Global Air Cargo Demand Surges 2.2% in May Amid Trade Challenges!

Global Air Cargo Demand Up 2.2% in May Despite Trade Pressures

The International Air Transport Association (IATA) reported a 2.2% increase in global air cargo demand in May 2025 compared to the same month in 2024. International demand grew by 3.0%.

Cargo capacity rose by 2.0% year-on-year, with international capacity up by 2.6%.

IATA Director General Willie Walsh noted that the overall increase is positive, despite a 10.7% decline on the Asia–North America trade route, which reflects the impact of changing U.S. trade policies. He added that the air cargo sector continues to adjust supply chains to meet shifting demand.

Market Overview:

• Industrial production grew 2.6% in April 2025 compared to the previous year.

• Air cargo volumes rose 6.8% during the same period, above the 3.8% growth in global goods trade.

• Jet fuel prices in May were 18.8% lower than in May 2022 and 4.3% lower than in April.

• Manufacturing activity contracted, with the global PMI at 49.1. Export orders remained weak at 48.

Regional Results (May 2025, Year-on-Year):

• Asia-Pacific: Demand up 8.3%; capacity up 5.7%.

• North America: Demand down 5.8%; capacity down 3.2%.

• Europe: Demand up 1.6%; capacity up 1.5%.

• Middle East: Demand up 3.6%; capacity up 4.2%.

• Latin America: Demand up 3.1%; capacity up 3.5%.

• Africa: Demand down 2.1%; capacity up 2.7%.

Trade Lane Highlights (May 2025, Year-on-Year):

• Asia–North America: Down 10.7%, driven by trade policy changes.

• Europe–Asia: Up 13.4%, continuing steady growth.

• Middle East–Asia: Up 10.8%, third month of growth.

• Within Asia: Up 9.1%, with consistent growth.

• Europe–North America: Up 8.2%, maintaining positive momentum.

• Europe–Middle East: Down 0.9%.

• Africa–Asia: Down 14.6%.

IATA noted that while some trade routes remain under pressure, others are seeing steady increases, reflecting changes in supply chains and demand.