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Asia leads air cargo recovery with 10% growth as global demand soars

Air cargo is flying high again, with Asia leading the charge. According to data from the International Air Transport Association (IATA), global air freight demand surged 5.8 per cent year-on-year in April 2025, with Asia-Pacific carriers delivering a standout performance at 10 per cent growth. The rise was driven by seasonal shipping of fashion and consumer goods — some of it front-loaded ahead of US tariff changes — and a 21.2 per cent drop in jet fuel prices over the past year. Asia-Pacific leads recovery Asia-Pacific carriers posted a 10 per cent year-on-year increase in demand, with capacity up 9.4 per cent. This reflects strong intra-regional trade and continued resilience on Europe-Asia routes, which grew 11.3 per cent in April — marking 26 consecutive months of expansion. India's exporters could benefit from this momentum. In April, India's Flash Purchasing Managers' Index (PMI) climbed to 60.0, up from 59.5 in March, the strongest pace of growth in eight months. The uptick was driven by strong international demand for services and manufactured goods, with new export orders growing at their fastest pace since September 2014. Regional trends in air cargo Latin American airlines saw the highest growth at 10.1 per cent, while North American carriers posted a 4.2 per cent increase. European carriers recorded a more modest 2.9 per cent rise, while West Asian airlines saw the slowest growth at 2.3 per cent. 'Air cargo demand grew strongly in April, building on March's solid performance,' said Willie Walsh, IATA's Director General. 'While the outlook is encouraging, global trade stresses and shifting policies, especially in the US, will require airlines to stay flexible in the coming months.' Mixed trends in trade lanes IATA noted that all international trade routes except for West Asia-Europe, Africa-Asia, and intra-European routes recorded growth. Europe-Asia routes saw an 11.3 per cent surge, continuing the 26-month growth streak. In contrast, Africa-Asia traffic fell by 7.9 per cent, and intra-European cargo declined by 8.8 per cent. Industry outlook: Cautious optimism Air cargo capacity rose 6.3 per cent from last year, while freight rates showed signs of improvement. Jet fuel prices have declined for three straight months, with a 4.1 per cent drop in April alone. The global manufacturing PMI ticked up to 50.5, signalling modest expansion, though the new export orders index slipped to 47.2, below the threshold for growth.