New Delhi, June 13 -- The International Air Transport Association (IATA) has announced that global air passenger demand is set to expand in 2026, but at a significantly slower pace than in recent years. Industry-wide, revenue passenger kilometres (RPK) are forecast to grow by just 2.1% year-on-year (YoY), reflecting the impact of the ongoing hostilities in the Middle East and the resulting energy shock.

According to the International Air Transport Association (IATA), the sharp increase in oil prices and the even greater surge in fuel costs weigh on both our industry and the macroeconomic environment. Global GDP growth will likely lose about half a point to around 2.5% in 2026, and inflation could rise to 5%, reducing households' purchasi...