Air Cargo demand up in April amid Middle East disruption
Global air cargo demand rose 4 pc year-on-year (YoY) in April, driven by strong Asia-linked trade flows, even as capacity declined 0.4 pc and geopolitical disruptions, rising fuel costs and uneven regional performance continued to shape global trade conditions, according to the International Air Transport Association (IATA), a global aviation body representing over 300 airlines worldwide.
In a press statement, IATA says that air cargo demand continued to be supported by strong Asia-linked trade flows, even as the operating environment became more complex due to geopolitical tensions, rising fuel costs and shifting trade routes.
Willie Walsh
“Air cargo demand grew 4 pc year-on-year in April, driven by strong Asia-linked trade flows. But this positive news masks a more complex operating environment. Severe disruption at major Gulf hubs due to the war in the Middle East continued to reshape trade routes and constrain capacity on key corridors. With dedicated freighters carrying much of the growth, air cargo is once again keeping supply chains moving amid trade disruptions. The coming months will test how well the sector can absorb continued geopolitical uncertainty and elevated operating costs,” says Willie Walsh, Director General, IATA.
It adds that global trade contracted 2.1 pc month-on-month in March after four consecutive months of growth, underlining continued vulnerability to geopolitical shocks. At the same time, jet fuel prices rose sharply by 121.1 pc YoY in April, alongside a 77.7 pc increase in crude oil prices, adding further pressure on operating costs.
Also Read: 2022 air traffic recovered to 68.5 pc of 2019 level says IATA
According to the statement, despite these headwinds, manufacturing indicators remained supportive, with the Purchasing Managers Index (PMI) rising 1.9 points to 53.4 in April, while new export orders stood at 50.2, both above the 50-point expansion threshold, signalling continued underlying demand strength for air cargo.
The statement says that regionally, Asia Pacific airlines led growth with a 10.5 pc YoY increase in demand, followed by Europe at 6 pc and North America at 5 pc. Africa posted a 7.7 pc rise, while Latin America and the Caribbean declined 2.8 pc. Middle Eastern carriers recorded an 18.2 pc drop in demand, reflecting severe disruption across Gulf-linked corridors.
The statement adds that trade lane performance showed strong divergence, with Europe-Asia rising 16.2 pc and Asia within regional markets up 13 pc, while Middle East-linked routes saw sharp contractions, including Middle East-Asia down 22.4 pc and Europe-Middle East down 25.9 pc. Africa-Asia trade remained strong, growing 12.8 pc, supported by sustained demand momentum.
IATA adds that while dedicated freighters have played a key role in supporting recent demand growth, the sector will continue to face pressure from geopolitical instability, elevated fuel costs and uneven trade recovery across regions in the months ahead.