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June air cargo demand edges up amid regional volatility

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June air cargo demand edges up amid regional volatility
Research
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Willie Walsh Director General | International Air Transport Association

Global air cargo demand saw a slight increase in June 2025, according to data released by the International Air Transport Association (IATA). The total demand, measured in cargo tonne-kilometers (CTK), rose by 0.8% compared to June 2024. For international operations, the growth was higher at 1.6%. Capacity also increased by 1.7% year-on-year, and by 2.8% for international flights.

Willie Walsh, IATA’s Director General, commented on the mixed results: “Overall, air cargo demand grew by a modest 0.8% year-on-year in June, but there are very differing stories behind that number for the industry’s major players. Trade tensions saw North American traffic fall by 8.3% and European growth stagnate at 0.8%. But Asia-Pacific bucked the trend to report a 9.0% expansion. Meanwhile disruptions from military conflict in the Middle East saw the region’s cargo traffic fall by 3.2%.”

Walsh also addressed broader trade issues affecting air cargo: “The June air cargo data made it very clear that stability and predictability are essential supports for trade. Emerging clarity on US tariffs allows businesses greater confidence in planning. But we cannot overlook the fact that the ‘deals’ being struck are resulting in significantly higher tariffs on goods imported into the US than we had just a few months ago. The economic damage of these cost barriers to trade remains to be seen. In the meantime, governments should redouble efforts to make trade facilitation simpler, faster, cheaper and more secure with digitalization.”

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Several global economic indicators influenced market performance during this period:

- World industrial production increased by over three percent in May.

- Global goods trade grew five percent year-on-year.

- Jet fuel prices dropped twelve percent compared to last year but were up nearly nine percent from May.

- The global manufacturing PMI returned above fifty (at 51.2), signaling expansion; however, new export orders remained under pressure at below fifty due to recent changes in US trade policy.

Regional performance varied sharply:

- Asia-Pacific airlines experienced strong demand growth of nine percent.

- North American carriers recorded an eight-point-three percent decline—the largest drop among regions.

- European carriers posted marginal growth of zero-point-eight percent.

- Middle Eastern airlines saw a decrease of three-point-two percent.

- Latin America registered a rise of three-point-five percent while Africa reported a decline of three-point-nine percent.

Analysis of key air freight corridors showed continued growth between Europe and Asia as well as within Asia itself; both routes have now seen sustained increases for many consecutive months (twenty-eight and twenty months respectively). In contrast, routes such as Asia-North America and Europe-Middle East continued their multi-month declines.

These results reflect ongoing challenges from geopolitical events and changing tariff regimes across major economies.

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