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Mid East Info
3 days ago
- Business
- Mid East Info
Air Cargo Demand up 5.8% in April - Middle East Business News and Information
The International Air Transport Association (IATA) released data for April 2025 global air cargo markets showing: Total demand, measured in cargo tonne-kilometers (CTK), rose by 5.8% compared to April 2024 levels (+6.5% for international operations). Capacity, measured in available cargo tonne-kilometers (ACTK), increased by 6.3% compared to April 2024 (+6.9% for international operations). 'Air cargo demand grew strongly in April, with volumes up 5.8% year-on-year, building on March's solid performance. 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,' said Willie Walsh, IATA's Director General. Several factors in the operating environment should be noted: Year-on-year, world industrial production rose 3.2% in March. Air cargo growth outpaced global goods trade, which increased by 6.5% over the previous month. Jet fuel prices dropped 21.2% year-on-year and 4.1% month-on-month, the third consecutive monthly decrease. The global manufacturing PMI rose to 50.5 in April, signaling expansion for the fourth consecutive month. However, the PMI for new export orders fell 2.8 points to 47.2, remaining below the 50 threshold for growth. April Regional Performance: Asia-Pacific airlines saw 10.0% year-on-year demand growth for air cargo in April. Capacity increased by 9.4% year-on-year. North American carriers saw 4.2% year-on-year demand growth for air cargo in April. Capacity increased by 4.6% year-on-year. European carriers saw 2.9% year-on-year demand growth for air cargo in April. Capacity increased 3.3% year-on-year. Middle Eastern carriers saw 2.3% year-on-year increase in demand for air cargo in April, the slowest among the regions. Capacity increased by 5.5% year-on-year. Latin American carriers saw a 10.1% year-on-year increase in demand growth for air cargo in April, the strongest growth among the regions. Capacity increased 8.5% year-on-year. African airlines saw a 4.7% year-on-year increase in demand for air cargo in April. Capacity increased by 9.7% year-on-year. Trade Lane Growth: All international routes experienced growth in April, except for Middle East-Europe, Africa-Asia, and intra-European route. Trade Lane YOY Growth Notes Market Share of Industry Asia-North America +1.9% 2 consecutive months of growth 24.4% Europe-Asia +11.3% 26 consecutive months of growth 20.5% Middle East-Europe -4.6% N/A 5.7% Middle East-Asia +6.7% 2 consecutive months of growth 7.3% Within Asia +10.0% 18 consecutive months of growth 7.0% North America- Europe +9.6% 15 consecutive months of growth 13.3% Africa-Asia -7.9% N/A 1.4% Within Europe -8.8% N/A 2.0% *Share is based on full-year 2024 CTKs.
Malaysian Reserve
3 days ago
- Business
- Malaysian Reserve
IATA: Global air cargo demand up by 5.8% y-o-y in April
KUALA LUMPUR — The International Air Transport Association (IATA) has reported a year-on-year (y-o-y) increase in global air cargo demand for April 2025. Total demand, measured in cargo tonne-kilometres (CTK), rose by 5.8 per cent in volume, building on March's solid performance, IATA said in a statement today. International operations saw an even stronger increase of 6.5 per cent, while in terms of capacity, measured in available cargo tonne-kilometres (ACTK), ticked up by 6.3 per cent globally and 6.9 per cent for international routes. In April 2024, the total demand for international operations was 6.5 per cent higher. In terms of capacity, measured in ACTK, increased by 6.3 per cent, compared with April 2024 of 6.9 per cent for international operations. IATA director general Willie Walsh said seasonal demand for fashion and consumer goods, front-loading ahead of the United States 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,' he said. Several economic indicators supported the uptick in air cargo performance, including the increase in global industrial production, which rose 3.2 per cent y-o-y in March. It also noted that jet fuel prices declined by 21.2 per cent from the previous year and 4.1 per cent compared with March, marking the third consecutive month of falling fuel costs. Besides, global manufacturing Purchasing Managers' Index (PMI) rose to 50.5 in April, signalling continued expansion for the fourth month in a row. 'However, there are also signs of caution. The Purchasing Managers' Index (PMI) for new export orders dropped 2.8 points to 47.2, remaining below the 50-point benchmark that indicates growth,' it said. In terms of regional performance in April, Asia-Pacific airlines saw 10.0 per cent y-o-y demand growth for air cargo, while capacity increased by 9.4 per cent y-o-y. On trade lane growth, IATA said all international routes experienced growth in April, except for Middle East-Europe, Africa-Asia, and intra-European routes. Overall, the data reflect a robust air cargo sector buoyed by economic and seasonal tailwinds, though the potential for policy-driven shifts remains a key risk in the months ahead. The IATA represents some 350 airlines comprising over 80 per cent of global air traffic. In terms of total cargo traffic measured by CTK, the Asia-Pacific region holds the largest market share at 34.2 per cent. North America follows with 25.8 per cent, while Europe accounts for 21.5 per cent of the global share. The Middle East contributes 13.6 per cent to the total cargo traffic, whereas Latin America and Africa represent smaller portions, with 2.9 per cent and 2.0 per cent, respectively. These figures highlight the dominant role of Asia-Pacific, North America, and Europe in global air cargo movement. — BERNAMA
