The decline came despite a 0.3 per cent increase in available seat capacity, suggesting that airlines expanded their operations faster than passenger demand could absorb the additional seats.
The International Air Transport Association (IATA) disclosed this in its Air Passenger Market Analysis for August 2026, released on September 30.
According to the report, the downturn affected both international and domestic markets, bringing an end to the modest recovery observed in the previous month.
“Both international and domestic traffic dropped in August, following one month of growth in July when traffic increased by less than one per cent YoY,” the report stated.
International passenger traffic declined by 0.9 per cent compared with August 2025, while domestic traffic fell by 0.5 per cent. During the period, international capacity remained unchanged, whereas domestic capacity increased by 0.7 per cent.
The industry-wide passenger load factor, which measures the proportion of available seats occupied by passengers, fell by 0.9 percentage points to 85.1 per cent, reflecting the widening gap between capacity and demand.
IATA attributed much of the overall contraction to worsening conditions among carriers in the Middle East and North America, while airlines in other regions recorded varying degrees of growth.
The Middle East experienced the sharpest decline, with passenger traffic plunging by 14.6 per cent year-on-year, compared with a 9.7 per cent contraction in July. The region’s passenger load factor also dropped by 4.9 percentage points to 78.9 per cent.
North American airlines recorded a 2.2 per cent reduction in passenger traffic, marking the region’s fourth consecutive month of contraction. The report associated the performance with weaker international demand and continued softness in the United States domestic market.
African Airlines Sustain Passenger Growth
In contrast to the downturn in the two major markets, African airlines recorded a 4.4 per cent increase in total passenger traffic in August, while international traffic carried by the continent’s airlines grew by 6.7 per cent.
The performance indicated continued expansion in passenger demand for African carriers, even as the global aviation industry faced renewed pressure.
However, the growth in traffic was accompanied by a more rapid expansion in capacity. Available seat capacity among African airlines increased by 7.2 per cent, outpacing demand growth and pushing the passenger load factor down by 2.1 percentage points to 77.5 per cent.
The figure was the lowest among the regions covered by the report, highlighting the challenge of translating rising passenger numbers into more efficient use of available seating capacity.
The report further noted that African airlines accounted for 2.2 per cent of global passenger traffic in 2025, while their share of international passenger traffic stood at 1.9 per cent.
These figures underscore the continent’s relatively small contribution to global aviation traffic, despite the growth recorded by its carriers in August.
Latin America Leads Regional Growth
Elsewhere, airlines in Latin America and the Caribbean recorded the strongest overall regional performance, with passenger demand rising by 5.3 per cent year-on-year.
Asian carriers posted a more modest increase of 1.4 per cent, while European airlines recorded growth of 0.7 per cent.
The contrasting regional performances highlighted the uneven nature of the global aviation market, with some regions continuing to attract more passengers even as others experienced sustained declines.
Despite the August contraction, global passenger traffic remained marginally positive for the year to date, recording an increase of 0.4 per cent. Available seat capacity rose by 0.1 per cent over the same period.
The figures suggest that the industry’s cumulative performance remained in positive territory, although the latest monthly decline points to continuing uncertainty over the pace of recovery in passenger demand.
Capacity Growth Expected to Continue
Looking ahead, IATA projected further growth in global scheduled seat capacity, forecasting a 1.6 per cent year-on-year increase in September and a 2.0 per cent rise in October.
The projected expansion indicates that airlines are continuing to add seats to the market, making the relationship between capacity growth and actual passenger demand a key factor in the industry’s near-term performance.
If passenger demand fails to keep pace with capacity additions, airlines could face further pressure on passenger load factors, potentially affecting operational efficiency and revenue performance.
IATA said the passenger traffic figures were compiled from data submitted by airlines across different regions, noting that historical statistics remain subject to revision.