Strong Passenger Demand Drives Global Air Travel Growth in 2025 Despite Capacity Constraints – IATA
Global air travel demand recorded strong growth in 2025, with passenger traffic reaching record highs, even as airlines grappled with persistent aircraft and engine supply constraints, full-year and December 2025 data released by the International Air Transport Association (IATA) has revealed.
IATA said total passenger demand rose by 5.3% in 2025 compared with the previous year, with international traffic growing by 7.1% and domestic demand increasing by 2.4%. The performance signals a return to historical growth trends following the post-pandemic rebound, but also exposes structural challenges facing the industry.
“People clearly wanted to travel more, but airlines were continually disappointed with unreliable delivery schedules for new aircraft and engines, maintenance capacity constraints, and resultant cost increases that are estimated to exceed $11 billion,” IATA Director General, Willie Walsh, said.
Airlines responded by keeping aircraft in service longer and maximising seat utilisation, pushing global load factors to nearly 84%. While effective in the short term, Walsh said the measures were only a temporary fix, stressing the need for supply chain recovery in 2026 to unlock cleaner, quieter and more efficient fleets.
International passenger markets expanded across all regions in 2025, with capacity growth broadly keeping pace. Asia-Pacific airlines led the recovery, posting a 10.9% rise in international traffic and the highest load factor globally at 84.4%. Europe followed with 6.0% growth, while Middle Eastern carriers recorded a 6.7% increase.
African airlines delivered one of the strongest performances, with annual traffic rising 7.8% and December demand surging 10.3% year-on-year. Capacity increased by 6.5%, lifting the continent’s load factor to a record 74.9%, the strongest improvement of any region, despite remaining the lowest globally.
IATA noted that alongside supply chain challenges, decarbonisation remains a critical priority. Mr. Walsh called on governments to support aviation growth through policies that accelerate sustainable aviation fuel (SAF) production, warning that long-term growth depends on progress toward net-zero emissions. The association expressed hope that 2025 would mark the low point of the supply chain crisis, with 2026 expected to deliver improved aircraft availability, expanded capacity and better service options for travellers worldwide.
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