The International Air Transport Association (IATA) warned that a fragile and uncertain economic environment, political shocks and terrorist attacks all stand to contribute to softening air travel demand in its monthly report on the state of the air transport industry, released Thursday. Although global passenger traffic data for June showing that demand (measured in revenue passenger kilometers or RPKs) rose by 5.2 percent compared with the same period a year ago, the upward trend in seasonally adjusted traffic has moderated since January, it said. June capacity (available seat kilometers or ASKs) increased by 5.6 percent and load factor slipped 0.3 percentage points, to 80.7 percent.

June international passenger demand rose 5 compared with June 2015. All regions recorded growth, led by airlines in Latin America. Meanwhile, capacity climbed 6.4 percent, causing load factor to slide 1.1 points, to 79.4 percent.

Of all the regions IATA examined, Europe saw the weakest rise in demand at 2.1 percent, reflecting what the association attributed to terrorism fears. While demand tends to recover reasonably quickly after such events, said IATA, the repeated nature of the attacks could result in more lasting downward pressure on demand. Capacity climbed 3.4 percent and load factor slipped 1.1 points, to 83.3 percent.

“The latest figures show that aviation and aviation-related tourism delivers $2.7 trillion in economic impact and supports some 62.7 million jobs worldwide,” said IATA director general Tony Tyler. “It is a powerful force for good in our world. It is too soon to know whether recent terrorist attacks will have a long-term negative influence on demand, nor what will be the impact of Brexit and the events in Turkey. But it is vital that governments recognize and support aviation’s ability to contribute to global economic well-being and better understanding across cultural and political borders.”