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Trade disruptions did not dampen total global air cargo demand, although some regions hit

1st July 2025

By: Rebecca Campbell

Creamer Media Senior Deputy Editor

     

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Despite disruptions in international trade, global total air cargo demand increased by 2.2% in May, year-on-year (y-o-y), the International Air Transport Association (IATA) has reported. (IATA is the representative body for the global airline industry.) International demand increased by 3%. Total global air cargo capacity rose by 2%, also y-o-y, with international capacity increasing by 2.6%.

“Air cargo demand globally grew 2.2% in May. That is encouraging news as a 10.7% drop in traffic on the Asia to North America trade lane illustrated the dampening effect of shifting US trade policies,” stated IATA director-general Willie Walsh. “Even as these policies evolve, already we can see the air cargo sector’s well-tested resilience helping shippers to accommodate supply chain needs to flexibly hold back, re-route or accelerate deliveries.”

Regarding wider economic factors that affected air cargo demand, in April global industrial production increased by 2.6%, y-o-y. Over the same period, air cargo demand rose by 6.8% and outpaced the global trade in goods, which came to 3.8%. The global manufacturing Purchasing Managers’ Index (PMI) fell to 49.1 in May, which indicated contraction, while the new export orders PMI stayed in contraction territory, at 48; these indices reflected the effect of the new US trade policies.

However, jet fuel prices in May were down 18.8%, y-o-y, and 4.3% lower, month-on-month.

In terms of IATA’s regions, the one that saw the strongest y-o-y air cargo demand growth in May was the Asia-Pacific, at 8.3%. Then came the Middle East (3.6%), Latin America (3.1%) and Europe (1.6%). Africa recorded a contraction of -2.1% and North America a drop of -5.6%.

As for capacity, the region which saw the greatest y-o-y increase was again the Asia-Pacific (5.7%), with the Middle East again second (4.2%). They were followed by Latin America (3.5%), Africa (2.7%) and Europe (1.5%). North America saw a fall in capacity of -3.2%.

Regarding the major international trade lanes, the one that saw the strongest y-o-y growth was Europe-Asia, at 13.4%. Then came the Middle East-Asia (10.8%), within Asia (9.1%), and North America-Europe (8.2%). The other major trade lanes all recorded y-o-y contractions, that for the Middle East-Europe being -0.9%, followed by Asia-North America at -10.7%, and Africa-Asia at -14.6%.     

Edited by Creamer Media Reporter

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