Global air cargo demand reaches record growth in 2024, driven by strong e-commerce, says IATA
In 2024, global air cargo demand reached a new high, growing by 11.3% compared to the year before. It surpassed the record set in 2021, thanks to increased trade and strong e-commerce growth.
Air cargo demand
In 2024, the total capacity for air cargo increased by 7.4% compared to the previous year. For international operations, the increase was 9.6%, according to a report from the International Air Transport Association (IATA) released on Wednesday.
IATA’s Director General, Willie Walsh, said that demand grew due to strong e-commerce and limits on ocean shipping. He also mentioned that restrictions on airspace, which affected some key long-haul routes to Asia, helped keep prices high.
Air cargo yields (prices) were 1.6% lower in 2024 compared to 2023, but they were still 39% higher than in 2019. Global air cargo yields stopped going down in 2023 and are now about 30% above pre-pandemic levels.
Global trade in goods grew by 3.6% in 2024, which helped increase air cargo demand. International flights had high traffic for the 17th month in a row, with a 7% increase in December. Airlines also benefited from growing e-commerce demand in the US and Europe, as ocean shipping capacity remains limited.
In Asia-Pacific, airlines saw the strongest demand growth in air cargo, with a 14.5% increase in 2024. North American airlines had the lowest growth at 6.6%. European carriers saw an 11.2% increase in demand, and Middle Eastern airlines had a 13% increase.
Big numbers
In 2025, IATA predicts that airlines will earn more than $1 trillion in revenue, despite rising costs and limits on adding more capacity. They expect a net profit of $36.6 billion, which would be a record high for the industry, but still a small profit margin of 3.6%.
What to watch for
IATA predicts air cargo demand will grow by 5.8% in 2025, which is in line with historical trends. Walsh said that economic conditions look good for air cargo, with falling oil prices and continued trade growth. Airlines are expected to benefit from lower jet fuel prices, which are their biggest cost.
However, Walsh also warned that tariffs, especially under the Trump administration, could hurt air cargo by increasing inflation and reducing trade.
Published: 30th January 2025
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