Global Passenger Demand Climbs 4% in July as International Travel Powers Recovery — IATA

Global air travel demand continues to show resilience, with July 2025 recording a 4% year-on-year increase in passenger traffic, according to the latest data released by the International Air Transport Association (IATA). The momentum was driven largely by international markets, which outpaced domestic growth, pointing to strong consumer appetite for cross-border travel despite broader economic uncertainties.

Solid Summer Boost for Airlines

Measured in revenue passenger kilometers (RPK), global passenger demand rose 4% compared to July 2024. Capacity, measured in available seat kilometers (ASK), also grew by 4.4%, but the average load factor — a key measure of how efficiently airlines fill available seats — dipped slightly by 0.4 percentage points to 85.5%.

“It’s been a good northern summer season for airlines,” said Willie Walsh, IATA’s Director General. “Momentum has grown over the peak season with July demand reaching 4% growth. That trend appears across all regions and is particularly evident for international travel, which strengthened from 3.9% growth in June to 5.3% in July.”

Walsh added that airlines are well-positioned to sustain this momentum, with early September flight data showing a 2% year-on-year increase in volumes after months of slowing growth.

International Travel Outpaces Domestic Markets

The sharpest gains came from international routes, where demand expanded by 5.3% year-on-year. Capacity rose slightly faster at 5.8%, keeping the load factor stable at 85.6%, though still down marginally compared to last year.

Domestic markets grew more modestly, with RPK up 1.9%, ASK up 2.4%, and load factor easing by 0.4 points to 85.2%.

Regional Winners and Losers

Asia-Pacific Leads the Pack

Asia-Pacific airlines delivered the strongest performance, with an 8.7% rise in international demand and nearly matching capacity growth. The region maintained a load factor of 83.8%, underscoring robust appetite for long-haul and intra-Asia travel.

Latin America’s Strong Momentum

Latin American carriers were another standout, posting 9.3% growth in international demand. Intra-regional traffic, particularly within South America, has been surging, although capacity growth outpaced demand, causing load factor to fall by 1.6 points to 85.8%.

Middle East Rebounds After Conflict

Middle Eastern carriers recorded 5.3% growth, bouncing back from disruptions caused by June’s regional conflict. Capacity rose by 5.6%, with load factors steady at 84.1%.

Europe and North America Steady

European carriers posted 4% growth, supported by leisure travel demand across the continent. North American carriers saw a more modest 2.4% increase, with a notable decline in traffic between North and South America (-0.8%). Still, North America maintained one of the world’s highest load factors at 88.4%.

Africa Shows Gradual Uptick

African airlines achieved a 2.8% increase in demand, with particularly strong growth on Africa–Asia routes. Notably, Africa was the only region to improve its load factor, which rose to 74.9%, though it remains the lowest globally.

Domestic Highlights: Brazil Outshines Others

Among domestic markets, Brazil was the top performer, recording a 9.4% increase in demand as air travel boomed in the region.

• Australia posted a 4.3% rise, while China grew by 3.8%.
• The United States, which accounts for the largest share of domestic RPKs worldwide, expanded by 1.5%.
• Japan saw 2.9% growth and achieved a record July load factor of 81.4% — the highest since at least 2000.

What This Means for Airlines

The data suggests airlines are entering the latter part of 2025 with stronger demand fundamentals than earlier in the year. However, the slight dip in global load factors indicates that capacity growth is outpacing demand in some regions, a trend that could pressure yields if not carefully managed.

Despite macroeconomic headwinds, consumer confidence in air travel remains strong — especially for international journeys. With early indicators showing flight volumes improving in September, airlines are optimistic about sustaining growth into the final quarter of the year.

The Bigger Picture

IATA’s July figures highlight the continuing shift toward international markets as the engine of global air travel recovery. Asia-Pacific and Latin America are driving the strongest momentum, while North America and Europe are stabilizing after years of volatility.

For Africa, the modest growth combined with improving load factors signals that the continent is gradually carving a stronger role in the global aviation ecosystem, though infrastructure and capacity constraints remain.

Bottom line: Airlines worldwide are riding a wave of summer momentum. With July’s 4% growth and international markets taking the lead, the industry enters the latter half of 2025 with cautious optimism.