Strong 2025 Passenger Demand Masks Ongoing Capacity Constraints - IATA

KUALA LUMPUR, Jan 29 (Bernama) -- The global air passenger market in 2025 saw strong demand and robust growth but masked ongoing capacity constraints in the airline industry due to decarbonisation challenges and supply chain issues, according to the International Air Transport Association (IATA).

The latest data from IATA revealed that total full-year global air passenger demand in 2025, measured in revenue passenger kilometres (RPK), rose 5.3 per cent compared to 2024, while total capacity, measured in available seat kilometres (ASK), was up 5.2 per cent.

The association said the overall passenger load factor (PLF) reached 83.6 per cent, up 0.1 percentage point (ppt) and a record for full-year traffic.

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It said international full-year demand in 2025 increased 7.1 per cent compared to 2024, and capacity rose 6.8 per cent, while the full-year international load factor was 83.5 per cent, a rise of 0.2 ppt on 2024. 

“This was also a record high for international PLF,” it said in a statement.

IATA said domestic full-year demand in 2025 rose 2.4 per cent compared to the prior year, while capacity expanded by 2.5 per cent and the full-year load factor averaged 83.7 per cent, down 0.1 ppt from 2024.

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Meanwhile, it said December 2025 marked a strong finish to the year, with overall demand rising 5.6 per cent year-on-year, capacity up 5.9 per cent, and a load factor of 83.7 per cent.

IATA’s director general, Willie Walsh, said air travel demand in 2025 grew by 5.3 per cent, with international demand up 7.1 per cent and domestic demand increasing by 2.4 per cent.

“This returns industry growth to align with historical growth patterns after the robust post-COVID rebound.

“The strong and continuous increase in demand puts into sharp focus two key challenges of decarbonisation and supply chain,” he said.

Walsh said decarbonisation will protect long-term growth, and governments whose economic growth is driven by aviation and whose citizens thirst for connectivity need to provide a supportive fiscal policy framework to rapidly accelerate progress, particularly in the energy sector, to expand sustainable aviation fuel (SAF) production.

“The second, supply chain challenges, was the biggest headache for airlines in 2025. While people clearly wanted to travel more, airlines were continually disappointed with unreliable delivery schedules for new aircraft and engines, maintenance capacity constraints, and resultant cost increases that are estimated to exceed US$11 billion (US$1 = RM3.93),” he said.

Walsh added that airlines scrambled to accommodate the demand by keeping aircraft in service longer and filling more seats on every flight. 

He explained that with load factors just shy of 84 per cent, it’s clear that these measures were an effective band-aid and real solutions are needed. 

“It’s vital that 2025 proves to be the nadir of the supply chain crisis, and 2026 marks a rebound. 

“Every new aircraft means a quieter, cleaner fleet, with more capacity and flight options than at any previous point in history, which is what airlines and their customers want to see,” he added.

-- BERNAMA