
by Lacey Pfalz
Last updated: 11:00 AM ET, Thu January 29, 2026
Air travel around the world saw record-high demand in 2025, but supply chain issues and decarbonization were significant challenges for the industry—and will likely continue to be challenges in the year ahead, according to new data from the International Air Transport Association (IATA).
"...The strong and continuous increase in demand puts into sharp focus two key challenges—decarbonization and supply chain," said IATA's Director General, Willie Walsh. "The first, decarbonization, will protect future long-term growth. Governments whose economies grow because of aviation and whose citizens thirst for connectivity need to provide the supportive fiscal policy framework to rapidly accelerate progress—particularly for the energy sector to grow Sustainable Aviation Fuel (SAF) production."
"The second, supply chain challenges, was the biggest headache for airlines in 2025," Walsh explained. "People clearly wanted to travel more, but 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 $11 billion."
"Airlines scrambled to accommodate the demand by keeping aircraft in service longer and filling more seats on every flight. With load factors just shy of 84%, it's clear that these measures were an effective band aid, but we need a real solution," continued Walsh. "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."
December Data: A Strong Finish to the Year
In December 2025, overall air travel demand rose 5.6 percent from December 2024. International demand grew 7.7 percent, with some regions seeing strong growth in air travel demand.
The Asia-Pacific region saw a 7.5 percent increase in demand for international travel; Europe saw an 8.4 percent increase; Latin America grew 8.2 percent; and the Middle East saw a 9.5 percent increase—all extremely positive numbers.
Yet the highest growth was in Africa, which experienced a 10.3 percent increase from December 2024.
Like much of the rest of the year, North America's demand remained slower than that of other regions: it grew 3.5 percent in December.
The Full-Year 2025 Air Travel Analysis
Full-year demand in 2025 rose 5.3 percent from 2024, while capacity rose 5.3 percent.
International demand rose 7.1 percent, outpacing the 2.4 percent growth domestic demand saw in 2025.
Asia-Pacific airlines saw a 10.9 percent rise in travel demand compared to 2024, with a 10.2 percent capacity increase. The region had the highest growth rate and the highest load factor in 2025.
European airlines saw 6 percent growth, Middle Eastern airlines reported 6.7 percent growth, Latin American airlines had 8.6 percent growth, and African airlines experienced 7.8 percent growth.
North America saw a moderate 2.1 percent rise in annual air traffic demand in 2025, the slowest growth among the regions.
Domestic Air Travel in 2025
Domestic air travel in 2025 might not have grown as rapidly as international demand, but that doesn't mean it didn't reach record highs for passenger totals.
The United States saw domestic travel drop by 0.6 percent in 2025; it was the only major market to see demand decline last year.
By comparison, Brazil experienced an 11.1 percent increase in domestic demand, followed by India's 5.2 percent and Japan's 4.8 percent.
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