India recorded the sharpest decline in domestic air passenger traffic among the major domestic aviation markets in August, with revenue passenger kilometres (RPK) falling 7.5% year-on-year, according to data released by the International Air Transport Association (IATA).
The decline follows a 5.2% contraction in July and came despite a relatively modest 1.2% reduction in capacity. The mismatch between demand and capacity resulted in a 5.4 percentage point decline in passenger load factor (PLF) to 78.7%. This was both the lowest PLF and the largest decline in load factor among the six major domestic markets tracked by IATA.
The contraction in India was among the key factors behind a 0.5% decline in global domestic passenger demand in August. Domestic capacity globally increased 0.7%, while the domestic PLF fell 1.1 percentage points to 85.3%.
Global passenger demand, measured in RPK, fell 0.8% in August compared with the same month last year. Excluding Middle Eastern carriers, however, demand increased 0.6%. Global capacity rose 0.3%, while the overall load factor declined 0.9 percentage points to 85.1%.
International passenger demand declined 0.9% year-on-year, while capacity remained flat and the international PLF fell 0.8 percentage points to 85%. Excluding Middle Eastern carriers, international demand increased 1.3%.
“Global demand for air transport contracted by 0.8% compared to August 2025 as the recovery trajectory for carriers in the Middle East was interrupted. The region’s carriers reported that demand was 14.6% lower year-on-year, reversing an improving trend,” said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist.
“Excluding the Middle East carriers, demand for air travel grew by 0.6% year-on-year in August, half the pace seen in July. With some important exceptions such as domestic China, global connectivity was generally weaker in August,” she added.
Middle East weighs on global traffic
Middle Eastern carriers recorded a 14.2% decline in demand in August, while capacity fell 9%. Their load factor dropped 4.8 percentage points to 79.1%. Traffic on Middle East-Asia routes contracted 11.7%, worsening from an 8.6% decline in July.
Asia-Pacific carriers saw demand fall 0.1%, while capacity declined 0.9%. However, their load factor improved 0.7 percentage points to 85.6%. Traffic within Asia fell 2%, while Asia-North America traffic grew 2.5%.
European carriers recorded 2.1% growth in demand, while North American carriers saw demand fall 1.7%.
Looking ahead, Thomsen said higher energy prices and geopolitical instability could influence travel budgets. However, forward schedules for October indicate cautious optimism, with available seats expected to grow 2%.