The International Air Transport Association (IATA) released 2025 full-year and December 2025 passenger market performance showing record high demand.
 

• Total full-year demand in 2025 (measured in revenue passenger kilometers or RPKs) rose 5.3% compared to 2024. Total capacity, measured in available seat kilometers (ASK), was up 5.2% in 2025. The overall passenger load factor (PLF) reached 83.6%, up 0.1 ppt and a record for full-year traffic.
• International full-year demand in 2025 increased 7.1% compared to 2024, and capacity rose 6.8%. The full year international load factor was 83.5%, a rise of 0.2 ppt on 2024. This was also a record high for international PLF. 
• Domestic full-year demand for 2025 rose 2.4% compared to the prior year, while capacity expanded by 2.5%. The load factor for the full year averaged 83.7%, down -0.1 ppt compared to 2024.
• December 2025 was a strong finish to the year with overall demand rising 5.6% year-on-year, capacity growing by 5.9%, and a load factor of 83.7%. 

“2025 saw demand for air travel grow by 5.3% with international demand growing by 7.1% and domestic by 2.4%. This returns industry growth to align with historical growth patterns after the robust post-COVID rebound. The strong and continuous increase in demand puts into sharp focus two key challenges—decarbonization and supply chain.

The first, decarbonization, will protect future long-term growth. Governments whose economies grow because of aviation and whose citizens thirst for connectivity need to provide the supportive fiscal policy framework to rapidly accelerate progress—particularly for the energy sector to grow Sustainable Aviation Fuel (SAF) production. 

The second, supply chain challenges, was the biggest headache for airlines in 2025. People clearly wanted to travel more, but airlines were continually disappointed with unreliable delivery schedules for new aircraft and engines, maintenance capacity constraints, and resultant cost increases that are estimated to exceed $11 billion. Airlines scrambled to accommodate the demand by keeping aircraft in service longer and filling more seats on every flight. With load factors just shy of 84%, it’s clear that these measures were an effective band aid, but we need a real solution. It’s vital that 2025 proves to be the nadir of the supply chain crisis, and 2026 marks a rebound. Every new aircraft means a quieter, cleaner fleet, with more capacity and flight options than at any previous point in history, which is what airlines and their customers want to see,” said Willie Walsh, IATA’s Director General.

Read the 2025 Passenger Market Analysis

CARGO

The International Air Transport Association (IATA) released data for full year 2025 and December 2025 global air cargo market performance showing:
 

• Full-year demand for 2025, measured in cargo tonne-kilometers (CTK), increased 3.4% compared to 2024 (4.2% for international operations). 
• Full-year capacity in 2025, measured in available cargo tonne-kilometers (ACTK), increased by 3.7% compared to 2024 (5.1% for international operations). 
• December 2025 brought the year to a close with continued strong performance. Global demand was 4.3% above December 2024 levels (5.5% for international operations). Global capacity was 4.5% above December 2024 levels (6.4% for international operations). 

Additionally, IATA noted that full-year yields fell 1.5% year-on-year. This is the smallest decline in three years as a more normal supply-demand balance is achieved and the exceptionally strong yields of COVID and post-COVID continue to taper. Despite competitive pressure capping air cargo’s pricing power, yields remain 37.2% above 2019 levels.
 
“Air cargo delivered a strong performance in 2025, with demand up 3.4% year-on-year. Global e-commerce strength drove volumes, even as trading relationships with the US faced rising tariffs, the removal of de minimis tariff exemptions, and continuing policy uncertainty. Air cargo rose to the occasion. It adapted quickly to support global businesses and supply chains as they front-loaded product deliveries ahead of tariff impositions and adjusted to rising demand within Asia and between Asia and Europe as US-Asia trade stagnated,” said Willie Walsh, IATA’s Director General. 

“Growth in 2026 is expected to moderate slightly to 2.4%, in line with historical trends. We can expect that demand will continue to be shaped by trade and geopolitical developments. Whatever trading patterns emerge, we can be confident that reliance on air cargo to keep global supply chains running will remain, with carriers responding to the challenge by deploying capacity and designing their networks for optimum flexibility,” said Walsh.  

Several factors in the operating environment should be noted:
 

• Global trade in goods grew by 2.5% annually in 2024. Year-to-date, January to November, for 2025, the index grew 4.4% (versus 2.4% of same period in 2024).
• Jet fuel prices fell 3.1% in December and averaged 9.1% lower in 2025 than in 2024. However, higher crack spreads meant refiners captured more margin, offsetting part of the benefit for airlines.

Global manufacturing sentiment strengthened in December to reach 50.9. New export orders fell slightly to 49.1, but remained below the 50-point expansion threshold, reflecting ongoing caution amid tariff uncertainty.

Read the 2025 Air Cargo Market Analysis