Total July air demand, as measured in revenue passenger kilometres, increased 0.2 per cent year over year, according to the International Air Transport Association's latest monthly report.
It was the first monthly year-over-year global traffic increase since March, as the war in Iran has dampened demand. For July, excluding the Middle East, demand grew 1.2 per cent compared with July 2025, according to IATA.
July capacity, as measured in available seat kilometres, increased 0.3 per cent year over year. Load factor declined 0.1 percentage points to 85.2 per cent.
International July demand declined 0.1 per cent year over year, but excluding the Middle East, it grew 1.5 per cent, according to IATA. International capacity was up 0.3 per cent, while load factor declined 0.3 percentage points to 85.2 per cent.
July domestic traffic increased 0.6 per cent year over year, with capacity up 0.2 per cent. Domestic load factor increased 0.3 percentage points to 85.3 per cent.
Overall July demand growth "was achieved despite year-on-year collective declines by carriers in North America and the Middle East," IATA SVP of sustainability and chief economist Marie Owens Thomsen said in a statement. "Although high fuel costs, economic uncertainty and geopolitical tensions continue, carriers are expressing confidence in demand for the last part of the year with an almost 3 percent expansion of seat capacity in September."
The Middle East reported July total demand and capacity declines of 10 per cent and 6.2 per cent year over year, respectively. North America was the only other market to report declines in demand and capacity, down 1.2 per cent and 1.8 per cent, respectively.
Demand in Latin America and the Caribbean increased 6.1 per cent, with capacity up 6.6 per cent for the period. The region had the highest demand growth rate, while Africa reported the largest capacity increase, at 7.3 per cent. Demand in Europe was up 2.1 per cent, while capacity grew 2.3 per cent.
The Middle East, North America and Asia-Pacific each reported year-over-year declines in international demand and capacity for July. Latin America and the Caribbean had the largest demand growth rate for the period, at 7.1 per cent compared with a year prior, and Africa had the largest capacity growth rate at 9 per cent. Asia-Pacific load factor increased 0.9 per cent to 84.5 per cent compared with July 2025, while load factor for North America was level at 88.2 per cent. All other regions reported declines in load factor.
July domestic results by region were mixed. India traffic declined 6.3 per cent year over year, with capacity down 6 per cent. The US also reported declines in both demand (0.5 per cent) and capacity (1.4 per cent). Australia demand declined 0.5 per cent, but capacity was up 1.2 per cent. Brazil had the highest demand and capacity growth rates for the period, followed by China and Japan.
Domestic load factors declined or increased by less than 1 percentage point compared with July 2025. The US reported the largest increase, at 0.8 percentage points, to 86.7 per cent.