Global air passenger demand fell by 0.8% year-on-year in August 2026, as a sharp contraction among Middle Eastern airlines outweighed growth elsewhere, according to IATA. Excluding the region’s carriers, demand increased by 0.6%, half the pace recorded in July.
Total traffic, measured in revenue passenger kilometres, declined while capacity increased by 0.3%. The global passenger load factor fell by 0.9 percentage points to 85.1%. International demand decreased by 0.9%, while domestic traffic slipped by 0.5%.
Middle Eastern airlines recorded a 14.6% fall in overall demand, reversing an improving trend. Their international traffic declined by 14.2%, with IATA linking the renewed weakness to disruption associated with the conflict in the region. North American carriers also reported lower overall demand, down 2.2%.
European airlines’ international traffic grew by 2.1%, although capacity expanded faster, at 2.8%. Europe–Asia traffic increased by 12.2%, contrasting with a 2.4% decline on transatlantic routes. African and Latin American airlines each recorded international demand growth of 6.7%, while Asia-Pacific carriers saw a marginal 0.1% decrease.
Domestic markets showed considerable differences. China’s traffic rose by 5.8%, supported by summer travel, while India recorded a 7.5% contraction. US domestic demand fell by 2.9% and Japan’s by 2.0%.
IATA chief economist Marie Owens Thomsen said higher energy costs and geopolitical uncertainty could weigh on travellers’ budgets in the coming months. Nevertheless, forward schedules indicate a 2.0% increase in available seats for October, suggesting cautious optimism among airlines.