Air cargo demand surges in April, driven by e-commerce and capacity constraints

According to the International Air Transport Association (IATA), air cargo demand remained strong in April, marking the fifth consecutive month of double-digit year-on-year growth, despite a slight slowdown in month-on-month growth. IATA has published data showing that total demand measured in cargo tonne kilometers (CTK) increased by 11.1% compared to April 2023 levels.

The industry association attributes this strong growth to booming e-commerce and capacity constraints in global shipping.

“Air cargo demand started the second quarter with a solid growth of 11.1%,” said Willie Walsh, IATA Director General. “While many economic uncertainties remain, the roots of air transport’s strong performance appear to be deepening. Demand for air cargo has increased in recent months even though the Purchasing Managers’ Index (PMI) indicated a potential decline. With the PMI now showing growth, the prospects for continued strong demand are even more robust.”

Despite recording 21.7 billion CTK worldwide in April, a significant increase of 11.1% year-on-year, this represents a decline of 6.5% compared to the previous month. Capacity measured in available cargo tonne kilometers (ACTK) increased by 7.1% compared to April 2023, reflecting a similar increase to the previous month.

IATA notes that the global economy is performing well, meaning the new export orders PMI is in growth territory for the first time in two years.

Industrial production rose 1.6% year-on-year in March, although global cross-border trade contracted by 0.8%. Inflation remained relatively stable in key markets, reaching 3.4% in the US, 2.6% in the EU and 2.5% in Japan. China recorded a 0.2% year-on-year increase in consumer prices, a positive sign amid concerns about an economic slowdown in the country.

Regionally, airlines from the Asia-Pacific region are leading the way, reporting a 14.0% year-on-year increase in air transport demand in April, driven by a 17.7% increase on the Asia-Europe route. European carriers also recorded strong growth, with demand increasing by 12.7%. Intra-European air transport recorded a record increase of 34.4% compared to April 2023, the highest annual growth in over a decade.

While global air cargo demand continues to show strong growth, supported by buoyant e-commerce activity and maritime shipping restrictions, the industry faces ongoing economic uncertainty. However, with positive PMIs and stable inflation rates, the prospects for continued demand remain promising. As airlines in various regions adapt to these dynamics, the air transport sector is poised for sustained growth, benefiting from the diverse strengths of various global markets.