LAC leads growth despite global air passenger traffic slowdown

The Latin American and Caribbean (LAC) region was the big driver of international air traffic in June, recording the highest growth among all global regions, a new report on global air travel reveals.

According to the latest ‘Air Passenger Market Analysis’ report by the International Air Transport Association (IATA), the region saw a 9.3 per cent year-on-year increase in international traffic.

IATA is a trade organisation that represents approximately 350 airlines comprising over 80 per cent of global air traffic.

With strong demand for international flights in and out of the region, and the capacity to handle the demand, Latin America and the Caribbean is the only region where growth was faster compared to May. This is also the first time since May 2022 that the Asia Pacific region did not have the highest international passenger traffic growth rate.

However, global air passenger traffic saw its slowest growth of the year in June, according to IATA. Total demand, measured in revenue passenger kilometres (RPK), was up by only 2.6 per cent compared to June 2024, the lowest year-on-year increase for 2025.

Regional contribution to industry-wide RPK growth, YoY, %.
[Source: IATA Sustainability and Economics, IATA Information and Data – Monthly Statistics]

IATA partially blamed the lower numbers on disruptions due to military conflict in the Middle East and the crash of Air India 171 on June 12, which temporarily reduced capacity between India and North America. 

While IATA says international flights between Europe and South America, in particular, are in high demand, it is not all good news for the region. The report also highlights a drop in demand for flights between North America and Central America. North American carriers saw a 0.3 per cent year-on-year fall in international demand, despite a 2.2 per cent year-on-year increase in capacity.

Still, with July and August being a peak travel period, IATA’s Director General Willie Walsh remains optimistic.

In a July 31 IATA media release, he said:

“At 84.5 per cent globally … load factors are still very strong. And with a modest 1.8 per cent capacity growth visible in August schedules, load factors over the Northern summer are unlikely to stray far from their recent historic highs.”