Close Menu
    What's Hot

    U.S. Polo Assn. Expands Collegiate Partnership Program to Record 70 Teams for 2026 Season

    March 5, 2026

    Formerra Appoints Tom Kelly as Chief Executive Officer

    March 4, 2026

    OMP Unveils Decision-Centric Planning to Accelerate Supply Chain Decision Velocity

    March 4, 2026
    China AliveChina Alive
    • Automotive
    • Business
    • Entertainment
    • Health
    • Lifestyle
    • Luxury
    • News
    • Sports
    • Technology
    • Travel
    China AliveChina Alive
    Home » Air cargo market shows steady growth despite trade challenges
    Business

    Air cargo market shows steady growth despite trade challenges

    July 2, 2025
    Facebook WhatsApp Twitter Pinterest LinkedIn Telegram Tumblr Email Reddit VKontakte

    Global air cargo demand increased by 2.2 percent in May 2025 compared to the same period last year, according to the latest data released by the International Air Transport Association (IATA). The report shows that international air cargo operations recorded a slightly stronger growth rate of 3.0 percent, highlighting the sector’s steady performance despite prevailing economic challenges. The growth in demand, measured in cargo tonne-kilometers (CTK), comes alongside a 2.0 percent rise in overall cargo capacity, based on available cargo tonne-kilometers (ACTK).

    Air cargo market shows steady growth despite trade challenges

    For international operations, cargo capacity expanded by 2.6 percent year-on-year. The modest increase in capacity reflects airlines’ efforts to adjust to evolving market conditions while maintaining operational flexibility. Willie Walsh, Director General of IATA, noted that the uptick in global air cargo volumes is a positive sign, even as certain trade routes face disruptions. “Air cargo demand globally grew 2.2 percent in May. That is encouraging news as a 10.7 percent drop in traffic on the Asia to North America trade lane illustrated the dampening effect of shifting U.S. trade policies.

    Even as these policies evolve, already we can see the air cargo sector’s well-tested resilience helping shippers to accommodate supply chain needs to flexibly hold back, re-route or accelerate deliveries,” Walsh said. The broader economic environment presented mixed signals for the air cargo sector. Global industrial production increased by 2.6 percent in April 2025 compared to the previous year, while air cargo volumes during the same period grew by 6.8 percent. This growth outpaced the 3.8 percent increase recorded in global goods trade, indicating that air cargo continues to serve as a critical component of international supply chains, especially for time-sensitive and high-value goods.

    IATA reports steady growth in air freight operations

    Fuel costs, a significant factor for air cargo operators, have provided some relief. Jet fuel prices in May 2025 were 18.8 percent lower than in May 2024 and declined by 4.3 percent compared to April 2025. The lower fuel prices have eased operational expenses for carriers, supporting their ability to adapt to fluctuating demand. However, the global manufacturing sector showed signs of weakness in May, with the Purchasing Managers’ Index (PMI) falling to 49.1.

    A PMI below 50 indicates contraction, underscoring ongoing pressures within global production lines. Additionally, new export orders remained subdued at a reading of 48, reflecting the broader impact of recent U.S. trade policy changes on international commerce. Despite these headwinds, the air cargo industry continues to demonstrate resilience, supported by flexible logistics networks and adaptive supply chain strategies. Industry observers will be closely monitoring the coming months for further developments in trade policies and economic indicators that may influence air cargo demand. – By MENA Newswire News Desk.

    Related Posts

    Saudi Arabia bans Indonesian poultry and table eggs

    March 4, 2026

    India and Canada reset ties with trade and uranium deal

    March 2, 2026

    Exus Renewables to buy 60% stake in Masdar Portugal wind

    February 28, 2026

    Bank of Korea holds 2.5% rate and rolls out dot plot

    February 27, 2026

    Zimbabwe halts raw mineral exports and lithium shipments

    February 26, 2026

    India joins Pax Silica initiative, signs AI pact with US

    February 22, 2026
    Latest News

    Apple launches M5 Pro and M5 Max MacBook Pro lineup

    March 4, 2026

    CUPERTINO: Apple on Tuesday introduced updated 14-inch and 16-inch MacBook Pro models powered by its new M5…

    Apple launches M5 Pro and M5 Max MacBook Pro lineup

    March 4, 2026

    Saudi Arabia bans Indonesian poultry and table eggs

    March 4, 2026

    Apple expands iPhone 17 lineup with iPhone 17e

    March 3, 2026

    India and Canada reset ties with trade and uranium deal

    March 2, 2026

    Samsung India opens Galaxy S26 series pre-orders

    March 2, 2026

    UAE expands aircraft maintenance and repair as MRO hub

    March 2, 2026

    Exus Renewables to buy 60% stake in Masdar Portugal wind

    February 28, 2026
    © 2026 China Alive | All Rights Reserved
    • Home
    • Contact Us

    Type above and press Enter to search. Press Esc to cancel.