Global passenger demand for air travel declined 0.8% year-on-year in August 2026, as a sharp downturn in Middle Eastern markets interrupted the sector’s recovery, according to data from the International Air Transport Association (IATA).

Total capacity, measured in available seat kilometres (ASK), increased 0.3% from August 2025, while the global passenger load factor fell 0.9 percentage points to 85.1%.

International demand declined 0.9%, with capacity unchanged and the load factor at 85.0%. Domestic demand fell 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. The region’s carriers reported that demand was 14.6% lower year-on-year, reversing an improving trend. Excluding the Middle East carriers, demand for air travel grew by 0.6% year-on-year in August, half the pace seen in July. With some important exceptions such as domestic China, global connectivity was generally weaker in August. The coming months will reveal whether travelers, whose purchasing power has been reduced by higher energy prices, are adjusting their travel budgets, and might be discouraged from traveling due to the prevailing geopolitical instability. In the meantime, forward schedules for October are showing cautious optimism with 2.0% growth in available seats,” said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability, and Chief Economist.

The Middle East recorded the steepest regional decline, with carriers reporting a 14.2% fall in demand and a 9.0% reduction in capacity.

The regional load factor dropped 4.8 percentage points to 79.1%.

 IATA said the deterioration reversed a gradual stabilisation trend, with traffic on Middle East-Asia routes declining 11.7% year-on-year.

European airlines recorded a 2.1% increase in demand, while capacity grew 2.8%.

Europe-Asia traffic remained strong, rising 12.2%, although transatlantic demand fell 2.4%.

Asia-Pacific carriers recorded a 0.1% decline in demand, with capacity down 0.9%.

Traffic within Asia dropped 2%, while the Asia-North America market grew 2.5%.

North American carriers reported a 1.7% decline in demand, alongside a 1.1% capacity reduction.

Latin American and African airlines both recorded 6.7% demand growth, although African capacity increased faster, rising 8.3%.

Domestic markets were mixed. Demand in Japan and the US declined, while India recorded a 7.5% contraction.

Chinese domestic travel strengthened, supported by summer travel demand.

IATA said forward schedules point to cautious optimism, with available seats for October currently expected to increase by 2%. -TradeArabia News Service