Air cargo demand extends growth streak to 6 months driven by trade shifts and strong asia performance

MUMBAI: Global air cargo markets continued their positive trajectory in August 2025, with demand rising 4.1% year-on-year, marking the sixth consecutive month of growth, according to the latest data released by the International Air Transport Association (IATA).

Total demand, measured in cargo tonne-kilometres (CTK), saw international operations rise even faster at 5.1%.

Meanwhile, overall capacity, measured in available cargo tonne-kilometres (ACTK), kept pace with a 3.7% increase.

" Air cargo demand grew 4.1% in August, marking the sixth consecutive month of year-on-year growth. Volumes continue to grow even as global trade patterns change," said Willie Walsh, IATA’s Director General. Walsh noted that the air freight sector is benefiting from an evolving trade environment.

"Air cargo has benefitted from a shift from sea for some high-value goods as shippers try to minimise the risk of tariff changes. And growth patterns indicate some being diverted away from North America, fueling stronger growth for the Europe–Asia, Within Asia, Africa–Asia, and Middle East–Asia trade lanes," he explained.


This adaptability, Walsh added, is "vital as shippers navigate the evolving landscape of US tariff policy." Regional and Trade Lane Dynamics Growth was highly uneven across global regions, with African and Asia-Pacific carriers posting the strongest performances:

• African airlines led all regions with an 11.0% year-on-year increase in demand, while capacity saw a 12.3% rise.
• Asia-Pacific airlines saw a robust 9.8% growth in demand. Capacity for the region was up 6.9%.
• European carriers recorded a 3.2% increase in demand, against a 4.2% rise in capacity.
• Middle Eastern carriers and Latin American carriers both experienced moderate gains, with demand up 2.7% and 2.1% respectively.
• North American carriers reported the weakest performance, with a 2.1% year-on-year decrease in demand—the only region to record a decline. Capacity also fell by 1.0% for the region.

The trade lane data reinforced the regional trends. Air freight volumes increased significantly across several major corridors, with Europe–Asia and Within Asia posting robust double-digit growth. Middle East–Asia, North America–Europe, and Africa–Asia also saw notable gains.

Conversely, volumes declined on the Asia–North America, Middle East–Europe, and Within Europe lanes, said IATA. Operating Environment Factors IATA also highlighted several encouraging macro-economic signals underpinning the cargo market’s resilience:

• The global goods trade grew by a solid 5.4% year-on-year in July.
• The Global Manufacturing PMI rebounded to 51.75 in August, the strongest reading since June 2024, signalling rising optimism in the manufacturing sector.
• Cost relief was noted as jet fuel prices in August were 6.4% lower year-on-year, marking the fourteenth consecutive month of declines.

However, caution persists due to trade policy concerns, as sentiment on new export orders remains below the 50-point expansion threshold at 48.73, said IATA.