Air Cargo demand hits record high for March amid trade uncertainty, says IATA

Global air cargo demand rose 4.4% year-on-year in March 2025, with international volumes up 5.5%, marking a historic high for the month, according to IATA. Capacity also grew 4.3%, with a 6.1% increase in international operations. The growth is partly attributed to businesses front-loading shipments ahead of US tariff changes announced for 2 April, and aided by a 17.3% drop in jet fuel prices.

Regional Highlights:

• Asia-Pacific led with 9.6% growth, fuelled by strong intra-regional and trans-Pacific flows.

• North America followed with 9.5%, while Europe posted 4.5% growth.

• Latin America saw 5.8% growth, Africa slumped -13.4%, and Middle East dipped -3.2%, likely due to strong year-on-year comparisons and Red Sea disruptions.

Key Trade Lane Trends:

• Europe–North America: +8.5%, most active lane in March.

• Asia–North America: +7.3%, rebounding from February’s dip.

• Europe–Asia: +8.3%, with 25 consecutive months of growth.

• Africa–Asia: -40.2%, sharpest decline across all lanes.

Economic Context:

• World industrial output rose 3.2%, trade volumes +2.9%.

• CPI inflation is easing globally: US 2.4%, EU 2.5%, Japan 3.6%, China remains in slight deflation at -0.1%.

IATA’s Director General Willie Walsh noted that while March’s numbers are strong, continued tariff uncertainty may weigh on global trade unless more stable agreements are reached.