Global air travel demand fell 0.8% in August 2026 from the same month in 2025, weighed down by a decline in Middle Eastern airlines’ traffic, according to data from the International Air Transport Association (IATA).
Demand, measured in revenue passenger-kilometres, declined despite a 0.3% year-on-year increase in global airline capacity, while the passenger load factor fell 0.9 percentage points to 85.1%. Excluding Middle Eastern airlines, global demand rose 0.6%, half the growth rate recorded in July.
Middle East records steepest decline
Middle Eastern airlines recorded the biggest decline among the regions, with total travel demand falling 14.6% year on year, while capacity declined 9.3% and the passenger load factor fell 4.9 percentage points to 78.9%.
IATA Chief Economist Marie Owens Thomsen said the decline in global demand coincided with a halt in the recovery of Middle Eastern airlines, after travel in the region returned to a decline in August.
For international flights, demand at Middle Eastern airlines fell 14.2%, as traffic followed a path of gradual stabilisation since the outbreak of the war with Iran in February. The decline in travel between the Middle East and Asia also deepened to 11.7% in August 2026, compared with an 8.6% fall in July 2026.
International flight performance varies by region
Global demand for international flights fell 0.9% year on year in August, while capacity was unchanged. Excluding the Middle East, international demand rose 1.3%.
European airlines recorded 2.1% growth in international demand, with traffic between Europe and Asia rising 12.2%, while transatlantic traffic fell 2.4%. International demand at North American airlines declined 1.7%, while demand at Asia-Pacific airlines fell 0.1%.
By contrast, airlines in Africa and Latin America each recorded 6.7% growth in international demand.
China bucks decline in domestic flights
Global domestic demand fell 0.5% year on year in August, despite a 0.7% increase in capacity, while the passenger load factor fell 1.1 percentage points to 85.3%.
India recorded the biggest decline among the domestic markets tracked by IATA, with demand falling 7.5%, while domestic travel fell 2.9% in the United States and 2% in Japan. By contrast, demand for domestic flights in China rose 5.8%, supported by summer travel, while demand grew 4.3% in Brazil and 2.3% in Australia.
Energy prices squeeze travel budgets
IATA warned that the coming months will reveal the impact of higher energy prices, which have weakened travellers’ purchasing power, as well as geopolitical instability, on travel budgets. At the same time, forward flight schedules for October showed more positive signs, with the number of available seats expected to rise 2%.
