News #128 - July Air Cargo Up 5.5%

The International Air Transport Association (IATA) has released July 2025 data for global air cargo markets, showing continued growth despite uneven performance across trade lanes.

• Total demand, measured in cargo tonne-kilometers (CTKs), rose 5.5% year-on-year (+6.0% for international operations).
• Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 3.9% year-on-year (+4.5% for international operations).

“Air cargo demand grew 5.5% in July, a solid result. Most major trade lanes recorded gains, with the notable exception of Asia–North America, where demand contracted by 1.0% compared to last year.

The decline in e-commerce volumes, following the expiration of U.S. de minimis exemptions on small shipments, was likely counterbalanced by shippers frontloading cargo ahead of impending tariff increases. The full impact of evolving U.S. trade policy will become clearer in August.

While market focus remains on the U.S., it is essential to view developments within the wider global network. Notably, the Europe–Asia trade lane—responsible for one-fifth of global air freight—marked 29 consecutive months of expansion, with growth of 13.5% year-on-year in July,” said Willie Walsh, IATA’s Director General.

Operating Environment Highlights

• Global goods trade rose 3.1% year-on-year in June.
• Jet fuel prices in July were 9.1% lower than a year earlier, offering cost relief for airlines, though prices rose 4.3% month-on-month compared to June.
• Global manufacturing contracted in July, with the Purchasing Managers’ Index (PMI) falling to 49.66, marking its second dip below the 50-threshold this year.
• Export orders remained weak at 48.2, reflecting ongoing uncertainty amid shifting U.S. trade policies.

Global Market Performance – July 2025

* World share based on 2024 industry CTKs

Regional Insights

• Asia-Pacific: Recorded the strongest growth, with demand up 11.1% year-on-year. Capacity expanded 7.3%.
• North America: Posted the slowest performance, with demand rising just 0.7% while capacity contracted 0.6%.
• Europe: Grew 4.1% in demand, supported by a 4.0% capacity increase.
• Middle East: Demand rose 2.6%, while capacity outpaced growth at +5.9%.
• Latin America & Caribbean: Demand increased 2.4%, with capacity up 3.8%.
• Africa: Delivered strong performance with +9.4% demand, even as capacity slipped 0.1%.

Trade Lane Dynamics

Air cargo volumes expanded across most global trade corridors, with the exception of Asia–North America, which continued its decline.

* Based on 2024 full-year CTKs

Source: https://www.iata.org/en/pressroom/2025-releases/2025-08-29-01/

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