Global air cargo demand continues to grow strongly

August was the ninth month in a row in which global air cargo demand increased by double-digits, in year-on-year terms, the International Air Transport Association (IATA – the representative body for the global airline industry) has reported. Total global demand rose by 11.4%, while international demand increased by 12.4%.

Total global cargo capacity was 6.2% higher, year-on-year, while the increase for international operations was 8.2%. The increased capacity was mainly the result of the increased availability of airliner belly hold volumes, which grew by 10.9% over the same period. Total global air cargo capacity reached its highest ever level in August.

“We continue to see very good news in air cargo markets,” affirmed IATA director-general Willie Walsh. “The sector recorded a second consecutive month of record high demand year-to-date. Even with record levels of capacity, yields are up 11.7% on 2023, 2% on the previous month, and 46% above pre-pandemic levels. This strong performance is underpinned by slow but steady growth in global trade, booming e-commerce, and continuing capacity constraints on maritime shipping.”

Several major international economic factors affect air cargo. One of these, industrial production, stayed level in August, while another, global cross-border trade, fell very slightly, by -0.3%. The Purchasing Managers Index (PMI) for global manufacturing output was 49.9, indicating slight contraction, while the PMI for new export orders more clearly showed contraction, at 48.4. Inflation in the US and EU in August both fell to their lowest levels since 2021, at 2.6% and 2.4% respectively. Japanese inflation rose 0.3% to 3%, the highest level in ten months. Chinese inflation continued its slow upward trend, up 0.1% to total 0.7%, which was the highest level in six months.

In terms of IATA’s six regions, the one that saw the strongest growth in total air cargo demand was the Asia-Pacific, with an increase of 14.6%. It was followed by Latin America at 14.2%, and then Europe and the Middle East (each 13.5%), Africa (7.5%) and North America (4.8%).   

In terms of capacity, the region that saw the greatest increase was Africa, at 11.4%, followed by Europe, at 9.4%. The Asia-Pacific was third, at 8.6%, followed by Latin America (8%), the Middle East (4%) and North America (2.4%).