Air cargo demand rises nearly ten percent in October

Research

Muhammad Albakri Senior Vice President, Financial Settlement & Distribution Services | International Air Transport Association

By Sky Industry News

Dec 3, 2024

Total demand for air cargo increased by 9.8% in October 2024 compared to the same month in 2023, marking the fifteenth consecutive month of growth, according to data from the International Air Transport Association (IATA). The increase in demand was accompanied by a 5.9% rise in capacity, driven largely by an 8.5% boost in international belly capacity and a 5.6% increase in dedicated freighter capacity.

Willie Walsh, IATA’s Director General, commented on the performance: “Air cargo markets continued their strong performance in October, with demand rising 9.8% year-on-year and capacity up 5.9%. Global air cargo yields (including surcharges) continue to rise, up 10.6% on 2023 and 49% on 2019 levels."

However, Walsh also noted potential challenges ahead due to geopolitical developments: "While 2024 is shaping up to be a banner year for air cargo, we must look to 2025 with some caution. The incoming Trump Administration’s announced intention to impose significant tariffs on its top trading partners—Canada, China and Mexico—has the potential to upend global supply chains and undermine consumer confidence."

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In terms of regional performance, Latin American carriers led with an impressive 18.5% year-on-year growth in demand for air cargo in October. Asia-Pacific airlines followed with a growth rate of 13.4%, while North American carriers experienced a growth of 9.5%. European carriers saw a demand increase of 7.6%, Middle Eastern carriers had a growth of 4.5%, and African airlines recorded the slowest growth at just 1.6%.

The report also highlighted trade lane growth across various regions with Europe-Asia routes experiencing a notable increase of 14.3%, while within Europe traffic grew by an impressive 18%.

Several factors influenced these trends including industrial production which rose by 1.6% year-on-year in September and global goods trade which increased by 2.4%. Despite these positive indicators, there remains uncertainty as reflected by the Purchasing Managers Index (PMI) for new export orders remaining below the growth-indicating mark.

Inflation rates showed mixed trends across major economies; US inflation rose slightly ending a six-month decline while EU inflation saw a modest increase and China's consumer inflation fell.

The IATA statistics cover both international and domestic scheduled air cargo operations for member and non-member airlines.