KUALA LUMPUR, June 30 —Total air passenger demand, measured in revenue passenger kilometres (RPK), declined 2.2 per cent year-on-year (y-o-y) in May 2026, according to the International Air Transport Association (IATA).

However, it said that, excluding the Middle East, demand grew 0.7 per cent y-o-y during the month.

“Total capacity, measured in available seat kilometres (ASK), decreased 2.3 per cent y-o-y. The load factor was 83.5 per cent, an increase of 0.1 percentage point (ppt) compared with May 2025, a record high for May,” it said in a statement.

On international demand, IATA said it fell 1.6 per cent y-o-y in May 2026, but, excluding the Middle East, demand grew 3.1 per cent.

It said that capacity was down by 2.4 per cent y-o-y, while the load factor stood at 83.7 per cent, a 0.7 ppt increase compared with May 2025.

Meanwhile, domestic demand contracted 3.1 per cent compared with May 2025, with capacity decreasing 2.1 per cent y-o-y and the load factor at 83 per cent, a decrease of 0.8 ppt compared with May 2025.

IATA director general Willie Walsh said the notable 28.4 per cent y-o-y decline among carriers in the Middle East due to the impact of the conflict in  West Asia dragged overall demand down by 2.2 per cent in May 2026.

However, he said this represented a significant improvement from the 46.6 per cent decline recorded in April, demonstrating the region’s resilience.

“Notably, we also saw y-o-y contractions in demand in both North America and Asia, largely related to domestic market conditions in the United States and China,” he said.

Overall, he said May demand appeared largely resilient in the face of high fuel prices and air fares.

“While the recent sharp drop in oil prices is an encouraging development, the challenges created by the war will likely persist for some time. Oil supply through the Strait of Hormuz remains uncertain, and it is likely to take time before the benefit of lower oil prices is reflected in normalised jet fuel pricing.

“In the meantime, airlines operating with a two per cent margin will have little choice but to continue testing demand resilience with higher fares to help cover elevated fuel costs,” he said. — Bernama