Photo: Shutterstock Global passenger demand increased only marginally in July 2026, as airlines navigated geopolitical tensions, high fuel costs and weaker traffic in the Middle East and North America.
According to new data from the International Air Transport Association (IATA), total passenger demand, measured in revenue passenger kilometers (RPK), rose 0.2% compared with July 2025. Capacity, measured in available seat kilometers (ASK), increased by 0.3%, while the global passenger load factor reached 85.2%, down 0.1 percentage points year on year.
The overall result masks significant differences between regions. When Middle Eastern markets are excluded, global demand increased by 1.2%, highlighting the extent to which the conflict affected the industry's July performance.
International passenger demand declined 0.1% year on year in July, while capacity increased 0.3%. The international load factor stood at 85.2%, down 0.3 percentage points from the same month last year.
However, excluding Middle Eastern carriers, international demand increased 1.5%.
European airlines delivered particularly strong growth, with international demand rising 3.1%. Capacity grew by 3.2%, resulting in a load factor of 87.1%.
One of the strongest international corridors was between Europe and Asia, where passenger traffic increased by 12.1%, the biggest expansion recorded among major international markets.
Latin American carriers also reported significant growth, with international demand increasing 7.1%, while African airlines recorded a 6.4% rise.
Asia-Pacific carriers, meanwhile, saw international demand fall 0.7%, alongside a 1.7% reduction in capacity. Their load factor nevertheless increased 0.9 percentage points to 84.5%.
Middle Eastern airlines continued to face the strongest pressure. International demand for the region fell 9.5% year on year, while capacity declined 5.8%. The international load factor dropped 3.3 percentage points to 80.9%.
IATA said the decline is nevertheless moderating compared with the double-digit falls recorded earlier in the year, while traffic through Gulf hubs continues to recover.
North American carriers also recorded weaker results. International demand decreased 2.3%, matching a similar decline in capacity. The load factor remained unchanged at 88.2%.
The important transatlantic market contracted 2.2%, with notable declines involving traffic from the UK, France and Spain.
Domestic passenger demand grew 0.6% in July compared with July 2025. Capacity increased 0.2%, pushing the domestic load factor up 0.3 percentage points to 85.3%.
China remained a major source of growth, with domestic demand increasing 5.3%. Brazil recorded an even stronger 6.0% increase.
Japan posted modest growth of 0.9%, while domestic demand declined in Australia, India and the United States. India's domestic market recorded the sharpest decline, falling 6.3%, while US domestic demand decreased 0.5%.
Despite the uneven performance, IATA said the peak Northern Hemisphere summer season has been broadly positive for air travel.
Marie Owens Thomsen, IATA's Senior Vice President Sustainability and Chief Economist, said overall growth was achieved despite declines among North American and Middle Eastern carriers. She also pointed to continued recovery through Gulf hubs.
Airlines are showing confidence in demand for the final months of the year. IATA said carriers are planning an almost 3% increase in seat capacity in September, suggesting that airlines expect passenger demand to remain resilient despite economic and geopolitical uncertainty.