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IATA says June air cargo demand up 14%, intl operations up 16%

Demand on Africa–Asia market increased by 37.5% compared to June 2023, strongest performance of all trade lanes.

IATA says June air cargo demand up 14%, intl operations up 16%
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Total air cargo demand, measured in cargo tonne-kilometres (CTKs), rose by 14.1 percent in June 2024 compared to June 2023 levels (15.6 percent for international operations).

This is the seventh consecutive month of double-digit year-on-year growth, according to the latest update from the International Air Transport Association (IATA).

"Capacity, measured in available cargo tonne-kilometres (ACTKs), increased by 8.8 percent compared to June 2023 (10.8 percent for international operations). Total half-year (H1) demand increased by 13.4 percent compared to H12023, by 4.3 percent compared to H1 2022, and by 0.02 percent compared to H1 2021."

Willie Walsh, Director General, IATA says: "Air cargo demand surged in June. Strong growth across all regions and major trade lanes combined for a record-breaking first-half performance in terms of CTKs. Maritime shipping constraints and a booming e-commerce sector are among the strongest growth drivers. Meanwhile, the sector has remained largely impervious to ongoing political and economic challenges, and the U.S. customs crackdown on e-commerce deliveries from China. Air cargo looks to be on solid ground to continue its strong performance into the second half of 2024."

Several factors in the operating environment should be noted, IATA says in its update:

*In June, the Purchasing Managers Index (PMI) for global manufacturing output indicated expansion (52.3) while the new export orders PMI registered a small contraction, falling below the critical 50-point benchmark to 49.3.

*Global cross-border trade expanded 0.1 percent month-on-month in May while industrial production stayed level compared to the previous month.

*Inflation was a mixed picture in June. In the EU and Japan, inflation rates stayed roughly constant compared to the previous month at 2.6 percent and 2.8, percent respectively while dropping in the U.S to three percent.

June regional performance

Asia-Pacific airlines saw 17 percent year-on-year demand growth for air cargo in June — the strongest among all regions. Demand on the Africa-Asia trade lane grew by 37.5 percent year-on-year while the Europe-Asia, Within Asia and Middle East-Asia trade lanes rose by 20.3 percent, 21 percent and 15.1 percent, respectively. Capacity increased by 10.7 percent year-on-year.

North American carriers saw 9.5 percent year-on-year demand growth for air cargo in June — the weakest among all regions. Demand on the North America-Europe route saw an increase of 6.7 percent while the Asia-North America trade lane, the world’s largest, grew by 12.8 percent year-on-year, the largest annual increase in five months. June capacity increased by six percent year-on-year.

European carriers saw 16.1 percent year-on-year demand growth for air cargo in June. Intra-European air cargo rose by 16.7 percent compared to June 2023, the sixth month in a row of double-digit annual growth. Europe–Middle East and Europe–Asia routes saw demand increase by 30.2 percent and 20.3 percent, respectively. June capacity increased 9.1 percent year-on-year.

Middle Eastern carriers saw 13.8 percent year-on-year demand growth for air cargo in June. The Middle East–Europe market performed particularly well with 30.2 percent annual growth, ahead of Middle East–Asia which grew by 15.1 percent year-on-year. June capacity increased 6.9 percent year-on-year.

Latin American carriers saw 13.1 percent year-on-year demand growth for air cargo in June. Capacity increased 15.5 percent year-on-year. Latin America posted the second-highest increase in international demand growth at 17.2 percent in June, up 6.3 percentage points compared to the previous month.

African airlines saw 11.8 percent year-on-year demand growth for air cargo in June. Demand on the Africa–Asia market increased by 37.5 percent compared to June 2023, the strongest performance of all trade lanes. June capacity increased by 23.8% year-on-year.

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