IATA: Global air cargo demand up 8.2% in November 2024
16th month of consecutive growth
The International Air Transport Association (IATA) has released data for the global air cargo markets in November 2024, reporting a solid performance. Total demand for air cargo, measured in cargo tonne-kilometres (CTK), rose 8.2% compared to November 2023, marking the 16th consecutive month of growth. International operations contributed a 9.5% increase in demand, highlighting robust global trade. At the same time, capacity, measured in available cargo tonne-kilometres (ACTK), grew by 4.6%, with international capacity increasing by 6.5%.
IATA’s Director General Willie Walsh said November was a strong month for the air cargo industry. The 8.2% demand growth significantly outpaced the 4.6% increase in cargo capacity, suggesting a tightening market that has proven beneficial for the sector.
Fuel costs were 22% lower than the previous year, further supporting profitability, and yields grew by 7.8%. Despite the positive outlook, Walsh pointed out that inflation, geopolitical uncertainties, and trade tensions remain risks to monitor in the upcoming year.
Several key indicators also painted a mixed picture of the global economic environment. Industrial production increased 2.1% year over year in October, while global goods trade grew for the seventh consecutive month, up 1.6%.
However, the Purchasing Managers Index (PMI) for global manufacturing output remained above the neutral 50 mark in November, indicating growth. Yet, the PMI for new export orders remained below 50, highlighting ongoing uncertainty and sluggishness in global trade.
The United States saw a slight rise in its headline inflation, with the Consumer Price Index (CPI) climbing to 2.7% in November. In Europe, the inflation rate increased by 0.2 percentage points to 2.5%, while in China, inflation fell to just 0.2%, raising concerns about an economic slowdown in the region.
Looking at the regional breakdown, Asia-Pacific airlines experienced the most substantial year-on-year demand growth, with a 13.2% increase in November 2024. A 9.4% growth in capacity accompanied this. North American carriers saw a 6.9% increase in demand, with capacity rising by 2.2%.
European carriers reported a more moderate 5.6% increase in demand, with capacity growing by 4.3%. Meanwhile, Middle Eastern carriers saw a 3.6% growth in demand, although capacity decreased by 0.6%.
Air cargo demand grew by 11.6% in Latin America, and capacity rose by 6.4%. African airlines saw the smallest increase in demand, with a 0.7% decrease in year-on-year figures. However, capacity increased slightly by 0.4%, indicating a sluggish performance in the region compared to others.
Global trade lane growth continues to be strong, with international routes experiencing a 9.5% year-on-year increase in November. This trend has been consistent for 16 months, as airlines benefit from the growing e-commerce demand in key markets like the United States and Europe.
Additionally, capacity constraints in ocean shipping continue to drive air cargo growth as companies seek faster, more reliable transportation options.
According to IATA, the air cargo industry is set to close 2024 on a profitable note, driven by strong demand growth and cost advantages from lower fuel prices. Despite some risks, such as inflationary pressures, geopolitical tensions, and trade uncertainties, the outlook for 2025 remains optimistic, with continued robust performance expected, particularly in international trade. However, IATA cautions that these risks should be monitored closely to ensure the sector’s stability.
Image: According to IATA, the air cargo industry is set to close 2024 on a profitable note. Credit: Air France
