Global air passenger demand grew 5.3% in 2025, but supply chain and decarbonisation issues constrained airline capacity, says IATA.
KUALA LUMPUR: Strong global passenger demand in 2025 masked significant capacity constraints within the airline industry.
The International Air Transport Association (IATA) attributed the constraints to decarbonisation challenges and persistent supply chain issues.
IATA data shows total global air passenger demand, measured in revenue passenger kilometres, rose 5.3% compared to 2024.
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Total capacity, measured in available seat kilometres, increased by 5.2% over the same period.
The overall passenger load factor reached a record 83.6% for the full year.
International demand grew 7.1% while capacity rose 6.8%, resulting in an international load factor of 83.5%.
Domestic demand increased by 2.4% with capacity expanding 2.5%, leading to a slight dip in the domestic load factor to 83.7%.
IATA’s director general Willie Walsh said the growth returns the industry to its historical patterns post-Covid.
“The strong and continuous increase in demand puts into sharp focus two key challenges of decarbonisation and supply chain,” he stated.
Walsh emphasised that supportive government policies are needed to rapidly expand sustainable aviation fuel production.
He identified supply chain challenges as the biggest headache for airlines in 2025.
Unreliable aircraft and engine deliveries, plus maintenance constraints, cost airlines an estimated USD 11 billion.
Airlines accommodated demand by keeping older aircraft in service and filling more seats per flight.
“With load factors just shy of 84%, it’s clear that these measures were an effective band-aid and real solutions are needed,” Walsh explained.
He expressed hope that 2025 marked the low point of the supply chain crisis.
“Every new aircraft means a quieter, cleaner fleet, with more capacity and flight options,” he added. – Bernama
