The International Air Transport Association (IATA) released data for June 2024 global air cargo markets showing continuing strong annual growth in demand. This contributed to an exceptional first-half-year performance for air cargo, with volumes exceeding 2023, 2022, and even the record-breaking 2021 levels.
“Air cargo demand surged in June. Strong growth across all regions and major trade lanes combined for a record-breaking first-half performance in terms of CTKs. Maritime shipping constraints and a booming e-commerce sector are among the strongest growth drivers. Meanwhile, the sector has remained largely impervious to ongoing political and economic challenges and the US customs crackdown on e-commerce deliveries from China. Air cargo looks to be on solid ground to continue its strong performance into the second half of 2024,” said Willie Walsh, IATA’s director.
Several factors in the operating environment should be noted. In June, the Purchasing Managers Index (PMI) for global manufacturing output indicated expansion (52.3), while the new export orders PMI registered a slight contraction, falling below the critical 50-point benchmark to 49.3.
Global cross-border trade expanded 0.1 per cent month-on-month in May, while industrial production stayed level compared to the previous month.
Inflation was a mixed picture in June. In the EU and Japan, inflation rates stayed roughly constant compared to the previous month at 2.6 per cent and 2.8 per cent, respectively, while dropping in the US to 3.0 per cent. In contrast, China’s inflation rate remained near zero (0.3 per cent), reflecting weak domestic demand amid high unemployment, slow income growth, and a crisis in the real estate sector, a trend that has persisted since 2023.
Asia-Pacific airlines saw 17.0 per cent year-on-year demand growth for air cargo in June — the strongest among all regions. Demand for the Africa-Asia trade lane grew by 37.5 per cent year-on-year, while the Europe-Asia, Within Asia and Middle East-Asia trade lanes rose by 20.3 per cent, 21.0 per cent and 15.1 per cent, respectively. Capacity increased by 10.7 per cent year-on-year.
North American carriers saw 9.5 per cent year-on-year demand growth for air cargo in June — the weakest among all regions. Demand on the North America-Europe route saw an increase of 6.7 per cent, while the Asia-North America trade lane, the world’s largest, grew by 12.8 per cent year-on-year, the largest annual increase in five months. June capacity increased by 6.0 per cent year-on-year.
European carriers saw 16.1 per cent year-on-year demand growth for air cargo in June. Intra-European air cargo rose by 16.7 per cent compared to June 2023, the sixth month in a row of double-digit annual growth. Europe–Middle East and Europe–Asia routes saw demand increase by 30.2 per cent and 20.3 per cent respectively. June capacity increased 9.1 per cent year-on-year.
Middle Eastern carriers saw 13.8 per cent year-on-year demand growth for air cargo in June. As mentioned above, the Middle East–Europe market performed particularly well with 30.2 per cent annual growth, ahead of Middle East–Asia, which grew by 15.1 per cent year-on-year. June capacity increased 6.9 per cent year-on-year.
Latin American carriers saw 13.1 per cent year-on-year demand growth for air cargo in June, and capacity increased 15.5 per cent year-on-year. Notably, Latin America posted the second-highest increase in international demand growth, at 17.2 per cent in June, up 6.3 percentage points compared to the previous month.
African airlines saw 11.8 per cent year-on-year demand growth for air cargo in June. Demand on the Africa–Asia market increased by 37.5 per cent compared to June 2023, the strongest performance of all trade lanes. June capacity increased by 23.8 per cent year-on-year.
IATA (International Air Transport Association) represents some 330 airlines comprising over 80 per cent of global air traffic.
