Global air cargo demand experienced a robust 4.4% year-on-year increase in March 2025, achieving the highest demand ever recorded for the month, according to the latest data from the International Air Transport Association (IATA). This growth reflects the ongoing recovery of the air freight market, with international cargo operations seeing an even greater rise of 5.5%.
Cargo capacity also expanded in March, showing a 4.3% year-on-year increase globally and a 6.1% rise in international capacity. The near-alignment of demand and capacity growth indicates a relatively balanced market, underpinned by the gradual resolution of supply chain disruptions and the enhancement of bellyhold capacity on passenger flights.
Despite persistent capacity constraints in certain regions, the overall market shows signs of stabilization. These improvements are supported by solid trade activity across major routes and a resilient performance in time-sensitive sectors like pharmaceuticals and electronics.
First Quarter Momentum
The March figures build upon steady growth observed throughout the first quarter of 2025. Key global markets have seen consistent demand increases, driven by shifts in sourcing strategies, the ongoing growth of e-commerce, and strong activity in high-value industries.
Particularly noteworthy is the resilience in trade flows across Asia-Pacific, the Americas, and parts of Europe. These regions have benefitted from favorable trade dynamics, despite lingering uncertainties in the global economy.
Regional Performance Overview
Asia-Pacific
Asia-Pacific airlines led global growth, recording a remarkable 9.6% year-on-year increase in air cargo demand for March. Capacity in the region grew by 11.3%, reflecting robust trade activity and an expanding operational footprint.
North America
North American carriers registered a 9.5% year-on-year increase in demand, driven by strong cross-border trade and high-value shipments. Capacity rose by 6.1%, signaling improved network capabilities.
Europe
European airlines posted a 4.5% year-on-year growth in demand, supported by steady economic activity and trade with neighboring regions. Capacity in Europe increased modestly, at 2.0% year-on-year.
Middle East
Middle Eastern carriers experienced a 3.2% year-on-year decline in demand, with capacity rising slightly by 0.8%. The drop may be attributed to comparisons with strong growth in early 2024, driven by disruptions to Red Sea maritime freight during that period.
Latin America
Latin American airlines saw demand grow by 5.8% year-on-year, with a corresponding capacity increase of 4.7%. Growth in the region highlights its expanding role in global airfreight logistics.
Africa
African airlines recorded the steepest decline, with a 13.4% year-on-year drop in demand. However, capacity grew by 10.5%, reflecting infrastructure improvements and efforts to capture future opportunities.
Trade Lane Analysis
The Europe-North America route emerged as the busiest trade lane in March, reflecting strong transatlantic trade flows. Similarly, the Asia-North America lane, the largest by market share, exhibited robust growth, potentially influenced by preemptive shipping to mitigate potential tariff increases.
In contrast, Europe-Middle East and Africa-Asia trade lanes experienced declines in activity, suggesting region-specific challenges.
Shifting Trade Dynamics
IATA attributed part of the surge in demand to evolving global trade patterns. These changes stem from geopolitical uncertainty and the relocation of manufacturing hubs, both of which have heightened reliance on airfreight for high-value and time-critical shipments.
As global air cargo operations continue to adapt, the record-setting performance in March serves as a strong indicator of the sector's resilience and ability to navigate complex trade environments.
Source: https://aircargoweek.com/air-cargo-demand-hits-march-record-with-4-4-percent-growth/
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