrast, total demand among North American carriers fell by 1.2 per cent, while capacity declined by 1.8 per cent. The region’s load factor nevertheless rose by 0.6 percentage points to 87.3 per cent. 

Middle Eastern carriers recorded the steepest fall, with passenger demand down by 10 per cent and capacity declining by 6.2 per cent. Their load factor consequently dropped by 3.4 percentage points to 80.7 per cent. 

Within the international market, Latin American airlines delivered the strongest regional performance, with demand increasing by 7.1 per cent. Capacity rose by 7.2 per cent and the load factor slipped by 0.1 percentage points to 85.7 per cent. 

African airlines saw international demand rise by 6.4 per cent, although a 9 per cent expansion in capacity reduced the load factor by 1.8 percentage points to 74.1 per cent. 

European carriers recorded a 3.1 per cent rise in international demand and a 3.2 per cent increase in capacity. Their load factor fell marginally to 87.1 per cent. 

Passenger traffic between Europe and Asia grew by 12.1 per cent, making it the strongest-performing major international corridor in July. 

However, international demand among North American carriers fell by 2.3 per cent, matched by a 2.3 per cent reduction in capacity. The load factor remained unchanged at 88.2 per cent. 

Traffic on the key transatlantic corridor declined by 2.2 per cent, with notable falls in passenger numbers from the United Kingdom, France and Spain. 

Asia-Pacific airlines also saw international demand fall by 0.7 per cent. Capacity was reduced by 1.7 per cent, allowing the load factor to rise by 0.9 percentage points to 84.5 per cent. 

Meanwhile, international demand among Middle Eastern carriers declined by 9.5 per cent and capacity fell by 5.8 per cent. The load factor dropped by 3.3 percentage points to 80.9 per cent, although IATA said the decline in traffic was continuing to moderate following the double-digit falls recorded earlier in the year. 

In domestic markets, China and Brazil led growth, with demand increasing by 5.3 per cent and 6 per cent respectively. 

Capacity in China rose by 4.7 per cent, lifting its load factor by 0.5 percentage points to 83.6 per cent. In Brazil, however, capacity grew by 8 per cent, causing the load factor to fall by 1.5 percentage points to 84.1 per cent. 

Japan recorded more modest domestic demand growth of 0.9 per cent, while capacity increased by 0.4 per cent and the load factor rose to 81.8 per cent. 

By contrast, domestic demand fell by 6.3 per cent in India, 0.5 per cent in Australia and 0.5 per cent in the US. 

Capacity declined by 6 per cent in India and 1.4 per cent in the US, while Australia recorded a 1.2 per cent increase. The US maintained the highest domestic load factor among the markets covered, at 86.7 per cent.