GLOBAL AIR PASSENGER DEMAND GROWS 5% IN MAY DESPITE GEOPOLITICAL TENSIONS

Tue 01 July 2025:

Total air passenger demand around the globe was up 5% in May 2025 on a yearly basis, the International Air Transport Association (IATA) said on Monday.

Total air capacity, measured in available seat kilometers, was also up 5% over the same period.

The load factor was at 83.4% in May, down 0.1 percentage points versus the same month last year.

In May, international passenger demand rose 6.7%, and domestic demand was up 2.1% on a yearly basis.

IATA’s Director General Willie Walsh said: “Severe disruptions in the Middle East in late June remind us that geopolitical instability remains a challenge in some regions as airlines maintain safe operations with minimal passenger inconvenience.

“The impact of such instability on oil prices—which remained low throughout May—is also a critical factor to monitor.”

He added that consumer confidence appears to be strong with forward bookings for the peak northern summer travel season, giving good reason for optimism.

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Air cargo

The IATA also said, in a separate press release on Monday, that total air cargo demand rose 2.2% year-on-year in May, despite trade disruptions.

Air cargo capacity, measured in available cargo ton-kilometers, expanded by 2%.

Walsh said that the overall growth was encouraging news, as a 10.7% drop in traffic on the Asia-to-North America trade lane illustrated the dampening effect of shifting US trade policies.

“Even as these policies evolve, already we can see the air cargo sector’s well-tested resilience helping shippers to accommodate supply chain needs to flexibly hold back, re-route, or accelerate deliveries,” he added.

-Source: AA

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