IATA Reports Continued Growth in Global Air Cargo for January 2025

The International Air Transport Association (IATA) has released data for global air cargo markets in January 2025, showing sustained growth for the 18th consecutive month.

Key Highlights:

• Total demand, measured in cargo ton-kilometres (CTK), increased by 3.2% compared to January 2024, with international operations seeing a 3.6% rise.
• Capacity, measured in available cargo ton-kilometres (ACTK), grew by 6.8% year-on-year (7.3% for international operations).

Moderation in Growth Trends

IATA Director General Willie Walsh acknowledged the sector’s continued expansion but noted a slowdown compared to previous double-digit growth rates in 2024.

“January marked 18 consecutive months of air cargo growth, but the 3.2% YoY increase reflects a moderation from the peaks seen last year. Additionally, while yields remain above January 2024 levels, they declined 9.9% from December, with cargo load factors also dropping by an average of 1.5%,” he stated.

Walsh also highlighted key external factors influencing the market, including trade growth, declining fuel costs, and expanding e-commerce. However, he warned of potential tariff-driven trade policies under the new U.S. Trump administration, which could impact market conditions. “Fortunately, the air cargo industry is highly adaptable to shifts in the operating environment,” he added.

Market and Economic Indicators

• Industrial production increased 2.6% YoY in December.
• Global goods trade grew for the ninth consecutive month, rising 3.3% in December.
• The Purchasing Managers’ Index (PMI) for global manufacturing output stood at 50.62 in January, the highest level since July 2024, signaling growth. However, the PMI for new export orders remained slightly below the 50-growth threshold at 49.37.
• Consumer inflation in the U.S. and Europe rose by 0.1% to 3.0% and 2.8%, respectively. In China, inflation rebounded to 0.5% in January after four months of decline.

Regional Performance in January 2025

• Asia-Pacific: Demand rose 7.5% YoY, with a 10.9% increase in capacity.
• North America: Demand grew 5.3% YoY, while capacity increased 7.5%.
• Europe: Demand saw a 1.3% YoY rise, with a 3.5% capacity increase.
• Middle East: Demand dropped 8.4% YoY, the slowest among regions, with a 1.2% capacity decrease.
• Latin America: Recorded the strongest growth, with demand surging 11.2% YoY and capacity rising 10.6%.
• Africa: Demand declined 3.4% YoY, while capacity expanded 5.4%.

Trade Lane Growth and Outlook

Most international routes experienced growth in January, fueled by increasing e-commerce demand in the U.S. and Europe. However, airlines continue to navigate ongoing capacity constraints in ocean shipping, which is boosting air freight demand.

Despite some headwinds, the global air cargo industry remains resilient, with market dynamics continuing to evolve in response to external economic and policy factors.