Economic trends4 Economic pressures continue to impact market willingness to pay for decarbonization, although the outlook appears stable. Many of the executives consulted for this report highlighted growth and economic competitiveness as key priorities, especially considering the significant expansion of the air passenger and cargo markets for 2026 and beyond. Supply chain bottlenecks continued to affect the roll-out of newer, more efficient aircraft. Within this context, the price premium of SAF remains a concern for both airlines and corporates. Nevertheless, partnerships between stakeholders continued, highlighting the potential of book- and-claim to complement regulation and boost investment in new aviation technology further. Demand for air travel and air cargo continued to grow during 2025 and into 2026, but it is increasingly uneven by region. This matters for both airport investment decisions and the pace of aviation decarbonization. Air passenger traffic In 2025, global airports handled 9.8 billion passengers, representing 3.6% growth year-on- year, according to data from Airports Council International (ACI) World.126 This marks the completion of the post-pandemic recovery phase and a return to historical growth rates, although with structural differences across regions and markets, impacting the investment and pace of decarbonization activities that airports and airlines are introducing. In absolute terms, passenger traffic in 2025 remained concentrated in Asia-Pacific (3.6 billion passengers), Europe (2.5 billion passenger) and North America (2.1 billion passengers).127 Uneven regional growth during 2025 resulted in significant year-on-year expansion in Africa (+9.6%) and the Middle East (+6.9%), both outpacing the global average. With this growth in mind, the 2025 new airline list included several entrants concentrated in these markets: –India announced three new carriers: Shankh Air, Air Kerala and Alhind Air, as its domestic market expands.128 –Two Israel-linked airlines were launched (TechAir and TUS IL). –Saudi Arabia announced the debut of three new carriers,129,130 along with the launch of Riyadh Air. ACI World projects global passenger traffic to grow by a further 3.9% year-on-year in 2026, reaching another new record of ~10.2 billion passengers. International passengers are expected to be the fastest growing segment, increasing by 4.2% year- on-year. Additional analysis by the International Air Transport Association (IATA) predicts Asia-Pacific to lead this growth (+7.3%), with North America lagging behind (+1.5%). System-wide passenger load factors are expected to reach a record high of 83.8% in 2026,131 mainly due to aircraft shortages which have constrained airlines’ capacity. These developments signal competitive expansion in regions already pursuing hub strategies. Airport development plans reinforce this trajectory. As an example, the Middle East is engaged in a multi- billion-dollar airport development programme through to 2035, including expansion at Dubai World Central and King Salman International Airport in Riyadh. North America, by contrast, is experiencing slower aviation momentum. In Q3 2025, it was the only region to record a decline in passenger traffic (-0.9%). This reflects weaker US domestic demand, a contraction in Canada-US transborder travel, as well as operational and labour constraints, 4.1 Passenger and cargo trends: uneven growth across regions ACI World projects global passenger traffic to grow by a further 3.9% year-on-year in 2026, reaching another new record of ~10.2 billion passengers. Global Aviation Sustainability Outlook 2026 33