KUALA LUMPUR, July 30 — Global air passenger demand, measured in revenue passenger kilometres, fell 1.7 per cent year-on-year (y-o-y) in June 2026, largely due to declines in domestic markets in China, the United States, and Japan, said the International Air Transport Association (IATA).
Its director-general Willie Walsh said the weak but improving international demand for Middle East carriers also weighed on demand in June 2026.
"People continue to travel, which is an important contributor to global economic growth.
"There is no doubt, however, that stabilising the situation in the Middle East and normalising oil supplies would improve prospects for airlines, economies, and societies the world over,” he said in a statement today.
Looking ahead, Walsh said that while performance in the Middle East improved, renewed tensions will not help the region’s recovery, and the knock-on impact of rising fuel prices will continue to burden travellers with higher airfares.
Meanwhile, IATA said that, excluding the Middle East, air passenger demand declined by 0.6 per cent y-o-y in June 2026.
On the international front, passenger demand fell by 0.9 per cent compared with June 2025. Excluding the Middle East, demand grew 1.1 per cent y-o-y in June 2026. Domestic demand contracted three per cent y-o-y.
In terms of airlines, it said Asia-Pacific airlines achieved a 0.4 per cent y-o-y increase in passenger demand, but capacity decreased 1.1 per cent y-o-y, and the load factor was 84.0 per cent, up 1.3 percentage points compared with June 2025.
"Slower growth was the result of some carriers cutting back on short-haul routes due to higher fuel prices, with capacity on international routes within Asia down 4.8 per cent," IATA said.
