Global air cargo sees modest growth in June, IATA reports

The International Air Transport Association (IATA) says global air cargo demand rose slightly in June, increasing 0.8 per cent compared to the same month last year, though regional performance varied significantly.

“Overall, air cargo demand grew by a modest 0.8 per cent year-on-year in June, but there are very differing stories behind that number for the industry’s major players,” said Willie Walsh, IATA’s director general. “Trade tensions saw North American traffic fall by 8.3 per cent and European growth stagnate at 0.8 per cent. But Asia-Pacific bucked the trend to report a nine per cent expansion. Meanwhile disruptions from military conflict in the Middle East saw the region’s cargo traffic fall by 3.2 per cent.”

Available cargo capacity also grew, rising 1.7 per cent globally compared to June 2024, including a 2.8 per cent increase in international capacity.

Walsh noted that while the easing of trade policy uncertainty in the U.S. is helping businesses plan, elevated tariffs continue to pose risks.

“The June air cargo data made it very clear that stability and predictability are essential supports for trade,” he said. “Emerging clarity on U.S. tariffs allows businesses greater confidence in planning. But we cannot overlook the fact that the ‘deals’ being struck are resulting in significantly higher tariffs on goods imported into the U.S. than we had just a few months ago. The economic damage of these cost barriers to trade remains to be seen. In the meantime, governments should redouble efforts to make trade facilitation simpler, faster, cheaper and more secure with digitalization.”

Other indicators in June showed global industrial production rising 3.2 per cent and goods trade climbing 3.5 per cent year-over-year. Jet fuel prices were down 12 per cent from June 2024, though up 8.6 per cent from May. The global manufacturing PMI rose to 51.2, while new export orders remained in contraction at 49.3.

By region, Latin American carriers reported a 3.5 per cent increase in demand, African carriers saw a 3.9 per cent rise, and European carriers posted flat growth at 0.8 per cent. North America posted the largest decline at 8.3 per cent, while Middle Eastern airlines saw a 3.2 per cent drop.

Trade lanes connecting Europe, the Middle East and Asia experienced growth, while routes involving North America and intra-Asia volumes declined.