Asia-Pacific Drives 0.8% Global Air Cargo Growth Despite North America's 8.3% Decline

In June, the global air cargo market experienced a modest increase in demand, with a year-on-year growth of 0.8%. This growth was primarily driven by the Asia-Pacific region, which saw a significant increase of 9.0% in cargo demand. Following closely were Latin America with a 3.5% increase and Europe with a 0.8% increase.

However, this growth was offset by a decline in the North American region, where cargo demand decreased by 8.3%. This decline was largely attributed to the implementation of new tariff policies, which created a tense trade environment. Additionally, the Middle East region experienced a 3.2% decrease in cargo demand.

Despite these regional fluctuations, the Asia-North America and Asia-Europe trade routes continued to dominate the industry. However, the Asia-North America trade route has been declining for seven consecutive months, while the Asia-Europe trade route has seen a year-on-year growth rate of 10.6%, marking 28 months of continuous growth.

The Secretary General of the International Air Transport Association highlighted the importance of stability and predictability in trade, noting that the new tariff policies have led to significantly higher tariffs on goods imported into the United States.

While regional conflicts and trade tensions pose challenges, there are signs of industry recovery. In May, global industrial production grew by 3.2% year-on-year, and global merchandise trade increased by 5%. Additionally, the global Purchasing Managers' Index (PMI) for June stood at 51.2, indicating economic expansion.

Regional conflicts have also impacted air cargo in the Middle East, with disruptions in air routes affecting cargo volumes in Iran, Iraq, Israel, and Lebanon for two consecutive months.

On the passenger side, Middle Eastern airlines saw a 0.4% year-on-year decrease in passenger demand. Flights to North America and Europe also experienced declines, with a 7% and 4.4% decrease respectively.

Looking ahead, the International Air Transport Association predicts that by 2025, Middle Eastern airlines will achieve the highest net profit margin globally, at 8.7%. This is expected to generate 62 billion dollars in net profit, surpassing the 61 billion dollars projected for 2024.