The International Air Transport Association (IATA) has released its February 2025 data on the global air cargo markets, noting a slight decline in demand overall, although some regions saw improving figures.

The report highlighted the first decline in total demand, measured in cargo tonne-kilometres (CTK), since mid-2023, with a decrease of 0.1% compared to February 2024 (+0.4% for international operations).

Capacity, measured by available cargo tonne-kilometres (ACTK), also saw a decrease of 0.4% from the previous year (+1.1% for international operations).

It should be noted that global air cargo, and subsequent findings in IATA’s report, are affected by external factors in the international market.

Director general of IATA, Willie Walsh, stated: “Much of this is explained by February 2024 being extraordinary—a leap year that was also boosted by Chinese New Year traffic, sea lane closures and a boom in e-commerce. Rising trade tensions are, of course, a concern for air cargo. With equity markets already showing their discomfort, we urge governments to focus on dialogue over tariffs.”

In January, the industrial production index rose 3.2% year-on-year, the highest growth in two years and world trade expanded by 5%, and jet fuel prices saw a 2.1% drop in February, averaging $94.6 per barrel.

In February, the Purchasing Managers Index (PMI) for global manufacturing output was above the 50-benchmark 50 (51.5), indicating growth, while export orders rose slightly from January to 49.60, just shy of the growth threshold.

While consumer inflation eased slightly from January to February, it remained elevated in the US, Europe, and Japan. However, China saw its first decline in consumer prices in almost a year (11 months), reinforcing signs of persistent deflationary pressure on the economy.

Regionally, North American carriers experienced a 0.4% year-on-year decrease in demand for air cargo, and capacity decreased by 3.5% year-on-year. Meanwhile, airlines in Asia Pacific saw growth in both demand, a 5.1% year-on-year increase in February, and capacity, by 2.7% year-on-year.

Latin America had the strongest growth of all the regions in February, with 6% year-on-year demand growth for air cargo, and 7.6% year-on-year increase in capacity.

February saw European carriers experience 0.1% year-on-year decrease in demand growth, as well as 0.2% year-on-year decrease in capacity, with African airlines seeing more severe declines of 5.7% in air cargo demand, and 0.6% in capacity.

The Middle East was among the slowest regions, once again decreasing in demand growth by 11.9% year-on-year, and in capacity by 4.0% year-on-year.

As for trade lane growth, the Trans-Pacific corridor was still the busiest trade lane in February and Intra-Asia rose to the fifth busiest. Europe-Asia and Transatlantic routes also expanded, while Middle East-Asia and European routes declined.