Global air cargo demand increased 4.4% year-on-year in August, while available cargo capacity declined slightly, according to new data from the International Air Transport Association (IATA).
Demand, measured in cargo tonne-kilometres (CTK), grew 5.3% on international routes. At the same time, global available cargo tonne-kilometres (ACTK) decreased by 0.1%, although international capacity recorded a marginal 0.1% increase.
IATA said stronger demand and improved aircraft load factors helped airlines offset some of the pressure from rising fuel costs. Air cargo yields also increased month-on-month in August for the first time since April.
“Air cargo demand rose 4.4% year-on-year in August with all regions reporting growth even as capacity was trimmed by 0.1%,” said Marie Owens Thomsen, IATA’s Senior Vice President of Sustainability and Chief Economist.
The latest air cargo figures come amid continued growth in global trade. Global trade increased 6% year-on-year in July, marking the 33rd consecutive month of annual growth.
Manufacturing activity also strengthened in August, with the Global Manufacturing Output PMI reaching 53.0, indicating continued expansion in global industrial activity.
Despite stronger cargo demand, operating costs continue to put pressure on airlines.
Jet fuel prices increased 8.3% from July and were 79.2% higher than a year earlier, creating additional cost pressures for cargo and passenger airlines alike.
Higher demand and load factors have helped cushion some of this impact, but fuel prices remain an important factor affecting airline profitability.
North American airlines recorded the strongest regional growth in air cargo demand in August, with demand increasing 6.6% year-on-year.
Regional growth was recorded as follows:
The Asia-North America trade lane remained the strongest major air cargo route.
However, routes connected to the Gulf region continued to face disruptions and operational challenges linked to the ongoing conflict in the Middle East.
The continued expansion of global trade and manufacturing activity is supporting demand for air freight. However, elevated fuel prices, geopolitical disruptions and capacity constraints remain important challenges for the industry.
With demand continuing to grow across all regions, airlines are balancing opportunities for increased cargo operations against higher operating costs and an uncertain global environment.
