Global air cargo market gains momentum in July

Global air cargo demand increased 3.9% year-on-year in July 2026, according to the latest data released by the International Air Transport Association (IATA).

Measured in cargo tonne-kilometres (CTK), total demand grew 3.9% compared with July 2025, while international demand rose 4.7%.

Cargo capacity also expanded during the month, with available cargo tonne-kilometres (ACTK) increasing 1.7% year-on-year. International capacity grew by 1.8% compared with the same period last year.

Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist, said, “Air cargo demand grew 3.9% year-on-year in July. While all regions recorded growth, airlines in Asia-Pacific, Europe and North America accounted for more than 90% of the overall increase. Dedicated freighters gained market share as belly-hold traffic declined, possibly reflecting demand for larger or specialist shipments and the operational flexibility that freighters can provide. Looking ahead, the outlook remains broadly positive, supported by manufacturing activity, export orders and global trade. However, higher fuel prices, geopolitical tensions and tariff uncertainty will need to be watched carefully.”

Several developments in the broader operating environment continued to influence the air cargo market in July 2026. Global trade grew 7.5% year-on-year, while jet fuel prices increased 12.2% from June and were 56.9% higher than a year earlier.

Global manufacturing activity moderated slightly in June but remained supportive of air cargo demand. The Global Manufacturing Output Purchasing Managers’ Index (PMI) declined by 0.3 points to 52.7, while the New Export Orders Index rose to 50.0, reaching its highest level in three months. Overall, the indicators continued to point to a broadly supportive environment for air cargo demand.

Across regions, North American carriers recorded the strongest growth in air cargo demand in July, rising 4.8% year-on-year, although capacity fell 1.5%. European carriers saw demand increase 4.4%, while Asia-Pacific and Latin American and Caribbean carriers each recorded 4.1% growth. Middle Eastern carriers reported a 1.7% increase in demand, while African airlines posted the weakest growth at 1.1%. On the capacity side, Latin American and Caribbean carriers recorded the highest increase at 7.0%, followed by African carriers at 4.1%, Middle Eastern carriers at 4.0%, Asia-Pacific carriers at 3.0% and European carriers at 1.3%.

Air cargo performance varied significantly across major trade lanes in July. The Asia–North America route recorded the strongest growth, with demand rising 9.2% year-on-year, marking six consecutive months of expansion. Within Asia, demand increased 6.1%, extending its growth streak to 33 months, while Europe–Asia rose 3.1%, marking 41 consecutive months of growth. Europe–North America also rose 2.1%, continuing its expansion for a third month. In contrast, several Middle East-linked routes remained under pressure amid ongoing regional conflict. Europe–Middle East demand fell 16.1%, followed by a 14.1% decline on the Middle East–Asia route. Africa–Asia also contracted 14.7%, marking its second consecutive month of decline.