IATA: Global Air Passenger Demand Falls 2.2% in May


   
Kristina Davis
DTN Refined Fuels Market Reporter

   MIAMI, FL (DTN) -- Global air passenger demand declined year on year in May 
as the conflict in the Middle East weighed heavily on international travel, 
although airlines continued to post record load factors and North American 
carriers remained in growth territory, according to data released Tuesday 
(6/30) by the International Air Transport Association (IATA).

Total passenger demand, measured in revenue passenger kilometers (RPK), fell 
2.2% from May 2025, while airline capacity, measured in available seat 
kilometers (ASK), declined 2.3%. Despite the lower traffic, the global 
passenger load factor reached a record 83.5% for the month, up 0.1% point from 
a year earlier.

International passenger demand slipped 1.6% year on year as capacity fell 2.4%, 
while domestic travel declined 3.1% with capacity down 2.1%.

"The decline was centered on carriers in the Middle East," IATA Director 
General Willie Walsh said, noting the region's 28.4% year-on-year drop marked a 
significant improvement from April's 46.6% decline. Walsh added that weaker 
domestic markets in both the United States and China also contributed to softer 
global demand.

North American airlines bucked the broader trend, reporting a 1% increase in 
international passenger demand from a year earlier. Capacity rose 0.6%, lifting 
the regional load factor to 84%, up 0.4% from May 2025.

Domestic passenger traffic painted a more mixed picture. U.S. domestic demand 
fell 1.9% from a year earlier despite capacity declining only 0.3%, resulting 
in a load factor of 81.8%, down 1.4 percentage points. China posted the largest 
decline among major domestic markets, with traffic down 6.2%, while India 
continued to lead growth with a 10.1% increase.

Walsh said passenger demand remained resilient despite elevated fuel costs, 
adding that although recent declines in crude oil prices are encouraging, 
uncertainty surrounding oil supply through the Strait of Hormuz means lower 
fuel costs may take time to flow through to airlines. The IATA Director also 
said carriers operating on thin profit margins will likely continue relying on 
higher fares to offset elevated operating expenses.




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