Air Cargo Demand Increases in June Despite Trade Disruptions | The International Air Transport Association (IATA) has released its latest data for the June 2025 global air cargo market, highlighting a modest increase in demand and capacity amidst varied performances across regions.
Total cargo demand, measured in cargo tonne-kilometers (CTK), rose by 0.8% from June 2024, while capacity, gauged in available cargo tonne-kilometers (ACTK), saw a 1.7% increase in the same time frame.
Willie Walsh, IATA’s Director General, remarked on the mixed results, stating, “Overall, air cargo demand grew by a modest 0.8% year-on-year in June, but there are very differing stories behind that number for the industry’s major players.”
Notably, North American traffic dipped by 8.3% due to ongoing trade tensions, while European growth stagnated at 0.8%. Conversely, the Asia-Pacific region experienced a robust 9.0% expansion in cargo traffic, demonstrating resilience in the face of challenges, although the Middle East saw a 3.2% decline attributed to disruptions from military conflict.
The report underscores the pressing need for stability and predictability in trade. Walsh emphasised the importance of clarity on US tariffs, which fosters business confidence. However, he cautioned that current shifts in trade agreements have resulted in significantly higher tariffs on goods entering the US, raising concerns over potential economic repercussions.
Several key factors influencing the operating environment include a 3.2% year-on-year increase in world industrial production in May and a 3.5% growth in global goods trade. Additionally, the price of jet fuel experienced a significant yearly decline of 12%, marking the fourth consecutive monthly drop, though it rose 8.6% compared to May prices.
Moreover, global manufacturing showed signs of recovery in June, with the Purchasing Managers’ Index (PMI) rising to 51.2. Despite improvements, the PMI for new export orders still lingered in negative territory at 49.3, reflecting pressures from recent shifts in US trade policy.
As the air cargo industry navigates these complex challenges, IATA has called for governments to streamline trade facilitation through digitalisation, making processes simpler, faster, cheaper, and more secure.
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