IATA: Air cargo demand continues to grow in April

Seasonal demand, businesses proactively sending goods early to avoid tariffs and falling fuel prices contributed to the increase in air cargo demand in April, the International Air Transport Association (IATA) warned. However, airlines need to remain ready for trade fluctuations.

The association said total demand, measured in cargo tonne-kilometers (CTK), increased by 5.8% compared to the same period last year. Compared to the previous month, demand also recorded an increase of 2.3%. Earlier, in March, demand had increased by 4.4% compared to the same period in 2024, partly due to early shipment consolidation.

In its April Air Freight Market Analysis Report, IATA noted: " Fashion and consumer goods are typically shipped between April and June, ahead of the summer retail cycle, supporting these numbers. Moreover, front-loading aimed at avoiding the upcoming US tariff change on 2 May, 2025, regarding lifting of the de minimis allowance, contributed as well."

Capacity, measured in available cargo tonne-kilometres (ACTK), increased by 6.3%.

The cargo load factor (CLF) – measured by CTK divided by ACTK – was 43.9%, down 0.2 percentage points from April 2024.

“This slight decrease indicates that capacity growth outpaced demand, aligning with broader market trends in air freight utilisation,” IATA said.

Commenting on the industry’s performance in April, IATA Director General Willie Walsh said: “Demand for air cargo grew strongly in April, with volumes up 5.8% year-on-year, following solid growth in March.”

"Seasonal demand for fashion and consumer goods — front-loading ahead of US tariff changes — and lower jet fuel prices have combined to boost air cargo. With available capacity at record levels and yields improving, the outlook for air cargo is encouraging."

"While April brought good news, stresses in world trade are no secret. Shifts in trade policy, particularly in the US, are already reshaping demand and export dynamics. Airlines will need to remain flexible as the situation develops over the coming months."

Aside from the current trade tensions, IATA said air cargo growth has outpaced global trade growth (up 6.5% month-on-month).

The global manufacturing Purchasing Managers’ Index (PMI) rose to 50.5 in April, marking the fourth consecutive month of expansion. However, the PMI for new export orders fell 2.8 points to 47.2, remaining below the 50-point mark that indicates expansion.

In addition, jet fuel prices fell 21.2% year-on-year and 4.1% month-on-month, marking the third consecutive month of decline.

By region, Asia-Pacific and Latin American airlines led the year-on-year demand growth in April, while Middle Eastern airlines saw slower growth.

Latin American airlines recorded a 10.1% increase in cargo traffic, while Asia-Pacific airlines increased by 10%.
African carriers saw a 4.7% increase and North American carriers grew by 4.2%. Meanwhile, European carriers saw growth of 2.9% and Middle Eastern carriers by 2.3%.

In terms of growth on trade routes, IATA noted that all international routes recorded growth in April, except for Middle East-Europe, Africa-Asia and intra-Europe routes.

Source: IATA
 

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Source: Phaata.com (According to Air Cargo News)

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