Global passenger demand for air travel fell 0.8% year-on-year in August 2026, as a sharp decline in Middle Eastern markets interrupted the industry’s recovery, according to the International Air Transport Association (IATA).
Global capacity, measured in available seat kilometres (ASK), increased 0.3% from August 2025, while the passenger load factor fell by 0.9 percentage points to 85.1%.
International passenger demand declined 0.9%, with capacity unchanged and the load factor standing at 85.0%. Domestic demand dropped 0.5%, despite a 0.7% increase in capacity.
“Global demand for air transport contracted by 0.8% compared to August 2025 as the recovery trajectory for carriers in the Middle East was interrupted,” said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist.
She said Middle Eastern airlines recorded a 14.6% year-on-year decline in demand, reversing an improving trend. Excluding Middle Eastern carriers, global air travel demand increased 0.6% in August, although that was half the growth recorded in July.
Thomsen said global connectivity was generally weaker during the month, with some notable exceptions including domestic China. She added that the coming months would show whether higher energy prices and geopolitical uncertainty affect passengers’ travel spending.
Forward schedules for October currently indicate a more cautious outlook, with available seats expected to rise 2%.
The Middle East recorded the largest regional decline. Airlines in the region reported a 14.2% fall in demand, while capacity contracted 9.0%. The regional load factor declined 4.8 percentage points to 79.1%.
IATA said the deterioration reversed a period of gradual stabilisation. Traffic between the Middle East and Asia fell 11.7% compared with August 2025.
European airlines, by contrast, recorded 2.1% demand growth, while capacity increased 2.8%. Europe-Asia traffic remained strong, rising 12.2%, although transatlantic demand declined 2.4%.
Asia-Pacific carriers reported a 0.1% decline in demand, with capacity down 0.9%. Traffic within Asia fell 2%, while demand on the Asia-North America route increased 2.5%.
North American airlines recorded a 1.7% drop in demand alongside a 1.1% reduction in capacity.
Latin American and African airlines both posted 6.7% demand growth. African capacity, however, expanded at a faster rate, increasing 8.3%.
Domestic markets produced mixed results. Demand declined in Japan and the United States, while India recorded a 7.5% contraction. Domestic travel in China strengthened, supported by summer holiday demand.
IATA said the outlook for the coming months remains cautiously positive, with forward schedules indicating that global available seats could increase by 2% in October.
Source: ZAWYA