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Global total air cargo demand rose strongly in July, reports IATA

IATA director-general Willie Walsh

IATA director-general Willie Walsh

1st September 2025

By: Rebecca Campbell

Creamer Media Senior Deputy Editor

     

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The International Air Transport Association (IATA), which is the global representative body for the airline industry, has reported that global total air cargo demand grew strongly, by 5.5%, year-on-year in July, with international demand rising by 6% over the same period. Global total air cargo capacity was up 3.9%, and international capacity by 4.5%, also year-on-year.

“Most major trade lanes reported growth, with one significant exception: Asia-North America, where demand was down 1.0%, [year-on-year],” pointed out IATA director-general Willie Walsh. “A sharp decline in e-commerce, as the US de minimis exemptions on small shipments expired, was likely offset by shippers frontloading goods in advance of rising tariffs for imports to the US. August will likely reveal more clearly the impact of shifting US trade policies. While much attention is rightly being focused on developments in markets connected to the US, it is important to keep a broad perspective on the global network. A fifth of air cargo travels on the Europe-Asia trade lane, which marked 29 months of consecutive expansion with 13.5% [year-on-year] growth in July.”

As for wider economic factors that affected air cargo, in July the global goods trade increased by 3.1%, year-on-year. The jet fuel price was down by -9.1%, also year-on-year, although it was up 4.3%, month-on-month; nevertheless, so far this year, jet fuel prices have stayed below 2024 levels. The global manufacturing purchasing managers’ index (PMI) fell to 49.66 in July, signalling contraction; this was the second time so far this year that it had fallen below 50. The new export orders PMI, at 48.2, was in negative territory for the fourth month; this reflected the waning confidence resulting from the uncertainties about US trade policy.

In terms of IATA’s regions, the one that saw the strongest year-on-year air cargo growth in July was the Asia-Pacific, with a rate of 11.1%. It was followed by Africa, at 9.4%. Then came Europe (4.1%), the Middle East (2.6%), Latin America and the Caribbean (2.4%), and North America (0.7%).

Regarding cargo capacity, the Asia-Pacific again saw the strongest year-on-year growth, at 7.3%, but in this category second place was taken by the Middle East, at 5.9%. Then followed Europe (4%) and Latin America (3.8%). Africa saw a decrease in capacity of -0.1%, while the fall in North America was -0.6%.

The major trade lane which experienced the strongest year-on-year growth in demand in July was Europe-Asia (13.5%). Then came Africa-Asia (12.1%), within Asia (10.3%), North America-Europe (9.6%), Middle East-Asia (8.5%), within Europe (4%), and Middle East-Europe (0.3%). As highlighted by Walsh above, the Asia-North America trade route saw a decrease of -1%.

Edited by Creamer Media Reporter

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