IATA: Capacity growth continues to outpace demand in Aug-2026

IATA reported (30-Sep-2026) global demand in RPKs "slipped back into contraction" in Aug-2026, declining 0.8% year-on-year after "only one month of marginal growth". Excluding Middle Eastern carriers, global passenger traffic grew 0.6%. The passenger load factor (PLF) dropped 0.9pp but remained high at 85.1%. Traffic growth slowed across most regions month-on-month and declines "deepened" in the Middle East and North America. Capacity growth continued to outpace demand and international traffic remained below its Aug-2025 level, "driven largely by ongoing weakness among Middle Eastern carriers". Domestic traffic declined 0.5% and growth in China, Brazil and Australia was "insufficient" to offset contractions in the US, India and Japan. Domestic capacity increased 0.7% and the domestic PLF was down 1.1pp to 85.3%. IATA SVP sustainability and chief economist Marie Owens Thomsen stated: "With some important exceptions such as domestic China, global connectivity was generally weaker in Aug-2026". Ms Thomsen added: "The coming months will reveal whether travellers, whose purchasing power has been reduced by higher energy prices, are adjusting their travel budgets, and might be discouraged from travelling due to the prevailing geopolitical instability". She noted: "In the meantime, forward schedules for Oct-2026 are showing cautious optimism with 2% growth in available seats". [more - original PR - I] [more - original PR - II]