Global air travel demand in July plunged 79.8 per cent year over year, according to the International Air Transport Association (IATA). That's an improvement compared with June, when such demand dropped 86.6 per cent year over year. In July, global capacity fell 70.1 per cent and global load factor fell by 27.7 percentage points year over year to 57.9 per cent, a record low for the month.

"The crisis in demand continued with little respite in July. With essentially four in five air travellers staying home, the industry remains largely paralysed," said IATA director general and CEO Alexandre de Juniac. "Governments reopening and then closing borders or removing and then re-imposing quarantines does not give many consumers confidence to make travel plans, nor airlines to rebuild schedules."

IATA attributes the relative improvement in July global air travel demand from June to domestic travel. July domestic air travel demand dropped 57.5 per cent year over year, an improvement from June, when it declined 68 per cent. The improvement was primarily driven by China and Russia, according to IATA. Other key domestic markets, such as the US and Brazil, have seen their pace of improvement slow because of coronavirus outbreaks. Overall July domestic capacity fell 42.4 per cent year over year, and domestic load factor dropped 22.9 percentage points to 63.3 per cent.

While most international routes in July remained shuttered or had reduced flight frequency, cross-border air travel slightly improved from June, dropping 91.9 per cent year over year in July compared to 96.8 per cent in June. The improvement was primarily due to boosted cross-border air demand in Europe after the relaxing of travel restrictions within the Schengen Area in mid-June, according to IATA. Other international markets, however, showed little improvement in demand compared with June. In addition, cross-border capacity dropped 85.2 per cent year over year. Load factor fell 38.9 percentage points to 46.4 per cent.