Global Air Cargo Demand Rises 2.2% Year-Over-Year in May 2025

The International Air Transport Association (IATA) reported a 2.2% year-over-year increase in global air cargo demand for May 2025, measured in cargo tonne-kilometers (CTKs). This growth was primarily driven by a 3.0% increase in international demand, indicating a strong recovery in global trade dynamics. The data also showed that air cargo capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 2.0% year-over-year, with international capacity growing by 2.6%.

IATA's Director General, Willie Walsh, commented on the data, stating that the 2.2% growth in air cargo demand is encouraging. Despite a 10.7% decrease in cargo volumes on the Asia-North America trade lane due to adjustments in U.S. tariff policies, the air cargo industry has demonstrated its resilience. Walsh noted that air cargo continues to help shippers adapt to supply chain demands, whether by delaying shipments, rerouting, or expediting deliveries.

Key indicators of the air cargo operating environment in April 2025 included a 2.6% year-over-year increase in global industrial production. During the same period, air cargo volumes grew by 6.8%, outpacing the 3.8% growth in global trade. Additionally, jet fuel prices in May 2025 were 18.8% lower than the previous year and 4.3% lower than the previous month. The global manufacturing Purchasing Managers' Index (PMI) fell to 49.1 in May, below the 50 contraction/expansion threshold, with new export orders remaining below 50 at 48. This reflects the pressure from recent adjustments in U.S. trade policies.

Regionally, air cargo demand in Asia-Pacific grew the fastest, with an 8.3% year-over-year increase in May, while capacity grew by 5.7%. European airlines saw a 1.6% increase in demand and a 1.5% increase in capacity. Middle Eastern airlines experienced a 3.6% increase in demand and a 4.2% increase in capacity. North American airlines, however, saw a 5.8% decrease in demand and a 3.2% decrease in capacity, the slowest growth among all regions. Latin American airlines reported a 3.1% increase in demand and a 3.5% increase in capacity, while African airlines saw a 2.1% decrease in demand despite a 2.7% increase in capacity.

The Asia-North America trade lane experienced a significant decrease in demand due to the waning effect of pre-loading (shipping goods to markets before tariff policies took effect) and adjustments to minimum exemptions for small packages, particularly those related to e-commerce. However, other trade lanes showed surprising growth as cargo flows were rebalanced.