Global Air Travel Capacity Eases Due To Middle East Tensions

The International Air Transport Association (IATA) has reported a slowdown in global capacity growth to 3.3% year on year in March 2026, with predictions of further slowing to 2.7% in April 2026. The adjustment is primarily linked to the war in Iran, which has forced airlines to make substantial capacity cuts due to airspace closures. Despite a strong month for passenger demand in February 2026, the conflict is expected to exert downward pressure on global seat growth. According to IATA, fuel costs have risen sharply, and air fares are already increasing. This news was first reported by AeroTime.