Global air cargo industry achieved a milestone last year, emerging as one of the strongest-performing sectors amidst economic volatility and geopolitical uncertainty. Global routes posted exceptional performance, with December demand growing at 7% year-on-year, says Willie Walsh, Director General, IATA.
CT Bureau
The Asia-Pacific Airlines led the global market with 14.5 per cent YoY growth past year. This was supported by robust intra-Asia trade and the recovery of global
supply chains. December saw an 8.4 per cent increase in demand, alongside a 6.3 per cent rise in capacity.
Latin American carriers experienced robust growth, with 12.6 per cent increase year-in-year cargo demand for the last year. December saw the highest regional growth of 10.9 per cent, while capacity expanded by as much as 8 per cent. International routes posted exceptional performance, with December demand increasing 7 per cent year-on-year. The Asia-North America corridor, the largest by volume, grew 8 per cent, continuing a 14-month expansion streak.
Looking ahead, Willie Walsh, DG, IATA, forecast, “Economic fundamentals point to another good year for air cargo—with oil prices on a downward trajectory and trade continuing to grow. There is no doubt, however, that the air cargo industry will be challenged to adapt to unfolding geopolitical shifts. The first week of the Trump administration demonstrated its strong interest in using tariffs as a policy tool that could bring a double whammy for air cargo—boosting inflation and deflating trade.”
The Europe-Middle East trade lane led all routes with a 26 per cent year-on-year surge, driven by limited ocean shipping capacity and rising e-commerce demand. The global air cargo industry entered this year on a high note, buoyed by record demand, capacity growth, and resilient trade lanes. While challenges persist, the sector could well adapt to changing market dynamics ensures a promising future for air cargo worldwide.
This performance was supported by strong demand on certain trade lanes, particularly the Europe-Middle East corridor. The lane posted a remarkable 26 per cent year-on-year increase. The region’s belly-hold capacity grew marginally, but overall capacity lagged global averages.
“Global air cargo was the standout performer in 2024, with airlines moving more air cargo than ever before. Importantly, it was a year of profitable growth. Demand, up by 11.3 per cent year-on-year, was boosted by strong e-commerce and various ocean shipping restrictions,” he added. This combined with airspace restrictions and limited capacity on some key long-haul routes to Asia, helped keep yields at exceptionally high levels. While average yields continued to soften from peaks in 2021-2022, they averaged 39 per cent higher than 2019,” he added.
Capacity, measured in ACTKs, grew by 7.4 per cent YoY last year, was driven by the recovery of belly-hold capacity. Belly-hold capacity accounted for 54.8 per cent of global cargo in 2024, while freighters contributed 45.2 per cent.
Trade lane growth
North America: North American carriers experienced the lowest regional growth at 6.6 per cent year-on-year. However, the North American region’s December performance remained steady, with demand up 5.3 per cent and capacity increasing by 2.1 per cent.
Europe: European airlines showed 11.2 per cent year-on-year demand growth in 2024, benefiting from strong e-commerce demand-trade with Asia.
