Strong air cargo demand growth extends into July: IATA

Geneva : The International Air Transport Association (IATA) released data for July 2024 global air cargo markets showing continuing strong annual growth in demand. Total demand, measured in cargo tonne-kilometers, rose by 13.6 per cent compared to July 2023 levels (14.3pc for international operations). This is the eighth consecutive month of double-digit year-on-year growth, with overall levels reaching heights not seen since the record peaks of 2021.

Capacity, measured in available cargo tonne-kilometers, increased by 8.3 per cent compared to July 2023 (10.1pc for international operations). This was largely related to the growth in international belly capacity, which rose 12.8 per cent on the strength of passenger markets and balancing the 6.9 per cent growth of international freighter capacity.

About the development, Willie Walsh, Director General, IATA, said, "Air cargo demand hit record highs year-to-date in July with strong growth across all regions. 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 to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends."

June regional performance

Asia-Pacific airlines saw 17.6 per cent year-on-year demand growth for air cargo in July - the strongest of all regions. Demand on the Within-Asia trade lane grew by 19.8 per cent year-on-year, while the Europe-Asia, Middle East-Asia, and Asia-Africa trade lanes rose by 17.9 per cent, 15.9 per cent and 15.4 per cent respectively. Capacity increased by 11.3 per cent year-on-year.

North American carriers saw 8.7 per cent year-on-year demand growth for air cargo in July. Growth was hampered in part by flight cancelations and airport closures in the US and the Caribbean in relation to Hurricane Beryl. Demand on the Asia-North America trade lane, the largest trade lane by volume, grew by 10.8 per cent year-on-year, while the North America-Europe route saw a modest increase of 5.3 per cent. July capacity increased by 7.0 per cent year-on-year.

European carriers saw 13.7 per cent year-on-year demand growth for air cargo in July. The Middle East-Europe trade lane led growth, up 32.2 per cent, maintaining a streak of double-digit annual growth that originated in September 2023.  The Europe-Asia route, the second largest market, was up 17.9 per cent. Within Europe also saw double-digit growth, up 15.5 per cent. July capacity increased 7.6 per cent year-on-year.