Global air cargo demand rises in May despite U.S. trade policy impact: IATA

Global air cargo demand grew 2.2 per cent in May compared to the same month in 2024, according to new data from the International Air Transport Association, despite ongoing headwinds from shifting U.S. trade policies.

Capacity rose two per cent year over year, said the IATA. The association noted a sharp 10.7 per cent drop in traffic on the Asia–North America route, citing changes to de minimis thresholds and the fading impact of tariff front-loading.

“Even as these policies evolve, already we can see the air cargo sector’s well-tested resilience helping shippers to accommodate supply chain needs to flexibly hold back, re-route or accelerate deliveries,” said IATA director general Willie Walsh.

Asia-Pacific carriers posted the strongest regional performance, with demand up 8.3 per cent and capacity rising 5.7 per cent. North American airlines recorded the steepest decline, with demand falling 5.8 per cent and capacity down 3.2 per cent.

Other regional results included:

• Europe: demand up 1.6 per cent; capacity up 1.5 per cent
• Middle East: demand up 3.6 per cent; capacity up 4.2 per cent
• Latin America: demand up 3.1 per cent; capacity up 3.5 per cent
• Africa: demand down 2.1 per cent; capacity up 2.7 per cent

Jet fuel prices were down 18.8 per cent compared to May 2024, offering some relief to carriers. However, global manufacturing activity weakened, with the Purchasing Managers’ Index (PMI) falling to 49.1, and export orders remained in contraction.