Start of summer peak in July ‘mostly positive’ for air travel, Iata states

The Middle East conflict continued to act as a drag on global air travel demand in July, new data shows.

 

Total demand was up just 0.2% year on year but up 1.2% excluding the Middle East, according to Iata figures for the month.

 

This came as capacity grew barely by 0.3% over July last year.

 

International demand fell by 0.1%, although grew by 1.5% excluding the Middle East.

 

Demand for domestic flights was up by just 0.6% as capacity increased 0.2% year on year.

 

North American carriers saw a decrease in demand of 2.3% year on year with capacity decreasing by a similar level 2.3%.

 

“The key transatlantic corridor fell by 2.2%, with notable declines in traffic from UK, France, and Spain,” Iata noted.

 

Middle Eastern airline suffered a 9.5% drop in demand, with capacity falling 5.8% year on year.

 

However, Iata added: “The decline in traffic continues to moderate after the double-digit fall earlier in the year.” 

 

Passenger traffic between Europe and Asia grew 12.1%, representing the strongest expansion of any major international corridor.

 

Iata chief economist Marie Owens Thomson said: “The peak northern summer travel season is a mostly positive story for air travel.

 

“Overall growth of 0.2% in July was achieved despite year-on-year collective declines by carriers in North America and the Middle East.  

 

“Notably, traffic through the Gulf hubs continues its recovery trajectory.

 

“Although high fuel costs, economic uncertainty and geopolitical tensions continue, carriers are expressing confidence in demand for the last part of the year with an almost 3% expansion of seat capacity in September.”

 

Dubai Airports (DXB) last week reported a passenger decline of more than 31% in the second quarter of the year to 13 million, taking first half traffic to 31.5 million. The number of aircraft movements fell by 32.1% to 150,600 during the first half of 2026, including 62,500 during the second quarter.

 

Chief executive Paul Griffiths said: "The first half of the year tested every part of the aviation system and demonstrated our resilience.

 

“As capacity steadily returns across the board, demand is responding immediately. That is particularly important for DXB, where international transfers account for a significant share of traffic.

 

“Strong performance across the airport community in recent months has left us well placed to accommodate returning demand, work closely with our airline partners, and reinforce Dubai’s position as a leading global hub."