News #114 - Asia leads air cargo recovery with 10% growth as global demand soars

30.05.2025

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

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