The International Air Transport Association (IATA) has reported a 2.2% year-on-year increase in global air cargo demand for May 2025, reflecting the sector’s resilience in the face of geopolitical and policy-related headwinds. International air cargo demand grew even more strongly, up 3.0% year-on-year, while available cargo capacity increased 2.0%, indicating sustained operational strength across markets.
Regional Performance Overview
Asia-Pacific led global growth, posting an 8.3% increase in cargo demand.
North America experienced the sharpest contraction, with demand down 5.8%, largely due to a 10.7% decline in volumes on the Asia–North America lane.
Europe registered moderate growth of 1.6%, as did the Middle East (+3.6%) and Latin America (+3.1%).
Africa saw a 2.1% year-on-year decline in cargo volumes.
Key Trade Lane Performance (YoY)
Market Dynamics and Contributing Factors
Jet fuel prices in May were 18.8% lower year-on-year, contributing to lower operating costs for carriers.
Air cargo demand growth (6.8%) outpaced the 3.8% growth in global goods trade in April, highlighting the growing reliance on airfreight amid maritime constraints and route diversions.
Global manufacturing activity remained subdued, with the PMI at 49.1, indicating contraction. Export order sentiment also declined, with the PMI sub-index at 48.0.
Industry Outlook
Commenting on the results, Willie Walsh, Director General of IATA, emphasized the sector’s adaptability in the face of trade disruptions and shifting regulatory landscapes.
“Air cargo continues to demonstrate impressive flexibility. Airlines are adjusting networks and rerouting shipments to ensure supply chain continuity despite policy shifts and regional challenges,” Walsh said.
He noted that while structural challenges remain—including weak global manufacturing and trade policy uncertainty—air cargo has proven instrumental in maintaining supply chain stability and responding to demand surges, particularly across Asia and the Middle East.
Conclusion
May’s performance underscores air cargo’s strategic importance in global trade, especially amid evolving policy landscapes and geopolitical friction. With sustained growth in key trade corridors and the ability to adapt quickly, the sector continues to outperform expectations in volatile market conditions.
Source: https://www.iata.org/en/pressroom/2025-releases/2025-06-30-01/
𝐀𝐋𝐒 – 𝐓𝐡𝐞 𝐋𝐞𝐚𝐝𝐢𝐧𝐠 𝐨𝐟 𝐀𝐯𝐢𝐚𝐭𝐢𝐨𝐧 𝐋𝐨𝐠𝐢𝐬𝐭𝐢𝐜𝐬
President Donald Trump announced on Wednesday via Truth Social that the United States and Vietnam have reached a framework agreement for a new bilateral trade deal, outlining...
In a world increasingly shaped by volatility, uncertainty, and complex global dynamics, the question arises: Are we simply adapting to disruption—or reengineering resilience...
Amid rapid intraregional trade growth, accelerated infrastructure investment, and sweeping digital transformation, the second edition of transport logistic Southeast Asia...
The escalating trade tensions between the United States and the European Union—exemplified by the imminent implementation of a 20% baseline tariff on EU imports beginning...
Vietnam’s prominence as a global manufacturing hub is further evidenced by its growing stature in the electronics and high-tech sectors. In 2024, exports of computers, electronics,...
Global air cargo demand continued its upward trajectory in May 2025, demonstrating resilience amid escalating trade tensions, including the imposition of steep U.S. tariffs...
Air cargo demand on the critical Asia-to-North America trade lane declined sharply by 10.7% year-on-year in May 2025, following the U.S. government's suspension of the de...
Air cargo rates have shown notable stability following recent market volatility, with the latest data from the TAC Index reporting only a “relatively modest” weekly decline.
BySTAT Times|28 June 2025 2:45 PM Air cargo tonnages from Middle East & South Asia (MESA) origins have rebounded partially in the third week of June after falling sharply...
ALS