July sees steady global air cargo growth despite declines on Asia-North America route

In June, global goods trade expanded by 3.1% compared to the previous year. The price of jet fuel in July was down by 9.1% from a year earlier and has remained below levels seen so far this year, which has helped reduce airline operating costs; however, it was up by 4.3% compared to June.

The global manufacturing sector contracted again in July as indicated by a Purchasing Managers’ Index (PMI) reading of 49.66—its second dip below the key threshold since January—while new export orders also declined for a fourth consecutive month at an index level of 48.2.

Regional performance varied significantly:

- Airlines based in Asia-Pacific experienced an 11.1% increase in demand—the highest among all regions—with capacity up by 7.3%.

- North American carriers posted only a modest gain of 0.7%, while their available capacity decreased by 0.6%.

- European airlines recorded a demand rise of 4.1%, matching their capacity growth.

- Middle Eastern airlines saw demand grow by 2.6%, but their capacity rose more sharply at 5.9%.

- Latin American carriers had a demand increase of 2.4%, with capacity up by 3.8%.

- African airlines registered a notable jump in demand at 9.4%, while their available capacity slipped slightly by 0.1%.

Analysis across key trade lanes showed mixed results:

The Europe–Asia corridor accounted for about one-fifth of total air cargo and achieved its twenty-ninth straight month of expansion with growth at +13.5%. North America–Europe traffic also continued its positive trend (+9.6%) for an eighteenth consecutive month.

However, volumes between Asia and North America fell for the third month running (-1%), reflecting recent changes such as stricter US import rules and shifts in e-commerce activity following policy changes regarding small shipment exemptions and tariffs.

Other corridors including Middle East–Asia (+8.5%), within Asia (+10.3%), and Africa–Asia (+12.1%) also showed strong increases.

The latest data indicate that while some markets face headwinds from changing trade policies and economic uncertainty, other regions and routes continue to see robust growth driven by both ongoing recovery and structural trends within global supply chains.