Global passenger air travel demand fell by 0.8% in August 2026 compared to the same month in 2025, according to the International Air Transport Association (IATA). This decline was primarily driven by a sharp drop in traffic from airlines in the Middle East. The demand is measured in paid passenger kilometers (RPK), which reflect the number of passengers multiplied by the distance they travel. Meanwhile, the supply of seats, measured in available seat kilometers (ASK), increased by 0.3% year-on-year. As a result, the average aircraft occupancy rate dropped to 85.1%, down 0.9 percentage points from August 2025. International air traffic decreased by 0.9% compared to the previous year, while capacity remained largely unchanged. Domestic air travel also saw a slight decline of 0.5%, with a 0.7% rise in available seats. However, excluding the Middle East, the overall outlook was more positive. IATA estimates that global demand would have increased by 0.6% and international traffic by 1.3% if the Middle East had not experienced a sharp decline. Airlines in the Middle East saw a significant drop in demand, with a 14.6% decrease compared to August 2025. Their capacity also fell by 9.3%, leading to an occupancy rate of 78.9%, which is 4.9 percentage points lower than the previous year. On international routes alone, demand from Middle East carriers fell by 14.2%. The decline in traffic between the Middle East and Asia worsened, with the drop increasing from -8.6% in July to -11.7% in August. Marie Owens Thomsen, deputy chief executive officer for sustainable development and chief economist at IATA, noted that the decline in Middle East carriers has "reversed an improvement trend." In contrast, European airlines saw a 0.7% increase in total traffic in August, with a 1.4% rise in capacity and an 87.5% load factor, down slightly from 88.1% the previous year. International demand for European carriers increased by 2.1%, with a 2.8% rise in capacity and a load factor of 86.8%. IATA highlighted continued growth on the Europe-Asia route, where traffic rose by 12.2%. However, transatlantic routes saw a 2.4% decline, with drops observed from markets such as France and the United Kingdom. In the Asia-Pacific region, total traffic increased by 1.4%, while Latin America and the Caribbean saw a 5.3% rise, and Africa recorded a 4.4% increase. In contrast, demand in North America fell by 2.2%. Domestic markets showed mixed results. China experienced a 5.8% increase in domestic traffic, driven by summer travel. Brazil and Australia saw rises of 4.3% and 2.3%, respectively. However, domestic traffic in India dropped by 7.5%, the United States by 2.9%, and Japan by 2%. Looking ahead, IATA remains cautious, citing concerns about weakened purchasing power due to rising energy prices and potential slowdowns in bookings caused by geopolitical instability. Thomsen noted that current booking trends for October show "cautious optimism," with an expected 2% increase in the number of seats offered.