The air cargo sector is regaining momentum, with Asia spearheading the recovery. Data from the International Air Transport Association (IATA) reveals a 5.8% year-on-year surge in global air freight demand in April 2025, driven by standout performance from Asia-Pacific carriers, which recorded a 10% growth.
Key Drivers of Growth
The robust recovery was fueled by seasonal shipping of fashion and consumer goods, some of which were expedited ahead of anticipated U.S. tariff adjustments. Additionally, the sector benefited from a 21.2% year-on-year decline in jet fuel prices, boosting profitability and operational capacity.
Asia-Pacific’s Leadership
Asia-Pacific carriers reported a 10% increase in demand with a 9.4% rise in capacity, reflecting sustained growth in intra-regional trade and the continued expansion of Europe-Asia routes, which achieved 11.3% growth in April, marking an uninterrupted 26-month streak of positive performance.
India’s Export Growth
India’s exporters stand to gain from this upward trend. The country’s Flash Purchasing Managers’ Index (PMI) rose to 60.0 in April, up from 59.5 in March, marking the fastest growth in eight months. This was driven by heightened international demand for services and manufactured goods, with new export orders accelerating at their strongest pace since September 2014.
Regional Air Cargo Trends
Latin American carriers achieved the highest growth at 10.1%, followed by Asia-Pacific's 10% increase. North American airlines recorded 4.2% growth, while European carriers posted a 2.9% rise. Meanwhile, West Asian airlines experienced the slowest growth, at 2.3%.
Mixed Performance Across Trade Lanes
While most international trade routes saw positive trends, certain lanes faced declines.
Europe-Asia routes experienced a strong 11.3% surge, continuing their growth streak.
Conversely, Africa-Asia traffic declined by 7.9%, and intra-European cargo fell by 8.8%.
Industry Outlook: Navigating Opportunities and Challenges
Air cargo capacity increased by 6.3% year-on-year, while freight rates showed promising signs of stabilization. Declining jet fuel prices—down 4.1% in April alone—further supported recovery efforts.
Despite these gains, challenges persist. The global manufacturing PMI rose slightly to 50.5, signaling modest expansion, but the new export orders index dipped to 47.2, remaining in contraction territory.
Willie Walsh, IATA’s Director General, expressed cautious optimism:
"April’s strong air cargo performance builds on March’s momentum. While the outlook is positive, ongoing global trade tensions and shifting policies, particularly in the U.S., necessitate flexibility and adaptability in the months ahead."
Source: https://www.business-standard.com/industry/aviation/iata-asia-leads-air-cargo-recovery-global-demand-surge-125052900938_1.html
𝐀𝐋𝐒 – 𝐓𝐡𝐞 𝐋𝐞𝐚𝐝𝐢𝐧𝐠 𝐨𝐟 𝐀𝐯𝐢𝐚𝐭𝐢𝐨𝐧 𝐋𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬
Air cargo traffic to and from the Middle East & South Asia (MESA) has fallen sharply in the last two weeks due to the effects of Eid Al-Adha holidays and the escalating conflict...
President Trump’s recent visit to the Middle East marks a strategic shift toward commercial diplomacy, prioritizing economic initiatives over traditional political engagement....
Global supply chains continued to display signs of slack in May 2025, as trade friction and tariffs reshaped procurement strategies across key regions. According to the GEP...
Businesses reliant on goods manufactured in the US and China are beginning to see relief in global supply chain bottlenecks as the world’s two largest economies reached a...
Global air freight rates increased marginally last week, according to the latest data from the TAC Index. The global Baltic Air Freight Index recorded a 0.4% rise in the week...
The second quarter of 2025 has brought significant disruptions to global freight markets, with U.S. trade policies intensifying volatility in both ocean and air cargo sectors.
In recent years, airlines prioritized the soaring demand for e-commerce shipments on trans-Pacific and Asia-Europe routes, often at the expense of traditional general air...
According to the International Air Transport Association (IATA), global air cargo traffic, measured in cargo tonne-kilometres (CTKs), increased by 5.8% year-on-year in April...
The air cargo market has witnessed a significant increase in the volume of laptops transported from Vietnam to the U.S. in recent months, as highlighted by recent data from...
After rebounding in the latter part of May, air cargo tonnages from China and Hong Kong to the US dropped back sharply in the first full week of June, according to the latest...
ALS