Global air cargo demand in July increased by 5.5% year-on-year measured in freight tonne-kilometers compared to July 2024 levels.

International operations recorded a 6.0% increase, while capacity, measured in available freight tonne-kilometers, rose by 3.9% year-on-year and by 4.5% for international operations, according to data from the International Air Transport Association (IATA).

IATA’s Director General, Willie Walsh, stated that most major trade routes saw growth except for the Asia-North America route, which declined by 1.0% year-on-year. He attributed the sharp drop in e-commerce following the end of US tariff exemptions on small shipments to shippers advancing shipments to avoid higher import tariffs to the US.

Walsh added that August is expected to reveal more clearly the impact of changing US trade policies. While focus remains on US-related markets, it is important to consider the broader global network, as one-fifth of air cargo passes through the Europe-Asia route, which continued its growth for the 29th consecutive month with a 13.5% annual increase in July.

Global goods trade grew by 3.1% year-on-year in June. Jet fuel prices fell by 9.1% in July compared to last year but rose 4.3% compared to June, easing operational costs for airlines.

The global manufacturing sector contracted in July, with the Purchasing Managers’ Index dropping to 49.66 points, marking the second time below the growth threshold of 50 since January. New export orders remained negative at 48.2 for the fourth consecutive month, reflecting declining confidence amid uncertainty over US trade policies.

Asia-Pacific carriers recorded the highest growth in air cargo demand at 11.1% year-on-year, with capacity rising 7.3%. North American carriers saw a slight demand increase of 0.7% but a capacity decline of 0.6%.

In Europe, demand rose 4.1% with capacity up 4.0%. Middle Eastern carriers grew demand by 2.6% and capacity by 5.9%. Latin American carriers saw demand increase by 2.4% and capacity by 3.8%.

African carriers achieved strong demand growth of 9.4%, while capacity slightly declined by 0.1% compared to last year.

Air cargo volumes in July showed notable increases across most major trade lanes, except the Middle East-Europe route which saw a slight increase, and the Asia-North America route which declined for the third consecutive month.