Global air cargo demand continued to grow strongly during July, the International Air Transport Association (IATA) has reported. (IATA is the global representative body for the airline industry.)

“Air cargo demand hit record highs year-to-date in July with strong growth across all regions,” highlighted IATA director-general Willie Walsh. “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.”

Regarding the month of July in particular, total air cargo demand increased 13.6%, year-on-year (y-o-y), with international demand rising 14.3%. This was the eighth month in a row which recorded double-digit y-o-y growth. Overall demand reached levels not achieved since the record-setting year of 2021.

Total global air cargo capacity increased by 8.3%, y-o-y, in July, with international capacity growing by 10.1%. This capacity growth was largely the result of the increase in airliner belly-hold capacity on international routes, which came to 12.8%, y-o-y, although international dedicated freighter aircraft capacity also increased, by 6.9%. (This increase in belly-hold capacity was actually the slowest in 40 months, while the rise in dedicated freighter capacity was the highest since an “exceptional jump” in January this year.)

Key background factors for the air cargo market included the Purchasing Managers Index (PMI) for global manufacturing being 50.2 in July, signalling expansion, while the PMI for global new export orders was, at the same time, 49.4, signalling contraction. Other such factors were industrial production, which remained unchanged in July, in month-on-month terms, while global cross-border trade increased by 0.7%.

Inflation in the EU, Japan and the US remained relatively stable in July, at rates of 2.8%, 2.8% and 2.9% respectively. In China, inflation rose by 0.3 percentage points, to take it to 0.6%, which was the highest figure for five months.

Of IATA’s six regions, the one that recorded the highest y-o-y increase in air cargo demand in July was the Asia-Pacific, at 17.6%. It was followed by the Middle East (14.7%) and Europe (13.7%). Next was Latin America (11.1%) and then North America (8.7%) and Africa (6.2%).   

But Africa saw the second greatest y-o-y increase in air cargo capacity in July – 10.5%. The greatest capacity increase was in the Asia-Pacific, at 11.3%, while third place was taken by Latin America, at 9.4%. Fourth spot was occupied by Europe (7.6%), and then came North America (7%) and the Middle East (4.4%).