Air cargo demand rises 4.1% in August, driven by global trade shifts

The International Air Transport Association (IATA) has released data for August 2025 global air cargo markets showing a continuation of strong year-on-year growth. Total demand, measured in cargo tonne-kilometers (CTK), increased compared to August 2024 levels, marking the sixth consecutive month of year-on-year expansion.

Capacity, measured in available cargo tonne-kilometers (ACTK), also saw a healthy increase globally compared to the previous year.

“Air cargo demand grew in August, marking the sixth consecutive month of year-on-year growth. Volumes continue to grow even as global trade patterns change. Air cargo has benefited from a shift from sea for some high-value goods as shippers try to minimize the risk of tariff changes,” said Willie Walsh, IATA’s Director General.

Mr. Walsh noted that growth patterns indicate some cargo is being diverted away from North America, fueling stronger growth for the Europe–Asia, Within Asia, Africa–Asia, and Middle East–Asia trade lanes. “This adaptability is vital as shippers navigate the evolving landscape of US tariff policy,” he added.

Operating Environment and Key Market Factors

The operating environment continues to provide mixed signals, yet remains supportive of air cargo growth:

• Global Goods Trade: The global goods trade showed resilience, growing year-on-year in July.
• Jet Fuel Prices: Jet fuel prices in August were lower year-on-year, the fourteenth consecutive month of annual declines, providing cost relief for carriers.
• Manufacturing Sentiment: Global manufacturing Purchasing Managers’ Index (PMI) showed rising optimism with a rebound to the strongest reading since June 2024. Sentiment on new export orders, however, remains below 50, reflecting persistent caution amid tariff uncertainty.

August Regional Performance Highlights

Demand showed significant variance across regions, largely mirroring the trade route diversions described by Mr. Walsh:

Region	Demand (CTK) Y-o-Y Growth	Key Takeaway
Africa	+11.0%	Strongest Rise: Saw the highest year-on-year increase in demand. Capacity grew by $12.3\%$.
Asia-Pacific	+9.8%	Robust Growth: Continued to lead major markets, with capacity up $6.9\%$, benefiting heavily from intra-Asian and Europe-Asia trade.
Europe	+3.2%	Steady Growth: Saw a solid increase in demand, with capacity increasing $4.2\%$.
Middle East	+2.7%	Positive Trend: Maintained positive growth, with capacity increasing $4.3\%$.
Latin America	+2.1%	Moderate Growth: Maintained moderate growth, with capacity increasing $5.0\%$.
North America	−2.1%	Market Decline: This was the only region to post a year-on-year decrease in demand, reflecting the strategic cargo shifts away from the region. Capacity decreased by $1.0\%$.

IATA (International Air Transport Association) represents some 330 airlines, comprising $83\%$ of global air traffic.