Global air cargo demand up in June despite trade disruptions

Air cargo demand up 0.8% year-on-year in June globally, as 'emerging clarity on US tariffs allows businesses greater confidence in planning,' says International Air Transport Association

By Mucahithan Avcioglu

ISTANBUL (AA) - Total air cargo demand around the globe was up 0.8% on an annual basis in June despite trade tensions, the International Air Transport Association (IATA) said on Thursday.

Total air capacity – available cargo ton-kilometers (ACTK) – rose 1.7% over the same period, the group said.

Regionally, the largest growth in air cargo demand was in Asia-Pacific air carriers, with 9% growth, followed by African airlines with a 3.9% increase, Latin American carriers with 3.5% and European airlines with 0.8%.

Conversely, air cargo demand posted a 8.3% decline for North American carriers. Middle Eastern carriers also saw a 3.2% year-on-year decrease.

Willie Walsh, IATA’s director general, said: "The June air cargo data made it very clear that stability and predictability are essential supports for trade. Emerging clarity on US tariffs allows businesses greater confidence in planning."

However, Walsh said they cannot overlook the way the "deals" being struck by the US and its trade partners are resulting in "significantly" higher tariffs on goods imported into the US than the rates just a few months ago.

"The economic damage of these cost barriers to trade remains to be seen. In the meantime, governments should redouble efforts to make trade facilitation simpler, faster, cheaper and more secure with digitalization,” he added.

The IATA said several factors in the operating environment should be noted such as a 3.2% rise in world industrial production in May and a 3.5% increase in global goods trade.

"The June jet fuel price was 12% lower year-on-year, a fourth consecutive year-on-year monthly decline. It was, however, 8.6% up on May prices," the statement said.

It also noted that the global manufacturing rebounded in June, with the purchasing managers' index (PMI) rising above the 50 mark to 51.2.

PMI for new export orders improved by 1.2 index points but remained in negative territory (49.3), under pressure from recent US trade policy shifts.

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