November 4, 2024
Global Air Cargo Demand Rises for 8th Consecutive Month

Global Air Cargo Demand Rises for 8th Consecutive Month

The global air cargo breakout period has continued, with world air cargo demand rising for the eighth consecutive month in July.
Air cargo is loaded aboard a DHL freighter aircraft.
Curimedia, CC BY 2.0, via Wikimedia Commons

The International Air Transport Association (IATA) has announced that global air cargo demand continued its impressive trajectory in July 2024.

It posted a robust 13.6% year-over-year increase for the month. This marks the eighth consecutive month of double-digit growth, underscoring the industry’s resilience and adaptability in the face of ongoing economic and geopolitical challenges.

July Overview


Measured in cargo tonne-kilometers (CTKs), total demand reached levels not seen since the peak of the COVID-19 pandemic in 2021. International operations experienced an even more pronounced surge, with demand rising by 14.3% compared to the same period last year.

Capacity, measured in available cargo tonne-kilometers (ACTKs), also expanded but at a slightly slower pace.

While international belly capacity increased by 12.8%, driven by the growth in passenger markets, international freighter capacity only grew by 6.9%. This marks the lowest increase in belly capacity in 40 months and the highest growth in freighter capacity since January 2024.

Photo Credit: Raimond Spekking via Wikimedia Commons

Influencing Factors


The continued strong performance of the air cargo industry is attributed to several factors. Global trade has been on an upward trend, boosted by factors such as e-commerce and capacity constraints on maritime shipping.

Additionally, airlines have demonstrated their ability to navigate economic uncertainties and flexibly adapt to emerging demand patterns.

IATA’s Director General, Willie Walsh, expressed optimism about the industry’s prospects. “Air cargo demand hit record highs year-to-date in July with strong growth across all regions,” he stated.

“The air cargo business continues to benefit from growth in global trade, booming e-commerce, and capacity constraints on maritime shipping. With the peak season still to come, it is shaping up to be a very strong year for air cargo.”  

Several key macroeconomic indicators support the positive outlook for the air cargo industry. The Purchasing Managers Index (PMI) for global manufacturing output remained above the 50-mark, indicating expansion.

While new export orders contracted slightly, global cross-border trade continued to grow. Inflation rates remained relatively stable in major economies, except for a slight increase in China.

Regional Performance Breakdown


Regionally, Asia-Pacific airlines led the way with a 17.6% year-on-year increase in demand. North American carriers experienced growth of 8.7%, although it was somewhat hampered by flight cancellations and airport closures related to Hurricane Beryl.

European and Middle Eastern carriers also recorded double-digit growth in demand, while African airlines saw a more modest increase of 6.2%.

Asia-Pacific

  • Strongest growth: Asia-Pacific airlines led all regions with a 17.6% year-on-year increase in demand.
  • Key trade lanes: The Within-Asia trade lane saw the most significant growth at 19.8%, followed by Europe-Asia (17.9%), Middle East-Asia (15.9%), and Asia-Africa (15.4%).
  • Capacity growth: Capacity increased by 11.3% year-on-year.
LN9267, CC BY-SA 4.0, via Wikimedia Commons

North America

  • Growth impacted: North American carriers experienced 8.7% growth, partially hampered by flight cancellations and airport closures due to Hurricane Beryl.
  • Key trade lanes: The Asia-North America trade lane, the largest by volume, grew by 10.8%. North America-Europe saw a more modest increase of 5.3%.
  • Capacity growth: Capacity increased by 7.0% year-on-year.

Europe

  • Strong demand: European carriers saw a 13.7% increase in demand.
  • Key trade lanes: The Middle East-Europe trade lane led the way with a 32.2% surge, followed by Europe-Asia (17.9%) and Within Europe (15.5%).
  • Capacity growth: Capacity increased by 7.6% year-on-year.

Middle East

  • Double-digit growth: Middle Eastern carriers experienced a 14.7% increase in demand.
  • Key trade lanes: The Middle East-Europe trade lane continued its strong performance with a 32.2% growth. Middle East-Asia grew by 15.9%.
  • Capacity growth: Capacity increased by 4.4% year-on-year.
Colin Cooke Photo, CC BY-SA 2.0, via Wikimedia Commons

Latin America

  • Growth impacted: Latin American carriers saw an 11.1% increase in demand, partially affected by Hurricane Beryl.
  • Capacity growth: Capacity increased by 9.4% year-on-year.

Africa

  • Lowest growth: African airlines experienced the lowest regional growth at 6.2%, the lowest recorded figure for 2024.
  • Key trade lane: The Africa-Asia market increased by 15.4%.
  • Capacity growth: Capacity increased by 10.5% year-on-year.

Summary


As we look ahead, the air cargo industry is well-positioned to continue its strong performance. The combination of robust global trade, growing e-commerce, and the adaptability of airlines suggests that the sector will remain a vital component of the global economy.

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