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IATA June Data Show Capacity Growth Outpacing Passenger and Cargo Demand

Small drops in load factor underscore the urgency of predictable trade policies enabled by digital facilitation measures.

Overview

  • Global air cargo demand climbed 0.8% year-on-year in June 2025 while capacity rose 1.7%, according to IATA.
  • Air passenger demand grew 2.6% even as capacity expanded 3.4%, driving the global load factor down 0.6 percentage points to 84.5%.
  • Asia-Pacific led gains with cargo demand up 9.0% and passenger demand up 7.2%, contrasting with declines in North America and the Middle East driven by tariffs and military conflict.
  • Falling jet fuel prices and a rebound in global manufacturing supported airlines in boosting capacity despite muted demand growth.
  • IATA’s director-general urged governments to simplify and digitalize trade procedures to bolster aviation markets during ongoing tariff shifts.