IATA: Passenger air travel demand fell 0.8% in August

According to the International Air Transport Association (IATA), total demand, measured in revenue passenger-kilometres (RPKs), declined 0.8 per cent compared with August 2025. 

Excluding Middle Eastern airlines, air travel demand increased 0.6 per cent year over year in August -- half the pace recorded in July.

“Global air travel demand contracted by 0.8 per cent compared with August 2025, as the recovery trajectory of Middle Eastern airlines was interrupted,” said Marie Owens Thomsen, IATA’s senior vice president for sustainability and chief economist, in a press release. 

“Carriers in the region reported a 14.6 per cent year-over-year decline in demand, reversing the improvement trend observed previously.”

Weaker global connectivity in August

“With a few notable exceptions, such as China’s domestic market, global connectivity was generally weaker in August,” she continued. 

“The coming months will reveal whether travellers—whose purchasing power has been eroded by higher energy prices—adjust their travel budgets and may be discouraged from travelling by current geopolitical instability. 

Meanwhile, forward flight schedules for October point to cautious optimism, with seat capacity up 2.0 per cent.”

Growth in Latin America and Africa

While Middle Eastern airlines recorded a 14.2 per cent year-over-year decline in demand, carriers in Latin America and Africa posted increases of 6.7 per cent.

European carriers, meanwhile, reported a 2.1 per cent year-over-year increase in demand. North American airlines recorded a 1.7 per cent year-over-year decline in demand.

Domestic markets decline

Domestic passenger traffic fell 0.5 per cent in August 2026 compared with the same month in 2025. Domestic traffic declined in Japan and the United States, while India recorded a particularly sharp contraction of 7.5 per cent.

By contrast, China’s domestic traffic strengthened, supported by demand for summer travel.