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Strong air cargo demand continued in July, based on latest data from the International Air Transport Association
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Total global demand rose by 13.6% in terms of cargo ton kilometers compared to July 2023 levels
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This marks the eighth consecutive month of double-digit year-on-year growth, with overall levels reaching highs unseen since the record peaks of 2021
Strong air cargo demand continued in July, based on latest data from the International Air Transport Association.
Total global demand rose by 13.6% in terms of cargo ton kilometers (CTKs) compared to July 2023 levels. This marks the eighth consecutive month of double-digit year-on-year growth, with overall levels reaching highs unseen since the record peaks of 2021.
IATA Director General Willie Walsh said the strong growth was seen across all regions.
“The air cargo business continues to benefit from growth in global trade, booming e-commerce and capacity constraints on maritime shipping,” said Walsh.
He added that with peak season still to come, “it is shaping to be a very strong year for air cargo.”
Airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends, Walsh also said.
In terms of available cargo ton kilometers (ACTKs), capacity rose by 8.3% compared to July, last year, largely related to the growth in global belly capacity which went up 12%.
It should be noted, however, that belly capacity is the lowest in 40 months while growth in freighter capacity is the highest since an extraordinary jump was seen in January, this year.
There were several factors in the operating environment worth noting.
In July, for one, the Purchasing Managers Index (PMIs) for global manufacturing output showed expansion at 50.2, while the global new export orders continued to hover below the 50- mark at 49.4. The latter figure is deemed as a marker for contraction.
Industrial production, meanwhile, stayed level in July month-on-month, and worldwide cross-border trade rose 0.7%.
Inflation also stayed relatively stable for July in the US, Japan, and the EU. China’s inflation rate, however, rose 0.3 percentage points to 0.6^, the highest level in five months.
Demand growth for air cargo among the world’s airlines was mixed, with some experiencing double digit growth and others were at single digit hikes.
Asia Pacific airlines had a 17.6% year-on-year demand growth for air cargo in July, the highest for all regions. The lowest growth, on the other hand, was experienced by African airlines, at 6.2% year-on-year.
Also seeing single digit demand growth for air cargo in July 2024 were the North American carriers, at 8.7%, hampered partly by flight cancellations and airport closures due to Hurricane Beryl.
Others which saw double digit growth were European, Middle Eastern, and Latin American carriers, at 13.7%, 14.7%, and 11.1% respectively.
