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Strong Passenger Demand Continues Amid Capacity Constraints

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Strong Passenger Demand Continues Amid Capacity Constraints
Overall, IATA’s 2025 data underscores steady growth in passenger demand, while highlighting the continued need to resolve supply chain constraints and advance sustainability initiatives to support future capacity and connectivity.
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Global Air Passenger Demand Grows in 2025 Amid Capacity and Supply Chain Pressures

Global passenger demand up 8.1 per cent in November 2024, driven by international markets, ETTravelWorld

International Air Transport Association (IATA) has released its full-year and December 2025 passenger market performance data, highlighting continued growth in air travel demand alongside persistent capacity and supply chain challenges.

Total passenger demand in 2025, measured in revenue passenger kilometres (RPKs), increased 5.3% compared to 2024. Capacity, measured in available seat kilometres (ASKs), rose 5.2%, while the average passenger load factor (PLF) reached 83.6%, up 0.1 percentage points year on year.

International passenger demand grew 7.1% in 2025, with capacity expanding 6.8%. The international load factor averaged 83.5%, up 0.2 percentage points from 2024.

Domestic demand rose 2.4%, while capacity increased 2.5%. The domestic load factor averaged 83.7%, down 0.1 percentage points from the previous year.

December 2025 closed the year with overall demand rising 5.6% year on year, capacity growing 5.9%, and a load factor of 83.7%.

Willie Walsh, IATA’s Director General
William M. Walsh

Commenting on the results, Willie Walsh, Director General of IATA, said demand growth in 2025 was more closely aligned with long-term industry trends following the post-pandemic recovery. He highlighted two ongoing challenges: the need to advance decarbonisation through supportive policy frameworks, particularly to scale Sustainable Aviation Fuel (SAF), and ongoing supply chain disruptions that are affecting aircraft deliveries, engine availability, and maintenance capacity. These constraints led airlines to extend aircraft utilisation and operate with higher seat occupancy while managing rising costs.

Air Passenger Market in Detail – December 2025

December 2025 (% year-on-year)World ShareRPKASKPLF (%-pt)PLF (Level)
Total Market100%5.6%5.9%-0.283.7%
Africa2.2%12.8%14.1%-0.975.6%
Asia Pacific34.5%6.3%6.1%0.283.6%
Europe26.6%7.6%7.3%0.286.7%
Latin America & Caribbean5.4%6.8%6.8%0.083.1%
Middle East9.5%9.6%8.3%1.081.5%
North America21.8%-0.1%2.0%-1.782.9%

Air Passenger Market in Detail – Full Year 2025

2025 (% year-to-date)World ShareRPKASKPLF (%-pt)PLF (Level)
Total Market100%5.3%5.2%0.183.6%
Africa2.2%9.4%8.3%0.775.3%
Asia Pacific34.5%7.8%6.5%1.084.2%
Europe26.6%5.3%5.2%0.184.8%
Latin America & Caribbean5.4%7.0%7.4%-0.483.4%
Middle East9.5%6.8%5.9%0.781.5%
North America21.8%0.4%2.0%-1.382.9%

Regional International Passenger Markets

Full-year international traffic increased 7.1% in 2025, while capacity rose 6.8%. In December, international demand grew 7.7%, capacity increased 7.9%, and the load factor declined 0.1 percentage points to 83.9%.

  • Asia-Pacific airlines recorded a 10.9% increase in international traffic for the full year, with capacity up 10.2% and a load factor of 84.4%.

  • European carriers saw traffic rise 6.0%, capacity increase 5.9%, and a load factor of 84.1%.

  • Middle Eastern airlines reported 6.7% traffic growth, a 5.8% capacity increase, and an 81.6% load factor.

  • North American airlines posted 2.1% traffic growth, capacity up 2.4%, and a load factor of 83.9%.

  • Latin American airlines recorded 8.6% traffic growth, a 10.2% capacity increase, and an 83.6% load factor.

  • African airlines saw traffic increase by 7.8%, capacity rise by 6.5%, and load factor reach 74.9%.

Domestic Passenger Markets

Global Airlines Facing $11 Billion Loss in 2025 Due to Supply Chain Woes: IATA Report, ETInfra

Domestic passenger demand reached new highs in 2025, though growth moderated relative to 2024. Brazil recorded the largest increase in domestic RPKs (11.1%), while the United States domestic market declined 0.6%. Japan recorded the largest improvement in load factor, while the United States and India saw declines, though India continued to report a comparatively high average load factor.

Domestic Markets – December 2025

MarketWorld ShareRPKASKPLF (%-pt)PLF (Level)
Domestic (Total)37.2%2.2%2.7%-0.483.5%
Australia0.8%2.9%6.4%-2.882.2%
Brazil1.2%11.0%9.1%1.584.6%
China P.R.11.3%6.7%5.5%0.981.9%
India1.7%-3.5%-2.9%-0.588.2%
Japan1.0%1.3%-2.0%2.679.8%
United States13.6%-2.0%0.7%-2.382.5%

Domestic Markets – Full Year 2025

MarketWorld ShareRPKASKPLF (%-pt)PLF (Level)
Domestic (Total)37.2%2.4%2.5%-0.183.7%
Australia0.8%2.2%2.1%0.081.2%
Brazil1.2%11.1%9.3%1.483.3%
China P.R.11.3%4.7%2.8%1.684.2%
India1.7%5.2%6.7%-1.285.2%
Japan1.0%4.8%0.4%3.481.4%
United States13.6%-0.6%1.7%-1.982.1%

Overall, IATA’s 2025 data underscores steady growth in passenger demand, while highlighting the continued need to resolve supply chain constraints and advance sustainability initiatives to support future capacity and connectivity.

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Written by
Priyal Dutta

I create compelling stories that showcase the travel, hospitality, and lifestyle industries. At Safari India, I explore industry trends, write insightful articles, and produce content that informs and engages readers. With a talent for storytelling and a strategic approach, I strive to inform, inspire, and spark meaningful conversations through my work.

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