The International Air Transport Association (IATA) announced that global air cargo demand increased by 5.5% in July 2025 compared to the previous year. This growth, measured in cargo tonne-kilometers (CTKs), signals continued strength in the air freight sector, with capacity also rising by 3.9%. The results show that international operations are particularly strong, with demand up 6.0% and capacity up 4.5%.
“Air cargo demand grew 5.5% in July, a strong result. Most major trade lanes reported growth, with one notable exception: the Asia–North America trade lane, where demand decreased by 1.0% year-over-year,” said Willie Walsh, IATA’s Director General. “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.”
Key Performance Drivers and Regional Highlights
The report notes several factors influencing the market:
Economic Indicators: Global goods trade grew by 3.1% in June, but a drop in the global manufacturing Purchasing Managers’ Index (PMI) to 49.66 in July indicates a recent contraction.
Fuel Costs: Jet fuel prices were 9.1% lower year-on-year, providing some relief to airlines despite a slight increase from June.
The regional performance for July 2025 varied:
Asia-Pacific airlines led the growth, with a strong 11.1% increase in demand, the highest among all regions.
African airlines also showed robust growth, with a 9.4% rise in demand.
European carriers saw a solid 4.1% increase in demand.
North American carriers experienced the slowest growth at just 0.7%, largely due to the decline on the Asia-North America trade lane.
Trade Lane Insights
While most major trade corridors saw significant volume increases, the Europe-Asia trade lane stood out with a remarkable 13.5% year-on-year growth, marking 29 consecutive months of expansion. In contrast, the Asia–North America trade lane has now seen three consecutive months of decline, reflecting ongoing uncertainty in US trade policy.
