The International Air Transport Association (IATA) released its 2025 annual report on the airline industry. According to the report, overall demand for air travel in 2025 increased by 5.3% compared to 2024. International traffic grew by 7.1%, while domestic traffic rose by 2.4%. Capacity, measured in available seat-kilometers (ASK), increased by 5.2%. The passenger load factor (PLF) reached a record high of 83.6%, up 0.1 percentage points. In December 2025, overall demand grew by 5.6% year-on-year, with capacity increasing by 5.9% and the load factor at 83.7%. The report also highlights that the aviation industry faced two major challenges in 2025: decarbonization and supply chain issues. IATA Director General Willie Walsh stated that despite strong demand growth, airlines were hampered by delays in new aircraft and engine deliveries, maintenance capacity constraints, and cost increases exceeding $11 billion. He urged governments to create a favorable policy framework to accelerate the production of Sustainable Aviation Fuel (SAF) and address supply chain bottlenecks. The report also provides a regional breakdown. The Asia-Pacific region led with the strongest growth, with international traffic increasing by 10.9% year-on-year. Latin America saw a rise of 8.6%, Africa 7.8%, the Middle East 6.7%, and Europe 6.0%. North America was the only region with a decline, with traffic falling by 1.3% due to stagnation on Asia-North America routes. In air cargo, overall demand in 2025 increased by 3.4% compared to 2024. However, a year-on-year decrease in demand of 4.1% was observed in December, the worst performance among all regions. The report notes a shift in cargo flows from the Asia-North America corridor to the Asia-Europe corridor, a direct response to U.S. tariff pressures. Willie Walsh emphasized that the air cargo industry proved its resilience by adapting to support global supply chains and expressed confidence in this trend continuing.
