Total global air cargo demand rose by 3.9%, year-on-year in July, the International Air Transport Association (IATA) has reported. (IATA is the global representative body for the airline industry.) International air cargo demand increased by 4.7%.

“While all regions recorded growth, airlines in [the] Asia-Pacific, Europe and North America accounted for more than 90% of the overall increase,” reported IATA senior VP sustainability and chief economist Marie Owens Thomsen. “Dedicated freighters gained market share as belly-hold traffic declined, possibly reflecting demand for larger or specialist shipments and the operational flexibility that freighters can provide.”

Total air cargo capacity increased in July by 1.7%, year-on-year. International capacity was up 1.8%. (African capacity rose by 4.1%.)

Wider economic factors in July that affected air cargo include global trade increasing by 7.5% year-on-year. The jet fuel price in July was up 56.9% year-on-year and 12.2% month-on-month. The Global Manufacturing Output Purchasing Managers’ Index declined by 0.3 points, to 52.7, while the New Export Orders Index increased to 50 points; both these signalled a supportive environment for air cargo demand.  

The region that saw the greatest year-on-year increase in air cargo demand in July was North America, at 4.8%, followed by Europe at 4.4%, and the Asia-Pacific and Latin America and the Caribbean, both at 4.1%. The Middle East saw growth of 1.7%, while the figure for Africa was 1.1%.

Regarding the major international trade lanes, the one that saw the biggest increase, year-on-year, in July, was Asia-North America, with a figure of 9.2%. Then came within Asia, at 6.1%, Europe-Asia (3.1%), and Europe-North America (2.1%). The Middle East-Asia route saw a fall of -14.1%, while the Africa-Asia route dropped by -14.7%.

“Looking ahead, the outlook remains broadly positive, supported by manufacturing activity, export orders and global trade,” highlighted Thomsen. “However, higher fuel prices, geopolitical tensions and tariff uncertainty will need to be watched carefully.”