air passenger — Global air passenger demand reached record highs in 2025, with a remarkable 5.3 per cent increase compared to the previous year, as reported by the International Air Transport Association (IATA). This surge in traffic comes alongside a 5.2 per cent rise in total capacity, measured in available seat kilometres (ASK), highlighting the industry’s recovery and growth trajectory.
The overall passenger load factor, a critical measure of efficiency, rose to 83.6 per cent, an increase of 0.1 percentage points, marking a full-year record for the sector. The driving force behind this growth was international travel, which experienced a robust 7.1 per cent increase in demand over 2024, while capacity expanded by 6.8 per cent. This led to a record international load factor of 83.5 per cent, up by 0.2 percentage points.
Domestic air travel, while still growing, saw a more modest rise of 2.4 per cent in demand, with capacity increasing by 2.5 per cent. The domestic load factor averaged 83.7 per cent, slightly down by 0.1 percentage points from the previous year. The final month of the year, December, contributed significantly to this growth, with overall demand climbing by 5.6 per cent year-on-year and capacity growing by 5.9 per cent, resulting in a passenger load factor of 83.7 per cent.
Willie Walsh, IATA’s director general, noted that the 2025 demand recovery has returned to historical growth patterns following a strong post-COVID rebound. Walsh highlighted the challenges that accompany such growth, particularly in the areas of decarbonisation and supply chain management. He stressed the necessity for supportive fiscal policies from governments to accelerate the development of Sustainable Aviation Fuel (SAF) production, which is essential for the long-term viability of the aviation industry.
On the supply chain front, Walsh identified ongoing disruptions as a major headache for airlines, with costs associated with these issues estimated to exceed $11 billion. Airlines are grappling with unreliable delivery schedules for new aircraft and engines, maintenance capacity constraints, and resultant cost increases. In response, many airlines have opted to keep aircraft in service longer and maximise seat occupancy, achieving load factors just shy of 84 per cent. However, Walsh cautioned that these measures are merely temporary fixes, and a sustainable solution is urgently required to address the supply chain crisis.
Regionally, December saw significant performance variations. African airlines demonstrated exceptional momentum, with demand increasing by 12.8 per cent year-on-year, although capacity outpaced this growth at 14.1 per cent. In the Asia-Pacific region, demand rose by 6.3 per cent, closely aligned with a 6.1 per cent increase in capacity. European carriers recorded a 7.6 per cent rise in demand, with capacity up by 7.3 per cent, enhancing load factors. Meanwhile, Middle Eastern airlines also performed well, with demand increasing by 9.6 per cent and capacity up by 8.3 per cent.
North American carriers, in contrast, faced a slight decline in December demand, edging down by 0.1 per cent against a 2 per cent increase in capacity, which negatively impacted load factors. For the entire year, Asia-Pacific airlines led regional growth with traffic increasing by 7.8 per cent and capacity rising 6.5 per cent, resulting in a load factor increase of one percentage point to 84.2 per cent. European airlines experienced a full-year demand increase of 5.3 per cent, with capacity matching that growth at 5.2 per cent.
Latin American carriers also showed robust growth, with a 7 per cent increase in demand over the year, although faster capacity expansion led to a decline in load factors. North America lagged behind with a mere 0.4 per cent increase in demand, accompanied by a 2 per cent rise in capacity, marking the weakest performance among major regions.
International travel displayed remarkable resilience, with full-year international traffic rising by 7.1 per cent and capacity increasing by 6.8 per cent. December alone saw a 7.7 per cent increase in international demand, with capacity up by 7.9 per cent, leading to slightly lower load factors compared to the previous year.
Asia-Pacific airlines excelled in international growth, posting a 10.9 per cent increase in traffic with capacity rising by 10.2 per cent. European and Middle Eastern carriers also contributed to the growth narrative, with respective increases of 6 per cent and 6.7 per cent in international demand. North American international traffic, however, saw the slowest growth at 2.1 per cent, while Latin America recorded an 8.6 per cent increase albeit with declining load factors.
Domestic markets achieved record highs in passenger numbers and load factors, despite a slowdown from the previous year’s robust rebound. Brazil notably excelled, with domestic demand soaring by 11.1 per cent over the year, contrasting sharply with the United States, where domestic demand fell by 0.6 per cent and load factors experienced the most significant decline among major markets.
Japan saw the strongest improvement in domestic load factors, while India maintained the highest load factor overall despite a modest decline. The aviation industry is at a pivotal moment as it grapples with these challenges while striving to meet the soaring demand for air travel.
