Air cargo may represent one per cent of global freight volume, but its economic impact far exceeds its size. As e-commerce, global trade, and evolving supply chains reshape the world economy, air cargo is emerging as a critical driver of growth, connectivity, and opportunity says Vineet Malhotra, Co-Founder & Director, Kale Logistics Solutions.
Air cargo has long been a pillar of global trade. Representing one per cent of total freight volume, the sector generates six times its share in value for the world economy. This disproportionate impact underscores the industry’s importance at a time when trade flows,
supply chains, and geopolitical dynamics are undergoing seismic shifts.
The global economy continues to display resilience despite challenges ranging from post-pandemic recovery to political instability. In 2024, global tourism by air was valued at US$ 1.4 trillion, yet cargo remains the true value multiplier. It has played an essential role in lifting more than a billion people out of poverty over the past three decades, thanks to its contribution to trade-driven growth. However, the trading environment has become complex. The rise of protectionist policies, particularly the tariffs and executive orders, has created unpredictability. Traditional mechanisms such as the WTO struggle to keep pace when trade is leveraged for political ends. The rising number of disputes highlights the fragility of the system, with the US, the EU, and China at the heart of ongoing tensions.
IMF projects have grown across all major economies in 2025, particularly India, which is emerging as the fastest-growing region. Latin America and parts of Europe are showing signs of recovery, creating a backdrop for global trade. The Regional Comprehensive Economic Partnership, encompassing 15 Asia-Pacific nations, has become the world’s largest free trade bloc, unlocking new efficiencies and growth potential.
Air cargo is evolving to meet demands of a new consumer economy. E-commerce has become the defining driver of growth, accelerated by the pandemic and reinforced by shifting consumer behaviours. From fast-fashion pioneers, such as Inditex to digital-native brands, such as Shein, the pace of supply chain cycles has condensed, with air cargo enabling same-season or even same-week product turnover on a global scale.
Industries, such as fresh flowers in Africa or Beaujolais Nouveau wine in Europe
depend heavily on air logistics to bring products to global markets within days, supporting communities and industries.
The sector faces pressing challenges, particularly sustainability. Environmental pressures demand solutions that balance efficiency with responsibility. Yet it is important to recognise that the industry’s value extends beyond transporting goods — it sustains livelihoods, supports small-scale producers, and drives economic inclusivity.
Looking ahead, diversification rather than consolidation or chaos may define the next chapter. With China +1 strategies giving way to ‘US+1’ approaches, global supply chains are becoming more distributed. This diversification creates complexity and opportunity, positioning air cargo at the centre of an interconnected trade ecosystem. Despite geopolitical uncertainties, rising border complexities and continued disruption in conflict zones, consumer demand, and e-commerce expansion remain robust. With Southeast Asia adding 100 million annually to the consumption class — equivalent to the populations of Germany, the UK, and France combined — the appetite for goods and services will only grow.
Air cargo, therefore, stands not at a crossroads of decline, but at the threshold of a potential golden age. Growth may not match the surging rates of the late 20th century, but the opportunities ahead remain significant. The industry’s ability to adapt, innovate, and facilitate global trade will ensure it continues to deliver outsized value in shaping the future of world economy.
