“The region finished 2025 with the fastest growth rate and highest load factor of any region,” Iata said.

Capacity in the region rose 10.2% and the load factor – the percentage of available seating capacity filled with passengers – rose from 83.9% to 84.4%.

“The strong and continuous increase in demand puts into sharp focus two key challenges: Decarbonisation and supply chain,” Iata said.

The airline group called on governments to provide policies to increase sustainable aviation fuel (Saf) production.

Iata said supply chain problems were the biggest challenge for airlines last year.

“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 that are estimated to exceed US$11 billion [$18.12b].”

The group said airlines “scrambled” to accommodate demand by keeping aircraft in service longer and filling more seats on every flight.

“With load factors just shy of 84%, it’s clear that these measures were an effective band-aid, but we need a real solution,” Iata director general Willie Walsh said.

“It’s vital that 2025 proves to be the nadir of the supply chain crisis, and 2026 marks a rebound.”

Cargo tries to outwit Trump tariffs

In air cargo, global demand at the end of last year was 4.3% greater than a year earlier.

Iata said global e-commerce strength drove volumes, even as trading relationships with the US faced rising tariffs and policy uncertainty.

Air cargo adapted quickly to support global businesses and supply chains ahead of tariff impositions, Walsh said.

Global air cargo growth in 2026 was expected to moderate slightly to 2.4%, Walsh said.

The airline group said jet fuel prices averaged 9.1% lower last year than in 2024. But Iata said refiners captured more margin, offsetting part of the benefit for airlines.

John Weekes is a business journalist covering aviation and courts. He has previously covered consumer affairs, crime, politics and courts.