Global Air Cargo Demand Grows Fast in 2024 Thanks to Strong Online Shopping, Says IATA
Air cargo demand reached a record high in 2024, growing by 11.3% compared to the previous year. This surpassed the record set in 2021, thanks to more trade and strong e-commerce growth.
Air Cargo Demand
In 2024, air cargo capacity increased by 7.4% compared to the previous year, with international operations rising by 9.6%, according to a report from the International Air Transport Association (IATA) released on Wednesday.
IATA’s Director General, Willie Walsh, explained that strong demand came from e-commerce and restrictions in ocean shipping. He also mentioned that airspace restrictions on some long-haul routes to Asia helped keep prices high.
In 2024, air cargo yields (prices) averaged 1.6%, lower than in 2023 but 39% higher than in 2019. Yields stopped declining in 2023 and are now about 30% above pre-pandemic levels.
Global trade grew by 3.6% in 2024, which helped boost air cargo demand. International routes had strong traffic for the 17th month in a row, with a 7% increase in December. Airlines also benefitted from rising e-commerce demand in the US and Europe, while ocean shipping faced capacity limits.
Airlines in Asia-Pacific saw the highest growth in demand for air cargo in 2024, at 14.5%. North American carriers had the lowest growth at 6.6%. European carriers saw an 11.2% increase, and Middle Eastern carriers had a 13% growth.
Big Numbers
IATA predicts that in 2025, airlines will make over $1 trillion in revenue, even with rising costs and limited capacity. They expect a net profit of $36.6 billion, which would be a record for the industry, though the profit margin is still low at 3.6%.
What to Watch for
IATA expects air cargo demand growth to slow to 5.8% in 2025. Walsh said that economic factors suggest another strong year for air cargo, with lower oil prices and continued trade growth. Airlines should benefit from lower oil prices, as jet fuel is their biggest cost.
However, the Trump administration’s use of tariffs could hurt air cargo by raising inflation and reducing trade, Walsh warned.
Published: 4th February 2025
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