Global air travel dips in June as domestic markets weaken

IATA Director General Willie Walsh said people continue to travel despite economic and geopolitical pressures, underlining aviation's role in supporting global growth.

Global passenger demand for air travel declined in June 2026, with weaker domestic markets in several major economies outweighing steady international travel growth outside the Middle East, according to the International Air Transport Association (IATA).

The industry recorded a 1.7% decline in global passenger demand, measured in revenue passenger kilometres (RPK), compared with June 2025. Airline capacity fell by 1.3%, while the global load factor slipped to 84.2%.

Domestic markets drive global slowdown

IATA said the biggest drag on overall performance came from domestic markets in China, the United States and Japan. Domestic passenger demand fell 3.0%, with capacity down 2.4% and the average load factor easing to 84.0%.

China recorded the sharpest decline among major domestic markets, with traffic dropping 5.2%, followed by Japan (-3.8%), the United States (-1.2%) and India (-0.5%). Australia's domestic market remained stable, while Brazil was the only major market to post growth, with demand increasing 0.9%. IATA said higher fuel prices were likely contributing to weaker domestic demand in several countries.

International travel remains resilient

International passenger demand declined 0.9% year-on-year, although excluding the Middle East it increased 1.1%, showing continued strength across many global routes. European airlines reported 1.5% growth in international traffic, supported by strong demand on the Europe–Asia corridor, which expanded 11%, the fastest growth among major international routes. Latin American airlines posted the strongest international growth at 3.5%, while African carriers recorded a 6.7% increase in demand. Asia-Pacific airlines achieved modest growth of 0.4%, although some carriers reduced short-haul services within Asia because of rising fuel costs. North American airlines saw international demand fall 1.0%.

Middle East recovery still faces challenges

Middle Eastern airlines continued to experience the steepest decline, with international demand dropping 14% compared with June last year. Capacity also fell by 11%, while the regional load factor declined to 76.3%.

IATA said the figures continue to reflect the impact of the Iran conflict, although the pace of decline has eased steadily since April as airline operations gradually return to normal and comparisons with last year's disrupted traffic become less severe.

Fuel prices remain a concern

IATA Director General Willie Walsh said people continue to travel despite economic and geopolitical pressures, underlining aviation's role in supporting global growth.

He said the industry's recent performance was heavily influenced by weaker domestic markets and the continuing effects of tensions in the Middle East. Walsh added that stabilising the region and restoring normal oil supplies would improve prospects for airlines, reduce pressure from higher fuel costs and help ease airfares for travellers.