Air Cargo Demand Rises 8.5 Percent as Tech Shipments Grow

Global air cargo demand rose 8.5 per cent year-on-year in June, supported by high-value technology products and urgent shipments, while cargo capacity increased at about half that pace, the International Air Transport Association said.

International cargo demand grew 9.6 per cent, while global available cargo capacity increased 4.4 per cent. The stronger demand lifted the global cargo load factor by 1.7 percentage points to 46.9 per cent, IATA said.

The increase came despite weaker broader export activity. Global trade grew 5.2 per cent year-on-year, while the global manufacturing output Purchasing Managers' Index fell 0.5 points to 53.0 in June. The new export orders index remained below 50 for a fourth consecutive month at 49.4, IATA said.

IATA Director General Willie Walsh said air cargo demand grew in every region compared with a year earlier, with North America making the strongest contribution. He said demand growth exceeded available capacity in every region except Latin America and the Caribbean.

North American carriers recorded the strongest regional growth, with demand rising 13.1 per cent and capacity increasing 6.2 per cent. Asia-Pacific carriers reported a 7.9 per cent increase in demand against 4.3 per cent capacity growth, while their load factor reached 51.8 per cent, the highest among the regions, IATA said.

European airlines recorded 6.9 per cent demand growth and 3.7 per cent capacity growth. Middle Eastern carriers saw demand increase 5.6 per cent and capacity rise 2.5 per cent, although IATA said the comparison benefited from a particularly weak June 2025 affected by military conflict and operational disruption.

African airlines increased cargo demand by 4.7 per cent despite cutting capacity by 7.1 per cent. Latin American and Caribbean carriers recorded the weakest demand growth at 3.5 per cent while capacity expanded 9.8 per cent, causing the regional load factor to fall to 33.9 per cent.

Trade routes also showed a wide divergence. Asia-North America cargo traffic increased 14.7 per cent, while traffic within Asia rose 7.2 per cent and Europe-Asia traffic increased 7.1 per cent. Europe-Middle East traffic fell 41.1 per cent and Middle East-Asia traffic declined 4.1 per cent as conflict continued to disrupt Gulf-linked routes.

Jet fuel prices fell 20 per cent from May to June, although they remained 45.8 per cent above their level a year earlier, IATA said. The combination of stronger cargo demand and tighter capacity contrasts with wider manufacturing and trade indicators that remain mixed.

Walsh said the air cargo outlook for the second half of 2026 remained positive but faced risks from continuing hostilities in the Middle East and a renewed US focus on tariffs.