Trade expansion boosts global air cargo demand in May 2024
Africa emerged as the strongest performer
The International Air Transport Association (IATA) has reported robust growth in global air cargo demand for May 2024, marking the sixth consecutive month of double-digit year-on-year expansion.
According to the latest data released by IATA, demand, measured in cargo tonne-kilometres (CTKs), surged by 14.7% compared to May 2023, driven primarily by strong performance in international operations, which saw a growth rate of 15.5%.
In contrast, capacity, measured in available cargo tonne-kilometres (ACTKs), increased by 6.7% year-on-year (10.2% for international operations).
Willie Walsh, Director General of IATA, said: “The air cargo sector experienced significant upward momentum in May, benefiting from increased global trade, a flourishing e-commerce landscape, and ongoing capacity constraints in maritime shipping.
“The outlook remains positive, supported by optimistic forecasts from purchasing managers anticipating continued growth. However, challenges loom, particularly with new US regulations impacting e-commerce deliveries from China, potentially dampening consumer demand and posing hurdles for the Asia-North America trade lane.”
The operating environment reflected several notable trends in May 2024, with global manufacturing output and new export orders signalling expansion with scores of 52.6 and 50.4, respectively, as indicated by purchasing managers’ indicators (PMIs).
Industrial production and cross-border trade also showed month-on-month increases in April, rising by 0.5% and 1.5%, respectively. However, inflation rates varied across regions, with the EU and Japan declining to 2.7% and 2.8%, respectively, while the United States recorded an increase to 3.3%. China’s inflation remained low at 0.3%, reflecting ongoing economic challenges.
Regional performance highlights:
Asia-Pacific: Airlines in this region reported the highest demand growth at 17.8% year-on-year, bolstered by robust performances on key trade lanes such as Africa-Asia (40.6% growth) and intra-Asia routes.
North America: Experienced moderate demand growth of 8.7%, with notable increases on the Asia-North America (12.0%) and North America-Europe (8.9%) trade routes.
Europe: Demand soared by 17.2%, driven by intra-European routes (25.6%) and Europe-Middle East connections (33.8%), highlighting sustained recovery and growth.
Middle East: Achieved 15.3% demand growth, with significant expansions on Europe-Middle East (33.8%) and Middle East-Asia (18.6%) routes, despite a more conservative capacity increase of 2.7%.
Latin America: Recorded a solid demand increase of 12.7%, supported by an 8.0% rise in capacity, indicating steady growth in the region’s air cargo market.
Africa: Emerged as the strongest performer, with demand growth reaching 18.4%, driven by exceptional performance on the Africa-Asia route (40.6%) and substantial capacity expansion of 21.4%.
The May 2024 figures underscore the global air cargo industry’s resilience and dynamism in the face of evolving economic conditions and regulatory changes.
As the sector continues to navigate challenges, including fluctuating inflation rates and regulatory shifts, stakeholders remain optimistic about sustained growth opportunities driven by global trade dynamics and expanding e-commerce activities.
Featured image: Intra-European routes (25.6%) and Europe-Middle East connections (33.8%), highlighting sustained recovery and growth in May 2024. Credit: Bernd Dttrich
