Global air cargo demand rises by 3.2 per cent in January 2025 amid market challenges – The Times of India

MUMBAI: The total demand in the global cargo market (measured in cargo tonne-kilometers (CTK)), rose by 3.2% compared to January 2024 levels (3.6% for international operations) for an 18th consecutive month of growth, said the International Air Transport Association (IATA) in its Jan 2025 cargo report.
Capacity, measured in available cargo tonne-kilometers (ACTK), increased by 6.8% compared to January 2024 (7.3% for international operations). “January marked 18 consecutive months of growth for air cargo, but the month’s 3.2% year-on-year growth is a moderation from double-digit peaks in 2024. Similarly, yields, while still above January 2024 levels, saw a 9.9% decline from December as cargo load factors also declined by an average of 1.5 percentage points. While external factors such as trade growth, declining fuel costs, and expanding e-commerce remain positive for air cargo, it is important to closely watch the evolution of market conditions at this time. In particular, the wild card is the potential for tariff-driven trade policies from the US Trump Administration. Fortunately, the air cargo industry is well-practiced at dealing with shifts in the operating environment,” said Willie Walsh, IATA’s Director General.
Several factors in the operating environment were noted. Year-on-year, industrial production rose 2.6% in December. Global goods trade grew for a ninth consecutive month, reporting a 3.3% increase in December. The Purchasing Managers Index (PMI) for global manufacturing output was above the 50-mark for January, indicating growth. At 50.62, this was the highest reading since July 2024. The PMI for new export orders rose to 49.37, remaining just shy of the 50-mark, which is the growth threshold.
In January, consumer inflation in the US and in Europe both rose by 0.1 percentage point to 3.0% and 2.8% respectively. Chinese consumer inflation rebounded to 0.5% in January, after progressively falling to 0.1% in the previous four months.
As for regional performance, Asia-Pacific airlines saw 7.5% year-on-year demand growth for air cargo in January. Capacity increased by 10.9% year-on-year. North American carriers saw 5.3% year-on-year demand growth for air cargo in January. Capacity increased by 7.5% year-on-year. European carriers saw 1.3% year-on-year demand growth for air cargo in January. Capacity increased 3.5% year-on-year.
Middle Eastern carriers saw an 8.4% year-on-year demand decrease for air cargo in January, the slowest among the regions. Capacity decreased by 1.2% year-on-year. Latin American carriers saw an 11.2% year-on-year increase in demand growth for air cargo in January, the strongest growth among the regions. Capacity increased 10.6% year-on-year. African airlines saw a 3.4% year-on-year decrease in demand for air cargo in January. Capacity increased by 5.4% year-on-year.
“Most international routes experienced growth in January. Airlines are benefiting from rising e-commerce demand in the US and Europe amid ongoing capacity limits in ocean shipping,” said the report.