IATA Reports Global Air Cargo Data for May 2024

Dark/Light Mode (05/07/24)  IATA's global air cargo data for May 2024 shows continued growth in demand.

Total demand, measured in cargo tonne-kilometers (CTK), rose by 14.7% compared to May 2023 levels, +15.5% for international operations, the sixth consecutive month of double-digit year-on-year growth.

Capacity, measured in available cargo tonne-kilometers (ACTK), increased by 6.7% compared to May 2023, +10.2% for international operations.

IATA highlights several key factors:

- In May, the Purchasing Managers Index (PMIs) for global manufacturing output and new export orders indicated expansion (52.6 and 50.4 respectively);

- Industrial production and global cross-border trade increased month-on-month in April by 0.5% and 1.5%, respectively; and

Atlas Air Boeing 7474F reg: N407KZ. Picture by Steven Howard of TravelNewsAsia.com

- Inflation saw a mixed picture in May. In the EU and Japan, inflation rates fell to 2.7% and 2.8%, respectively, while rising in the US to 3.3%. In contrast, China’s inflation rate remained near zero (0.3%) reflecting weak domestic demand due to high unemployment, slow income growth and a crisis in the real estate sector, a trend that has persisted since 2023.

“Air cargo demand moved sharply upwards in May across all regions. The sector benefitted from trade growth, booming e-commerce and capacity constraints on maritime shipping. The outlook remains largely positive with purchasing managers showing expectations for future growth,” said Willie Walsh, IATA Director General. “Some dampening, however, could come as the US imposes stricter conditions on e-commerce deliveries from China. Increased costs and transit times for shipments under $800 may deter US consumers and pose significant challenges for growth on the Asia-North America trade lane - the world’s biggest.”

Asia-Pacific airlines saw 17.8% year-on-year demand growth for air cargo in May. Demand on the Africa-Asia trade lane grew by 40.6% y-o-y, while the Europe-Asia, within Asia, and Middle East-Asia trade lanes rose by 20.4%, 19.2% and 18.6%, respectively. Capacity increased by 8.4% y-o-y.

North American carriers saw 8.7% y-o-y demand growth for air cargo in May, the weakest among all regions. Demand on the Asia-North America trade lane grew by 12% y-o-y, while the North America-Europe route increased by 8.9%, the largest demand growth for this route since mid-2022. May capacity increased by 2.5% y-o-y.

European carriers saw 17.2% y-o-y demand growth for air cargo in May. Intra-European air cargo rose by 25.6% compared to May 2023, the fifth month in a row of double-digit annual growth. Europe–Middle East routes saw demand increase by 33.8%, whilst May capacity increased 11.9% y-o-y.

Middle Eastern carriers saw 15.3% year-on-year demand growth for air cargo in May. As mentioned in the previous paragraph, the Middle East–Europe market performed particularly well with 33.8% annual growth. The Middle East-Asia market grew by 18.6% y-o-y, whilst capacity increased 2.7% y-o-y.

Latin American carriers saw 12.7% year-on-year demand growth for air cargo in May. Capacity increased 8% y-o-y.

African airlines saw 18.4% y-o-y demand growth for air cargo in May, the strongest of all regions. Demand on the Africa–Asia market increased by 40.6% compared to May 2023, the strongest performance of all trade lanes. May capacity increased by 21.4% y-o-y.

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