Global air freight expands despite US trade headwinds: IATA

The International Air Transport Association (IATA) has reported that global air cargo demand rose 5.5 per cent year-on-year (YoY) in July 2025, with international operations expanding 6 per cent.

Available cargo capacity increased 3.9 per cent (+4.5 per cent for international routes). The rise in volumes was supported by 3.1 per cent growth in global goods trade in June, while lower jet fuel prices eased airline costs.

Regional results were mixed. Asia-Pacific carriers led growth with an 11.1 per cent surge in demand, supported by a 7.3 per cent capacity rise. African airlines also posted strong gains, up 9.4 per cent despite a 0.1 per cent fall in capacity. European and Middle Eastern carriers recorded moderate growth at 4.1 per cent and 2.6 per cent respectively, while Latin America grew 2.4 per cent. North America showed the weakest performance at just 0.7 per cent, with capacity slipping 0.6 per cent, IATA siad in a release.

Trade lane performance revealed solid growth across most corridors, though Asia–North America saw its third consecutive monthly decline, and Middle East–Europe managed only a marginal rise.

Despite the positive trend, global manufacturing contracted in July, with PMI dropping to 49.66, and new export orders staying in negative territory at 48.2 for the fourth month, reflecting uncertainty linked to US trade policy.

“Air cargo demand grew 5.5 per cent in July, a strong result. Most major trade lanes reported growth, with one significant exception: Asia–North America, where demand was down 1 per cent YoY. A sharp decline in e-commerce, as the US de minimis exemptions on small shipments expired, was likely offset by shippers frontloading goods in advance of rising tariffs for imports to the US,” said Willie Walsh, IATA’s director general.

“August will likely reveal more clearly the impact of shifting US trade policies. While much attention is rightly being focused on developments in markets connected to the US, it is important to keep a broad perspective on the global network. A fifth of air cargo travels on the Europe–Asia trade lane, which marked 29 months of consecutive expansion with 13.5 per cent per cent YoY growth in July,” Walsh said.

ALCHEMPro News Desk (HU)