✈️ Global Air Travel Demand to Slow to 2.1% in 2026: IATA

Global air passenger demand will expand at a slower pace in 2026 due to Middle East hostilities, an energy shock, and rising oil prices. Global GDP growth is expected to slow to ~2.5% with inflation rising to 5%. • Overall Figures: Global Revenue Passenger Kilometres (RPK) forecast to grow by just 2.1% YoY. • Asia Pacific: Expected to grow by 5.1%, becoming the largest contributor to global traffic growth by accounting for more than half of the total gain. This regional growth is highly relevant to Sri Lanka's tourism and hospitality sectors, supporting connectivity and arrivals despite global headwinds. • Middle East & Europe: Middle East RPK projected to sharply contract by 11.4% due to airspace limitations. Europe is forecast to grow by 2.8%, partially benefiting from rerouted Middle Eastern long-haul traffic. • Other Regions: Africa leads growth at 10.0% (from a low absolute level), Latin America is projected to grow by 5.0%, and North America is limited to 0.8% growth due to a slowing US economy.