IATA reports ninth straight months of double-digit growth for Air Cargo in August

•    Total demand, measured in cargo tonne-kilometers (CTKs*), rose by 11.4% compared to August 2023 levels (12.4% for international operations). This is the ninth consecutive month of double-digit year-on-year growth, with overall levels reaching heights not seen since the record peaks of 2021.

•    Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 6.2% compared to August 2023 (8.2% for international operations). This was largely related to the growth in international belly capacity, which rose 10.9% on the strength of passenger markets.  Industry-wide capacity has reached an all-time high.

“We continue to see very good news in air cargo markets. The sector recorded a second consecutive month of record high demand year-to-date. Even with record levels of capacity, yields are up 11.7% on 2023, 2% on the previous month, and 46% above pre-pandemic levels. This strong performance is underpinned by slow but steady growth in global trade, booming e-commerce, and continuing capacity constraints on maritime shipping,” said Willie Walsh, IATA’s Director General.

Several factors in the operating environment should be noted:

•    Industrial production stayed level in August month-on-month and global cross-border trade fell marginally with -0.3%.

•    In August both the Purchasing Managers Index (PMIs) for global manufacturing output and the PMI for new export orders were below the 50-mark at 49.9 and 48.4 respectively, indicating contraction.

•    Inflation saw a mixed picture in August. In the US and EU, inflation rates fell to 2.6% and 2.4% respectively, the lowest rates since 2021. In contrast, Japan’s inflation ticked up 0.3 percentage points to 3.0%, the highest rate in ten months. China’s inflation rate continued its moderate upward trend, growing by 0.1 percentage points to reach 0.7%, the highest rate in six months.

August Regional Performance

North American carriers saw 4.8% year-on-year demand growth for air cargo in August– the lowest of all regions. Demand on the Asia-North America trade lane, the largest trade lane by volume, grew by 9.3% year-on-year, while the North America-Europe route saw a more modest increase of 6.1%. August capacity increased by 2.4% year-on-year.

European carriers saw 13.5% year-on-year demand growth for air cargo in August. The Middle East–Europe trade lane led growth, up 28.9%, maintaining a streak of double-digit annual growth that originated in September 2023. The Europe–Asia route, the second largest market, was up 18.4%. Within Europe also saw double-digit growth, up 15.0%. August capacity increased 9.4% year-on-year.

Middle Eastern carriers saw 13.5% year-on-year demand growth for air cargo in August. As mentioned above, the Middle East–Europe market performed particularly well surging 28.9%, ahead of Middle East-Asia which grew by 13.5% year-on-year. August capacity increased 4.0% year-on-year.

Latin American carriers saw 14.2% year-on-year demand growth for air cargo in August. Capacity increased 8.0% year-on-year.

African airlines saw 7.5% year-on-year demand growth for air cargo in August. Demand on the Africa–Asia market increased by 21.1% compared to August 2023, maintaining a streak of double-digit annual growth that originated in the second half of 2023. August capacity increased by 11.4% year-on-year.