Global Air Cargo Market Shows Robust Growth
Globally, the air cargo market also demonstrated strong performance in April. IATA reported a 5.8% increase in overall cargo demand compared to the previous year, with available cargo capacity expanding by 6.3%. For international operations specifically, demand grew by 6.5%, matched by a 6.9% expansion in capacity.
"Air cargo demand grew strongly in April, with volumes up 5.8% year-on-year, building on March’s solid performance," the IATA report highlighted.
Willie Walsh, IATA’s Director General, attributed this robust performance to several factors. A seasonal surge in demand for fashion and consumer goods, partly driven by companies front-loading shipments ahead of anticipated US tariff changes, combined with declining jet fuel prices, has significantly boosted air cargo volumes. With capacity at record highs and improving yields, the overall outlook for the air cargo industry remains optimistic.
Regional Performance and Market Dynamics
Across different regions, Latin American carriers led the global growth charge with an impressive 10.1% increase in cargo demand, closely followed by Asia-Pacific airlines at 10.0%. North American carriers experienced a 4.2% rise, while European airlines posted 2.9% growth. Middle Eastern carriers recorded the slowest growth at 2.3%.
African airlines, with their 4.7% gain in demand, positioned themselves in the middle of this regional performance spectrum. This indicates a stable showing within a dynamic global trade environment. However, the notable gap between demand growth (4.7%) and capacity increase (9.7%) could potentially put pressure on profitability, especially if global export volumes begin to soften in the coming months.
Economic Indicators and Trade Lane Insights
IATA's report also delved into the macroeconomic indicators influencing April's cargo trends. World industrial production rose by 3.2% year-on-year in March, and global goods trade jumped by 6.5% month-on-month. Adding to the positive sentiment, jet fuel prices continued their downward trend, falling by 21.2% compared to a year ago and 4.1% from the previous month.
Despite these favorable indicators, there are mixed signals. The global manufacturing Purchasing Managers’ Index (PMI) remained just above the expansion threshold at 50.5. More concerning, the PMI for new export orders dipped to 47.2, staying below the 50 mark, which suggests ongoing weakness in future trade volumes.
Furthermore, trade lane performance was varied. While most international routes saw growth, key corridors such as Middle East–Europe, Africa–Asia, and intra-European routes experienced declines. These shifts reflect evolving global trade dynamics and persistent geopolitical tensions that continue to reshape cargo flows.