Air travel demand surged to record levels in 2025, but passengers are paying the price as airlines respond by packing flights tighter rather than restoring breathing room in their networks.
According to new data from the International Air Transport Association (IATA), global passenger demand rose 5.3% for the year, almost perfectly matched by a 5.2% increase in capacity. The result was an average passenger load factor of 83.6%, the highest ever recorded for a full year. In practical terms, that means more flights running close to full, fewer empty seats, and less flexibility when disruptions hit.
International travel led the growth, rising 7.1%, while domestic demand increased by 2.4%. December ended the year strongly, with demand up 5.6% year-on-year, confirming that passengers have returned in force.
“2025 saw demand for air travel grow by 5.3% with international demand growing by 7.1% and domestic by 2.4%,” says Willie Walsh, IATA director general. “This returns industry growth to align with historical growth patterns after the robust post-COVID rebound.”
Full flights become the default
For travellers, those “historical growth patterns” translate into something far less abstract: crowded cabins, busier airports, and almost no margin for error.
With aircraft and engine deliveries falling behind schedule and maintenance capacity under strain, airlines did not meaningfully expand supply. Instead, they kept older aircraft in service longer and pushed load factors higher, turning full flights into the new normal.
Walsh says supply chain failures added more than $11-billion in costs for airlines in 2025.
“People clearly wanted to travel more, but airlines were continually disappointed with unreliable delivery schedules for new aircraft and engines, maintenance capacity constraints, and resultant cost increases,” he says. “Airlines scrambled to accommodate the demand by keeping aircraft in service longer and filling more seats on every flight.”
At load factors just shy of 84%, even minor disruptions ripple quickly through the system. When flights are full, rebooking becomes harder, delays cascade faster, and cancellations leave passengers competing for the last available seats.
“These measures were an effective band aid, but we need a real solution,” Walsh says.
Less comfort, fewer options
The data helps explain why travellers are experiencing more friction, even when demand appears healthy. High load factors leave little room for upgrades, seat changes, or last-minute alternatives. Overbooking becomes riskier, yet more tempting, as airlines try to maximise revenue on constrained fleets.
Asia-Pacific airlines recorded the strongest international growth, with traffic up 10.9% and average load factors of 84.4%. Europe followed with 6.0% growth, while Middle Eastern carriers saw demand rise 6.7%.
North American airlines recorded the weakest performance, with growth of just 2.1% and declining load factors, suggesting capacity constraints are already curbing demand.
African airlines present a mixed picture. While the continent still had the lowest average load factor at 74.9%, it also recorded its highest figure on record and the strongest improvement of any region. Full-year traffic rose 7.8%, with December demand jumping 10.3% .
Domestic markets reached record passenger numbers, but growth slowed sharply compared to 2024. Brazil led with an 11.1% increase in demand, while the United States went backwards, shrinking by 0.6%.
India retained the highest domestic load factor at 85.2%, a figure that underlines how tightly airlines are running their networks, even in fast-growing markets.
A system under strain
IATA warns that long-term growth depends on solving two problems airlines have little control over in the short term: decarbonisation and supply chains.
“Governments whose economies grow because of aviation and whose citizens thirst for connectivity need to provide the supportive fiscal policy framework to rapidly accelerate progress,” Walsh says, pointing to sustainable aviation fuel as a priority.
For passengers, however, the immediate reality is simpler. Demand is strong, planes are full, and airlines are choosing to sweat their assets harder rather than restore comfort or resilience. Until new aircraft start arriving in volume, crowded flights are no longer a peak-season inconvenience. They are the baseline experience.