IATA 2025 Report Shows Record Demand Pushes Airlines Toward Expansion

The International Air Transport Association (IATA) has published its full-year 2025 air passenger market results, showing that global demand for air travel reached record levels.

Key findings

Across the industry, Revenue Passenger Kilometers (RPK), which measure actual passenger traffic, increased by 5.3 percent year over year.

Airline capacity, tracked through Available Seat Kilometers (ASK), grew slightly more slowly at 5.2 percent.

Because demand rose a bit faster than the number of seats offered, the global Passenger Load Factor (PLF) climbed to 83.6 percent, the highest annual level ever recorded, meaning planes were fuller on average than in any previous year.

Domestic and international segments follow different paths

Passenger growth continued in both domestic and international markets, but the pace was more moderate than in earlier recovery phases.

Domestic air travel expanded by 2.4 percent year over year, reflecting steady but slower growth in travel within countries.

International traffic, by contrast, rose by 7.1 percent, showing that cross-border travel remained the main engine of expansion as global connectivity continued to strengthen.

End-of-year performance confirms stable momentum

In December 2025, global passenger traffic was up 5.6 percent compared with the same month a year earlier. This was slightly below November’s 5.8 percent increase.

The monthly Passenger Load Factor (PLF) stood at 83.7 percent, just under the 83.9 percent recorded in December of the previous year.

Domestic traffic in December grew 2.2 percent year over year, though the US and India recorded declines during the month.

International traffic performed more strongly, rising 7.7 percent compared with December 2024.

Regional performance highlights strongest and weakest areas

Growth patterns varied significantly by region.

• Asia-Pacific airlines led the field, with international traffic up 10.9 percent for the full year compared with 2024, reflecting continued recovery and network expansion.
• Latin American carriers also showed strong momentum, reporting an 8.6 percent annual rise in traffic.
• African airlines followed with 7.8 percent growth.
• Middle Eastern carriers recorded a 6.7 percent increase.
• European airlines posted a 6.0 percent rise in annual traffic.
• North American airlines lagged behind other regions, with traffic increasing by only 2.1 percent over the year.

Domestic market trends show sharp contrasts between countries

Performance across major domestic markets was uneven.

• Brazil stood out with domestic traffic surging 11.1 percent year over year in 2025, far above the global average and even stronger than its 2024 growth.
• Japan also accelerated, posting 4.8 percent growth compared with the prior year.
• In China, growth slowed to 4.7 percent following an exceptionally rapid expansion in 2024.
• India experienced a similar moderation, though domestic traffic still rose a solid 5.2 percent year over year.
• Australia recorded a 2.2 percent increase, which was slower than its pace in 2024.
• The US market moved in the opposite direction, with domestic traffic declining 0.6 percent year over year, reversing the growth seen the year before.

Read our explainer on US tourism decline to learn what factors impacted the drop.

Photo by Stefan Fluck on Unsplash