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Global air cargo demand grew 3.9% year on year in July, supported by stronger global trade and manufacturing activity, according to the International Air Transport Association
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Cargo capacity grew 1.7%, resulting in a one percentage point improvement in the global cargo load factor
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Jet fuel prices increased 12.2% in July and were 56.9% higher than a year earlier, raising airline costs
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Airlines in Asia-Pacific, Europe and North America accounted for more than 90% of the overall increase in demand
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North American carriers posted the strongest regional growth at 4.8%, followed by Europe at 4.4% and Asia-Pacific and Latin America-Caribbean at 4.1% each
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The Asia-North America trade lane recorded the strongest growth at 9.2%, while intra-Asia traffic increased 6.1%
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IATA said the outlook remains broadly positive but warned that higher fuel prices, geopolitical tensions and tariff uncertainty pose risks
Global air cargo demand grew 3.9% year on year in July, supported by stronger global trade and manufacturing activity, although rising fuel costs and geopolitical risks continued to weigh on the outlook, the International Air Transport Association (IATA) said.
Total demand, measured in cargo tonne-kilometers (CTK), increased 3.9% from July 2025, while international demand rose 4.7%.
Capacity, measured in available cargo tonne-kilometers (ACTK), grew 1.7% year on year, including a 1.8% increase for international operations.
“Air cargo demand grew 3.9% year-on-year in July. While all regions recorded growth, airlines in Asia-Pacific, Europe and North America accounted for more than 90% of the overall increase. Dedicated freighters gained market share as belly-hold traffic declined, possibly reflecting demand for larger or specialist shipments and the operational flexibility that freighters can provide. said Marie Owens Thomsen, IATA’s senior vice president, sustainability and chief economist.
“Looking ahead, the outlook remains broadly positive, supported by manufacturing activity, export orders and global trade. However, higher fuel prices, geopolitical tensions and tariff uncertainty will need to be watched carefully,” added Owens.
READ: Global air cargo demand jumps 8.5% in June 2026 – IATA
Global trade increased 7.5% year on year in July, while the Global Manufacturing Output Purchasing Managers’ Index fell 0.3 point to 52.7. The New Export Orders Index, however, rose to 50.0, with IATA saying the indicators remained broadly supportive of air cargo demand.
Fuel costs emerged as a key concern. Jet fuel prices increased 12.2% from June and were 56.9% higher than a year earlier, adding pressure on airline operating costs.
Asia-Pacific as a key growth driver
Asia-Pacific airlines posted a 4.1% year-on-year increase in cargo demand in July, while capacity expanded 3%. The region accounts for 35.8% of global cargo traffic based on 2025 CTK shares.
North American carriers recorded the strongest regional growth, with demand up 4.8%. Capacity, however, fell 1.5%, contributing to a 2.5-percentage-point improvement in the region’s cargo load factor.
European carriers posted a 4.4% increase in demand and a 1.3% increase in capacity.
Middle Eastern airlines recorded 1.7% demand growth against a 4% capacity increase, while Latin American and Caribbean carriers saw demand rise 4.1% and capacity jump 7%.
African airlines registered the weakest demand growth among regions at 1.1%, while capacity increased 4.1%.
Asia-North America trade lane drives growth
Air cargo growth varied significantly across major trade lanes.
The Asia-North America corridor recorded the strongest growth at 9.2%, extending its growth streak to six consecutive months. Within-Asia traffic increased 6.1%, while Europe-Asia grew 3.1% and Europe-North America expanded 2.1%.
Gulf-linked routes continued to face disruption amid the conflict in the Middle East. Europe-Middle East traffic contracted 16.1%, while Middle East-Asia traffic declined 14.1%.
IATA said dedicated freighters gained market share during the month as belly-hold cargo traffic declined, potentially reflecting stronger demand for larger or specialized shipments and the operational flexibility offered by freighter aircraft.
The association said the air cargo outlook remains positive, supported by manufacturing, export orders, and global trade, but higher fuel prices, geopolitical tensions, and tariff uncertainty remain key risks.
