New data reveals that the air transport industry experienced a slowdown in passenger growth and a weakening of air cargo demand in June, reflecting a mixed economic and geopolitical landscape, according to the International Air Transport Association.
Industry-wide Revenue Passenger Kilometers (RPK) increased by 2.6% year-on-year (YoY), marking the slowest monthly growth rate so far in 2025.
Despite the slower growth, the Passenger Load Factor (PLF) reached a robust 84.5%, signaling the beginning of the peak summer travel season.
- Regional Performance: All regions, with the exception of the Middle East, demonstrated positive growth. Operations in the Middle East continued to be disrupted by an ongoing military conflict. While many regions saw a deceleration in growth, Latin America and the Caribbean were the sole exception, with an RPK increase that was faster in June compared to May.
- Domestic and International Markets: A slower overall industry increase was driven by mixed performances from major domestic markets. The United States, after four consecutive months of contraction, saw its traffic return to positive territory, albeit marginally. On the international front, carriers in North America, the Middle East, and Africa experienced a contraction in RPK.
Looking ahead, the number of passenger flights scheduled worldwide is projected to expand by 2.4% YoY in July and 1.8% year-on-year in August.
Air Cargo Market Faces Headwinds
The air cargo market showed signs of a slowdown, with demand, measured in Cargo Tonne-Kilometers (CTK), increasing by just 0.8% YoY. This follows a 2.2% increase in May and reflects growing market uncertainty amid a developing trade war.
- Global and Regional Trends: International CTK rose by 1.6% YoY, with most regions posting single-digit gains. Asia Pacific led this growth with a significant 8.3% YoY increase, while traffic to and from North America saw a notable decline due to recent trade measures.
- Capacity and Pricing: Global available cargo space (ACTK) expanded by 1.7% YoY, while the Cargo Load Factor (CLF) decreased by 0.4 percentage points. On the pricing side, jet fuel prices dropped by 12% year-on-year, the fourth consecutive annual decline, even as they rose 8.6% month-on-month in June. Cargo yields continued to soften, with freight rates down 2.5% YoY, though they edged up slightly month to month.
