The International Air Transport Association (IATA) reports a significant 4.4% year-on-year increase in global air cargo demand for March 2025, reaching a record high for the month. International operations saw an even stronger growth of 5.5%. Capacity also kept pace, expanding by 4.3% overall and 6.1% for international routes.
Leading the charge was the Asia-Pacific region, which recorded an impressive 9.6% year-on-year demand growth, coupled with an 11.3% rise in capacity. North American carriers also contributed significantly with a 9.5% demand increase and a 6.1% capacity expansion.
Willie Walsh, IATA’s Director General, highlighted the potential impact of impending US tariffs, stating, “March cargo volumes were strong. This may be partly a front-loading of demand as some businesses tried to beat the well-telegraphed 2 April tariff announcement by the Trump Administration.” He also pointed to lower fuel costs as a temporary positive factor amidst trade uncertainty.
Regional performance offered a mixed picture. European carriers experienced a 4.5% demand increase, while Latin American airlines saw a 5.8% rise. In contrast, Middle Eastern carriers witnessed a 3.2% decline, possibly due to a strong base effect from Red Sea disruptions in early 2024. African airlines faced the steepest drop in demand at -13.4%.
Several underlying factors shaped the March results: the typical post-February volume rebound, a substantial 17.3% year-on-year decrease in jet fuel prices, and the anticipated impact of new US trade rules, particularly the May 2nd duty-free import ban on goods from China and Hong Kong. Global economic indicators showed moderate growth in industrial output (3.2%) and trade volumes (2.9%), alongside easing inflation in key economies. The Europe-North America trade lane remained the busiest, while the Asia-North America corridor showed strong growth, likely fueled by pre-tariff shipments.
