A new report from the International Air Transport Association (IATA) reveals that global passenger demand increased by 4% between July 2024 and July 2025. However, its other findings highlight how Trump tariffs might be impacting air travel in North America.
The report found that industry-wide Revenue Passenger Kilometres (RPK) increased by 4.0% year-on-year (YoY). This represents an increase from the 3.3% YoY growth recorded in June, where conflict in the Middle East affected passenger journeys.
As the fallout from Trump’s tariffs continues and US consumer spending declines, domestic air traffic in the States increased by only 1.5% in July. Since the beginning of 2025, IATA has consistently ranked the US as the weakest performer in the domestic air travel space. July was no exception. Indeed, on the same day that IATA published its report, the Floridian budget airline Spirit, a high-profile domestic carrier, filed for bankruptcy for the second time this year.
Capacity growth continues to exceed demand across the globe. However, this was most pronounced in North America. Airlines in this region experienced a 3.0% increase in capacity from July 2024 to July 2025, while demand only increased by 1.9%. IATA reports that this is the sixth consecutive month this year that Passenger Load Factor (PLK) has declined for North American carriers.
Global outlook remains positive overall
All other regions demonstrated superior growth in July, with Latin America and the Caribbean top of the pile. Demonstrating 7.2% YoY growth, the region’s strong performance in international flights secured its ranking as the highest-growing region for the second consecutive month in 2025.
Willie Walsh, IATA’s Director General, commented:
It’s been a good northern summer season for airlines. Momentum has grown over the peak season with July demand reaching 4% growth.
He added:
With flight volumes showing a 2% year-on-year increase for September after five months of decelerating growth, airlines are positioned to take advantage of this market momentum into the coming months.
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