Global aviation closed out a record-breaking 2025, but with bottlenecks yet to be resolved

Global air traffic reached record highs in 2025, driven by growth in international demand. However, airlines face serious capacity constraints, supply chain issues, and the challenge of transitioning to more sustainable aviation

(Source: Pexels)

The global airline industry closed 2025 with record-breaking passenger demand, setting new records for both traffic and load factors. According to data from the International Air Transport Association (IATA), global demand grew by 5.3% compared to 2024, while capacity increased by 5.2%, leading to an average load factor of 83.6%, the highest ever recorded for a full year.

International traffic was the main driver of growth, with a year-on-year increase of 7.1% and a record occupancy rate of 83.5%. In the domestic segment, demand rose by 2.4%, with slightly higher capacity and an average occupancy rate of 83.7%.

During December, the positive trend continued, with a year-on-year increase of 5.6% in global demand and an occupancy rate of 83.7%, confirming the strong end to the year for commercial aviation.

By region, Asia-Pacific led growth, followed by Africa, Latin America and the Caribbean, and the Middle East. Europe maintained a solid performance, while North America showed the most moderate growth of the year. In Latin America and the Caribbean, demand grew by 7.0% in 2025, with a 7.4% expansion of capacity and an occupancy factor of 83.4%.

Despite these results, the industry continues to operate under severe constraints. Airlines faced delays in the delivery of new aircraft and engines, limitations in maintenance capacity, and a significant increase in costs, estimated at more than $11 billion through 2025. To meet high demand, many companies extended the lifespan of their fleets and increased flight occupancy, measures that served as temporary solutions but do not resolve the underlying problem.

Adding to this scenario is the challenge of decarbonization. The sustained growth of air transport demands concrete progress in the production of sustainable aviation fuels and in public policies that support the transition to a more efficient industry with a lower environmental impact.

Looking ahead to 2026, the sector expects that the normalization of the supply chain will allow for the incorporation of new, more efficient aircraft, expanding the seat capacity and improving global connectivity, while remaining mindful of environmental and long-term commitments.

SOURCE
International Air Transport Association (IATA), Passenger Market Report 2025.


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