Air cargo demand up by 8.2% amid inflation, trade tensions

The International Air Transport Association (IATA) yesterday released data for global air cargo markets showing total demand rose by 8.2 per cent in November 2024 – a 16th consecutive month of growth.

Capacity, measured in available cargo tonne-kilometres (ACTK), increased by 4.6 per cent compared to November 2023 (6.5 per cent for international operations).

IATA’s Director-General, Willie Walsh, said it was a good November for air cargo with 8.2 per cent demand growth nearly doubling the 4.6 per cent growth in cargo capacity.

“Fuel costs tracked at 22 per cent below previous-year levels and tight market conditions supported yield growth at 7.8 per cent. All things considered, we are looking to close out 2024 air cargo performance on a profitable note. While this strong performance is very likely to extend into 2025, there are some downside risks that must be carefully watched. These include inflation, geopolitical uncertainties and trade tensions,” Walsh said.

Year-on-year, industrial production rose 2.1 per cent in October. Global goods trade grew for a seventh consecutive month, reporting a 1.6 per cent increase.

The Purchasing Managers Index (PMI) for global manufacturing output was above the 50-mark for November, indicating growth. However, the PMI for new export orders remained below the 50-mark, suggesting ongoing uncertainty and weakness in global trade.

U.S. headline inflation, based on the annual Consumer Price Index (CPI), rose by 0.1 percentage points to 2.7 per cent in November. In the same month, the inflation rate in the EU increased by 0.2 percentage points to 2.5 per cent. China’s consumer inflation fell to 0.2 per cent in November, continuing concerns of an economic slowdown.

Asia-Pacific airlines saw 13.2 per cent year-on-year demand growth for air cargo in November, the strongest growth among the regions. Capacity increased by 9.4 per cent year-on-year.

North American carriers saw 6.9 per cent year-on-year demand growth for air cargo in November. Capacity increased by 2.2 per cent year-on-year.

European carriers saw 5.6 per cent year-on-year demand growth for air cargo in November. Capacity increased 4.3 per cent year-on-year.

Middle Eastern carriers saw 3.6 per cent year-on-year demand growth for air cargo in November. Capacity decreased by 0.6 per cent year-on-year.

Latin American carriers saw 11.6 per cent year-on-year demand growth for air cargo in November. Capacity increased 6.4 per cent year-on-year.

African airlines saw a 0.7 per cent year-on-year decrease in demand for air cargo in November, the slowest among regions. Capacity increased by 0.4 per cent year-on-year.