Airlines in the Middle East experienced a 14.7 percent increase in air cargo volume in July compared to the same month last year, aligning with a notable 13.6 percent rise in global growth, measured in cargo ton-kilometers (CTKs).
The significant growth in cargo demand within the region was driven by a strong uptick in global trade and ongoing capacity limitations in maritime shipping, according to the latest report from the International Air Transport Association (IATA).
The Middle East-Europe trade route excelled, showing a remarkable year-on-year increase of 32.2 percent, significantly outpacing the 15.9 percent growth seen in the Middle East-Asia trade route for July.
Additionally, regional airlines’ cargo capacity grew by 4.4 percent year-on-year last month, as indicated by the IATA report.
Globally, air cargo demand reached a record 13.6 percent growth in July compared to the same month last year, with international operations alone seeing a rise of 14.3 percent. IATA represents around 330 airlines, accounting for over 80 percent of global air traffic.
“This marks the eighth consecutive month of double-digit year-on-year growth, with overall levels reaching heights not observed since the record peaks of 2021,” the report noted, highlighting the ongoing robust annual growth in global air cargo demand.
The capacity of global airlines, measured in available cargo ton-kilometers (ACTKs), increased by 8.3 percent compared to the previous year, according to IATA.
This growth was primarily driven by an increase in international belly capacity, which rose by 12.8 percent due to a strong passenger market, offsetting a 6.9 percent rise in international freighter capacity.
However, the increase in belly capacity was the lowest in 40 months, while the growth in freighter capacity represented the highest level since an exceptional surge was recorded in January 2024.
Key insight
According to Willie Walsh, IATA director general , air cargo demand had reached record highs year-to-date in July, with strong growth observed across all regions. He noted that the air cargo sector was benefiting from rising global trade, a surge in e-commerce, and capacity constraints in maritime shipping.
Walsh mentioned that with the peak season on the horizon, the year was expected to be particularly robust for air cargo. He highlighted that airlines had shown their capacity to adapt to political and economic uncertainties, responding flexibly to emerging demand trends.
Supporting factors
Several positive factors contributed to the global demand growth for air cargo last month, including an increase in the Purchasing Managers Index (PMI). In July, PMIs for global manufacturing output indicated a slight expansion at 50.2, while the global new export orders PMI remained below the contraction mark at 49.4.
Industrial production remained flat month-on-month in July, and global cross-border trade saw a 0.7 percent increase.
Furthermore, inflation rates in July were relatively stable in the US, Japan, and the European Union (EU), at 2.9 percent, 2.8 percent, and 2.8 percent, respectively.
Read more: Global air travel reaches 94.1 percent of pre-pandemic levels: IATA
Global insights
Among regions, airlines in the Asia-Pacific reported the highest year-on-year air cargo demand growth in July at 17.6 percent, according to IATA.
In various sectors, demand within the Asia trade lane increased by 19.8 percent year-on-year, while the Europe-Asia, Middle East-Asia, and Asia-Africa trade routes rose by 17.9 percent, 15.9 percent, and 15.4 percent, respectively. Capacity for these airlines grew by 11.3 percent year-on-year.
European airlines experienced a 13.7 percent year-on-year rise in air cargo demand for July, with the Middle East-Europe trade route showing the most significant growth at 32.2 percent. The Europe-Asia route, the second largest market, rose by 17.9 percent, and within Europe, growth was 15.5 percent. Capacity in July increased by 7.6 percent year-on-year.
North American carriers recorded an 8.7 percent year-on-year growth in air cargo demand for July. This growth was somewhat affected by flight cancellations and airport closures in the US and Caribbean due to Hurricane Beryl. Demand on the Asia-North America trade route, the largest by volume, grew by 10.8 percent, while the North America-Europe route saw a modest increase of 5.3 percent. Capacity increased by 7 percent year-on-year.
In July, IATA reported that Latin American airlines achieved an 11.1 percent year-on-year growth in air cargo demand.
African airlines experienced a 6.2 percent year-on-year growth in air cargo demand, the lowest among all regions and their lowest figure recorded in 2024.
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