Air Cargo Market Shows Sustained Double-Digit Growth for Ninth Consecutive Month

Geneva – The International Air Transport Association (IATA) has unveiled data for August 2024, indicating robust growth in the global air cargo sector. For the ninth month in a row, demand has experienced double-digit year-on-year growth, with total demand measured in cargo tonne-kilometers (CTKs) rising by 11.4% compared to August 2023. Notably, international operations saw an even stronger increase of 12.4%.

Key Insights

• Capacity Expansion: The capacity available for air cargo, represented as available cargo tonne-kilometers (ACTKs), increased by 6.2% relative to August 2023, with international operations showing an 8.2% rise. This growth is significantly driven by a 10.9% increase in bellyhold capacity on passenger flights, contributing to an all-time high in overall industry capacity.
• Strong Financial Performance: Despite the soaring capacity, yields have surged by 11.7% over the previous year, marking a 2% increase from the prior month and standing 46% above pre-pandemic levels. Willie Walsh, IATA’s Director General, remarked on the positive trajectory of the sector, highlighting factors such as gradual growth in global trade, the thriving e-commerce landscape, and ongoing constraints in maritime shipping capacity.

Economic Context

The operating environment reveals a mixed landscape:

• Industrial Production and Trade: Industrial production remained stable month-on-month, while global cross-border trade saw a slight decline of 0.3%.
• Purchasing Managers Index (PMI): Both the global manufacturing output PMI (49.9) and the new export orders PMI (48.4) fell below the neutral 50-mark, signaling contraction in these areas.
• Inflation Trends: Inflation exhibited varied patterns; in the US and EU, rates dropped to 2.6% and 2.4%, respectively, the lowest since 2021. Conversely, Japan’s inflation increased to 3.0%, the highest in ten months, while China’s rate crept up to 0.7%.

Regional Performance Analysis

• Asia-Pacific: This region experienced the highest demand growth at 14.6%, with significant increases in air cargo demand on the Asia-Africa, Asia-Europe, and intra-Asia markets. Capacity rose by 8.6% year-on-year.
• North America: Carriers in North America saw a modest demand increase of 4.8%, the lowest among regions. However, demand on the Asia-North America trade lane, the largest by volume, grew by 9.3%. Capacity rose by 2.4%.
• Europe: European airlines reported a 13.5% increase in demand, driven largely by the Middle East-Europe trade lane, which surged by 28.9%. Intra-European demand also saw a healthy growth of 15.0%, with overall capacity increasing by 9.4%.
• Middle East: Carriers in the Middle East recorded a demand growth of 13.5%, bolstered by strong performance on both the Middle East-Europe and Middle East-Asia routes. Capacity rose by 4.0%.
• Latin America: Latin American carriers achieved a demand growth of 14.2%, alongside an 8.0% increase in capacity.
• Africa: African airlines experienced a 7.5% rise in demand, with the Africa-Asia market growing by an impressive 21.1%. Capacity for this region increased by 11.4%.

Conclusion

The air cargo market’s performance in August 2024 reflects a dynamic and growing sector, characterized by increased demand and capacity. This sustained double-digit growth underscores the vital role of air cargo in global trade, driven by e-commerce and ongoing logistical challenges in other transportation modes.

Notes for Editors:
IATA represents around 330 airlines, accounting for over 80% of global air traffic.

Measurement Terms:

• CTK: Cargo Tonne-Kilometers, measuring actual cargo traffic.
• ACTK: Available Cargo Tonne-Kilometers, measuring total cargo capacity available.
• CLF: Cargo Load Factor, indicating the percentage of ACTKs utilized.