Asia-Pacific airlines witnessed 17.6 per cent YoY demand for air cargo in July. Demand on the Asia trade lane grew by 20% YoY, while the Europe-Asia, Middle East-Asia, and Asia-Africa trade lanes rose by 18% , 16% and 16%, respectively, while capacity rose by 12% YoY, says Willie Walsh, Director General, IATA.
CT Bureau
IATA released data for global air cargo markets in July showing continuing strong annual growth in demand. Total demand, measured in cargo tonne-kilometers (CTKs), rose by 13.6 per cent compared to July 2023 levels (14.3% for international operations). This is the eighth consecutive month of double-digit year-on-year growth, with overall levels reaching heights not seen since the record peaks of 2021.
Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 8.3 per cent compared to July 2023 (10.1% for international operations). This was largely related to the growth in international belly capacity, which rose 12.8 per cent on the strength of passenger markets and balancing the 6.9 per cent growth of international freighter capacity. It should be noted that the increase in belly capacity is the lowest in 40 months whereas the growth in freighter capacity is the highest since an exceptional jump was recorded in January 2024.
“Air cargo demand hit record highs year-to-date in July with strong growth across all regions. The air cargo business continues to benefit from growth in global trade, booming e-commerce and capacity constraints on maritime shipping. With the peak season still to come, it is shaping to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends,” said Willie Walsh, Director General, IATA.
In July, Purchasing Managers Index (PMIs) for global manufacturing output indicated expansion at 50.2. The global new export orders PMI continued to hover below the 50-mark at 49.4, a marker for contraction. Industrial production stayed level in July month-on-month and global cross-border trade increased 0.7 per cent.
Inflation remained relatively stable in July in the USA, Japan, and the European Union, with inflation rates of 2.9 per cent, 2.8 per cent, and 2.8 per cent, respectively. China’s inflation rate increased 0.3 percentage points to 0.6 per cent, the highest level in five months.
Regional performance
Asia-Pacific airlines witnessed 17.6 per cent YoY demand growth for air cargo in July. Demand on the Asia trade lane grew by 19.8 per cent year-on-year, while the Europe-Asia, Middle East-Asia, and Asia-Africa trade lanes rose by 17.9 per cent, 15.9 per cent and 15.4 per cent, respectively. Capacity increased by 11.3 per cent year-on-year.
North American carriers witnessed 8.7 per cent year-on-year demand growth for air cargo in July. Growth was somewhat hampered by flight cancelations and airport closures in the USA and the Caribbean in relation to Hurricane Beryl. Demand on the Asia-North America trade lane, the largest trade lane by cargo volume, grew by 10.8 per cent year-on-year, while the North America-Europe route saw a modest increase of 5.3 per cent. July cargo capacity increased by 7.0 per cent year-on-year.
According to IATA, the Middle East carriers witnessed 14.7 per cent year-on-year demand growth for air cargo in the month of July. According to the report, the Middle East-Europe trade lane performed particularly well surging at 32.2 per cent, ahead of Middle East-Asia which grew by as much as 15.9 per cent year-on-year. July capacity increased 4.4 per cent year-on-year.
European carriers saw 13.7 per cent year-on-year demand growth for air cargo in July. The Middle East–Europe trade lane led growth, up 32.2 per cent, maintaining a streak of double-digit annual growth that originated in September 2023. The Europe–Asia route, the second largest market, was up 17.9 per cent. Within Europe also saw double-digit growth, up 15.5 per cent. July capacity increased 7.6 per cent year-on-year.
Latin American carriers saw 11.1 per cent year-on-year demand growth for air cargo in July. As with North American carriers, growth was hampered in part by flight cancelations and airport closures in the USA and the Caribbean related to Hurricane Beryl. Capacity increased 9.4 per cent year-on-year.
African airlines saw 6.2 per cent year-on-year demand growth for air cargo in July—the lowest of all regions and their lowest recorded figure in 2024. Demand on the Africa-Asia market increased by 15.4 per cent compared to July 2023. July capacity increased by 10.5 per cent year-on-year.
