Global air passenger demand falls 0.8% in August as Middle East slump deepens

Global air passenger demand fell 0.8% year-on-year in August as a deepening downturn at Middle Eastern airlines interrupted the region’s recovery, the International Air Transport Association (IATA) said Wednesday.

Total demand, measured in revenue passenger kilometers, declined despite a 0.3% increase in capacity, IATA said.

The passenger load factor, which measures how much available capacity was filled, fell 0.9 percentage points to 85.1%.

Excluding Middle Eastern carriers, global demand increased 0.6%, half the growth rate recorded in July.

“Global demand for air transport contracted by 0.8% compared to August 2025 as the recovery trajectory for carriers in the Middle East was interrupted,” said Marie Owens Thomsen, IATA’s senior vice president for sustainability and chief economist.

Middle Eastern airlines recorded a 14.6% decline in overall passenger demand, while capacity fell 9.3%.

Owens Thomsen said forthcoming data would show whether higher energy prices, which have reduced travelers’ purchasing power, and geopolitical instability were prompting consumers to adjust their travel budgets.

Forward schedules for October indicate cautious optimism, with available seats projected to increase 2%, she added.

International demand weakens

International passenger demand fell 0.9% year-on-year, while capacity was unchanged, IATA said. Excluding Middle Eastern carriers, international demand rose 1.3%.

Middle Eastern airlines’ international traffic dropped 14.2%, reversing the gradual stabilization seen since the Iran war began in February, according to IATA.

The contraction on Middle East-Asia routes deepened to 11.7%, compared with an 8.6% decline in July.

European carriers recorded a 2.1% increase in international demand, while traffic on Europe-Asia routes rose 12.2%.

Transatlantic traffic fell 2.4%, with declines across several markets, including the UK and France.

International demand at North American airlines fell 1.7%, while Asia-Pacific carriers registered a 0.1% decline.

African and Latin American airlines both reported international demand growth of 6.7%.

China bucks domestic downturn

Domestic passenger demand fell 0.5% in August despite a 0.7% increase in capacity, IATA said.

The domestic load factor declined 1.1 percentage points to 85.3%.

India recorded the sharpest contraction among the domestic markets covered, with demand falling 7.5%.

US domestic traffic declined 2.9%, while Japan’s fell 2%.

China’s domestic demand rose 5.8%, supported by summer travel, while Brazil and Australia recorded increases of 4.3% and 2.3%, respectively.