The International Air Transport Association (IATA) has released its latest traffic figures for June, revealing a 1.7% decline in global passenger demand compared to the same month last year. Measured in revenue passenger kilometers (RPK), this marks a notable slowdown in the industry's post-pandemic recovery. The drop is largely attributed to weakened domestic markets in several major economies and persistent geopolitical tensions in the Middle East, which continue to disrupt international travel patterns. Breaking down the numbers, capacity—expressed in available seat kilometers (ASK)—fell by 1.3% year-on-year, while the average load factor slipped to 84.2%, down 0.4 percentage points. Domestic markets were particularly affected, with RPKs down 3.0% and capacity down 2.4%. The load factor for domestic travel stood at 84.0%, a 0.5-point decline. IATA points to rising fuel prices as a key factor, especially in China, the United States, and Japan, where domestic demand has softened. In contrast, Brazil showed resilience, with sustained demand despite the broader trend. Regional variations are stark. Africa saw the strongest growth, with demand up 3.8% and capacity up 4.7%, though its load factor remains lower at 73.9%. Asia-Pacific experienced a 2.0% drop in RPKs, with capacity down 2.1% and a load factor of 83.1%. Europe posted a modest gain of 0.8% in demand and 1.4% in capacity, achieving a high load factor of 87.5%. North America saw a 1.1% decline in RPKs, with stable capacity and a load factor of 86.1%. The Middle East, however, suffered the most severe contraction: demand plummeted 13.9%, capacity fell 11.3%, and the load factor dropped 2.3 points to 76.1%. IATA notes that the effects of the war in Iran continue to distort year-on-year comparisons, although the pace of decline has moderated since spring. Willie Walsh, IATA's Director General, commented that the recovery for Middle East carriers remains fragile, with renewed tensions and higher fuel prices hindering progress. He added that these factors are translating into higher fares for travelers. Despite the overall decline, IATA emphasizes that people are still flying, contributing to global economic growth. The association, which represents over 370 airlines accounting for about 85% of global air traffic, suggests that stabilizing the Middle East and normalizing oil supplies would significantly improve airline prospects. It also highlights the importance of monitoring domestic markets, which represented 37.2% of total traffic in 2025. The data remains provisional and subject to revision.