“Global Air Cargo Up 5.5% in July, Driven by Asia-Pacific and Africa — IATA”

The global air cargo industry posted another month of strong performance in July 2025, with demand rising by 5.5% year-on-year, according to data released by the International Air Transport Association (IATA). The figures highlight resilience across most major trade lanes, despite ongoing pressures from shifting trade policies in the United States and signs of weakness in global manufacturing.

IATA’s latest analysis shows that total demand, measured in cargo tonne-kilometers (CTKs), increased 5.5% in July compared to the same month in 2024. International CTKs grew even faster at 6.0%. Meanwhile, capacity measured in available cargo tonne-kilometers (ACTKs) expanded by 3.9%, reflecting a relatively balanced supply-demand environment that kept load factors stable.

Asia-Pacific and Africa Shine Amid Global Shifts

Regionally, the strongest performers were Asia-Pacific and Africa, which posted double-digit and high-single-digit growth respectively.

• Asia-Pacific carriers saw demand rise 11.1% year-on-year, the highest of all regions. The region’s expansion was driven by strong intra-Asia trade and the Europe–Asia corridor, which has now enjoyed 29 consecutive months of growth, recording a sharp 13.5% increase in July.
• African airlines continued to strengthen their role in global logistics, with demand up 9.4%, even as capacity dipped slightly (-0.1%). Africa–Asia trade lanes were a major driver, posting a robust 12.1% increase.

By contrast, North America remained the slowest region, managing just 0.7% growth, with capacity falling by 0.6%. The region’s weak performance was largely attributed to a 1.0% contraction on the Asia–North America corridor, where U.S. policy shifts have disrupted flows of e-commerce goods.Policy Pressures and Trade Tensions

IATA’s Director General, Willie Walsh, noted that while July’s figures were encouraging, U.S. trade policy continues to weigh heavily on industry sentiment.

“Air cargo demand grew 5.5% in July, a strong result. Most major trade lanes reported growth, with one significant exception: Asia–North America, where demand slipped by 1.0% year-on-year,” Walsh said.

“The expiry of U.S. de minimis exemptions on small shipments and the anticipation of higher tariffs dampened e-commerce volumes. At the same time, shippers frontloaded goods in advance of the policy changes. August will likely reveal the full effect of these shifts. But beyond the U.S., it’s important to remember the global picture — the Europe–Asia lane now accounts for a fifth of all cargo traffic and continues to expand strongly.”

The association emphasized that while trade tensions dominate headlines, structural demand drivers in Asia, Africa, and Europe are keeping the industry on a positive trajectory.

Operating Environment: Relief and Risks

The industry’s operating environment in July provided both tailwinds and headwinds:

• Global goods trade grew 3.1% year-on-year in June, reinforcing demand for air freight.
• Fuel prices provided cost relief: July’s jet fuel price was 9.1% lower year-on-year, though still 4.3% higher than in June.
• Manufacturing outlook weakened: The global Purchasing Managers’ Index (PMI) fell to 49.66, slipping below the 50-growth threshold. Export orders stayed negative at 48.2, signaling caution among exporters amid U.S. policy uncertainty.

Trade Lane Performance: Europe–Asia Still King

IATA’s breakdown of major trade lanes showed sharp contrasts:

• Europe–Asia: +13.5% (20.5% of global market; 29 months of uninterrupted growth).
• North America–Europe: +9.6% (18 straight months of growth).
• Within Asia: +10.3% (driven by regional supply chains and electronics demand).
• Africa–Asia: +12.1% (underscoring Africa’s growing role in global trade).
• Middle East–Asia: +8.5% (fifth consecutive month of expansion).
• Asia–North America: -1.0% (third consecutive monthly decline).
• Middle East–Europe: +0.3% (virtually flat).

Cargo Load Factors Stay Steady

Globally, the cargo load factor (CLF) — a key measure of how efficiently airlines fill available space — rose by 0.7 percentage points to 45.1%.

The highest load factors were recorded in:

• Europe (49.5%)
• Asia-Pacific (49.3%)

Meanwhile, North America remained lowest at 39%, highlighting weak demand relative to capacity in that region.

Industry Outlook: Resilient But Watchful

Despite signs of slowing manufacturing and policy-driven uncertainty in the U.S., IATA stressed that the air cargo sector remains resilient, supported by strong trade flows in Asia, Africa, and Europe.

“Air cargo is proving its importance as a stabilizer in global supply chains,” Walsh said. “Even in times of volatile fuel markets and unpredictable trade environments, the industry is finding ways to adapt. The challenge now is navigating the months ahead, which will test the resilience built over the last two years of steady recovery.”

At a Glance: IATA July 2025 Air Cargo Performance

• Global demand: +5.5%
• Global capacity: +3.9%
• Top growth regions: Asia-Pacific (+11.1%), Africa (+9.4%)
• Weakest region: North America (+0.7%)
• Biggest trade lane growth: Europe–Asia (+13.5%)
• Cargo load factor: 45.1% (up 0.7 percentage points)