Global air cargo demand increased by 2.2 percent in May 2025 compared to the same period last year, according to the latest data released by the International Air Transport Association (IATA). The report shows that international air cargo operations recorded a slightly stronger growth rate of 3.0 percent, highlighting the sector’s steady performance despite prevailing economic challenges. The growth in demand, measured in cargo tonne-kilometers (CTK), comes alongside a 2.0 percent rise in overall cargo capacity, based on available cargo tonne-kilometers (ACTK).
For international operations, cargo capacity expanded by 2.6 percent year-on-year. The modest increase in capacity reflects airlines’ efforts to adjust to evolving market conditions while maintaining operational flexibility. Willie Walsh, Director General of IATA, noted that the uptick in global air cargo volumes is a positive sign, even as certain trade routes face disruptions. “Air cargo demand globally grew 2.2 percent in May. That is encouraging news as a 10.7 percent drop in traffic on the Asia to North America trade lane illustrated the dampening effect of shifting U.S. trade policies.
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,” Walsh said. The broader economic environment presented mixed signals for the air cargo sector. Global industrial production increased by 2.6 percent in April 2025 compared to the previous year, while air cargo volumes during the same period grew by 6.8 percent. This growth outpaced the 3.8 percent increase recorded in global goods trade, indicating that air cargo continues to serve as a critical component of international supply chains, especially for time-sensitive and high-value goods.
IATA reports steady growth in air freight operations
Fuel costs, a significant factor for air cargo operators, have provided some relief. Jet fuel prices in May 2025 were 18.8 percent lower than in May 2024 and declined by 4.3 percent compared to April 2025. The lower fuel prices have eased operational expenses for carriers, supporting their ability to adapt to fluctuating demand. However, the global manufacturing sector showed signs of weakness in May, with the Purchasing Managers’ Index (PMI) falling to 49.1.
A PMI below 50 indicates contraction, underscoring ongoing pressures within global production lines. Additionally, new export orders remained subdued at a reading of 48, reflecting the broader impact of recent U.S. trade policy changes on international commerce. Despite these headwinds, the air cargo industry continues to demonstrate resilience, supported by flexible logistics networks and adaptive supply chain strategies. Industry observers will be closely monitoring the coming months for further developments in trade policies and economic indicators that may influence air cargo demand. – By MENA Newswire News Desk.
