Global aviation continued to grow steadily in 2025, despite ongoing operational and cost challenges. According to IATA data, global passenger traffic increased by 5.3%, closely aligned with the long-term average growth rate of 5%, while 2026 projections signal stable profitability.
Cargo Growth and Financial Pressures
Asia-Pacific led global traffic growth in 2025 and remained the strongest performing region. The region benefited from strong domestic markets and rising international demand, confirming its role as the main driver of aviation growth.
Europe maintained stable growth, while Latin America and Africa posted solid gains. North America continued to lag, affected by weaker domestic demand and operational constraints.
Capacity remained tight throughout the year. The global passenger load factor, indicating the percentage of available seating that is filled with passengers, reached 86% in August 2025, marking the highest level ever recorded. High load factors reflected strong demand but also limited aircraft availability.
Global air cargo traffic rose by 3.3% in 2025, supported by resilient global trade and strong demand for time-sensitive shipments. Growth was again led by Asia-Pacific, driven by e-commerce and technology-related goods.
Cargo performance is expected to strengthen further in 2026. Air cargo traffic is forecast to grow by 8.5%, with total revenues projected to reach $158 billion.
Despite solid demand, airlines faced rising costs. Labour and maintenance expenses increased due to wage inflation, pilot shortages and ageing fleets. Employment growth and labour productivity are both slowing, with each expected to fall by close to 2% in 2026.
Fleet availability remains one of the industry’s most persistent challenges. In 2025, a record number of aircraft were undergoing maintenance, increasing demand for spare parts and replacements. Aircraft delivery delays forced airlines to keep older aircraft in service and delay fleet renewals.
2026 Projections and Industry Outlook
Looking ahead, global passenger traffic is expected to grow by 4.9% in 2026. Asia-Pacific is projected to remain the fastest-growing region, with traffic forecast to rise by 7.3%.
Financial performance is expected to remain stable. Operating profit margins are forecast to edge up to 6.9% in 2026, while net margins are expected to remain at 3.9% and industry revenues are projected to grow by 4.5%.
Artificial intelligence is becoming increasingly important across the sector, particularly in cargo logistics, operations and data analysis. However, measurable productivity gains remain limited at a global level.
Although the airline industry is committed to achieving net-zero CO2 emissions, sustainability challenges persist. Sustainable Aviation Fuel, or SAF, is expected to account for less than 1% of total fuel use in 2026, partly due to poor alignment between CORSIA and multiple regional and national schemes, which fragments policy, increases costs and limits real emissions reductions.
As global aviation enters 2026, demand remains strong, profitability stable and structural constraints unresolved. The industry continues to balance growth with limited capacity, rising costs and slow progress on decarbonization.
What’s your take on global aviation performances in 2025? Let us know in the comments.
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