IATA reports that global passenger demand reached a record high in 2025, with traffic up 5.3% year-on-year and capacity rising 5.2%, pushing the average load factor to a historic 83.6%. International travel led growth (+7.1%), while domestic markets grew more modestly (+2.4%), reflecting a return to long-term growth trends after the post-pandemic rebound.
Despite strong demand, airlines faced severe capacity constraints driven by aircraft delivery delays, engine maintenance bottlenecks, and supply chain disruptions, adding an estimated $11 billion in extra costs. Airlines mitigated the impact by extending aircraft service lives and maximising seat occupancy, resulting in near-84% load factors worldwide.
Regionally, Asia-Pacific posted the fastest growth and highest load factors, while North America lagged, with weak domestic performance. IATA warns that supply chain recovery and faster progress on decarbonisation—particularly SAF production—are critical to sustaining future growth, urging governments to provide stronger policy support in 2026.
This post was published on 29 January 2026 16:58
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