Global air cargo demand rises 3.2% in January, growth slows according to IATA

The International Air Transport Association (IATA) reported a 3.2% year-on-year increase in global air cargo demand for January 2025, marking the 18th consecutive month of growth. However, growth has moderated from the double-digit peaks seen in 2024. Capacity expanded by 6.8%, outpacing demand.

Key Market Trends

• Trade & Production: Global goods trade rose 3.3% in December, and industrial production grew 2.6%.
• Manufacturing Outlook: The Purchasing Managers Index (PMI) for global manufacturing reached 50.62, its highest since July 2024, while new export orders remained just below the growth threshold at 49.37.
• Inflation: Consumer inflation rose slightly in the US (3.0%), Europe (2.8%), and China (0.5%).

Regional Performance

• Strongest growth: Latin America (+11.2%), Asia-Pacific (+7.5%), and North America (+5.3%).
• Declines: Middle East (-8.4%) and Africa (-3.4%).
• European growth was modest at 1.3%.

Trade Lane Performance

• Growth regions:
  • North America–Europe (+9.7%)
  • Within Asia (+7.6%)
  • Asia–North America (+6.1%)
  • Europe–Asia (+3.2%)
• Declines:
  • Africa–Asia (-26.1%)
  • Middle East–Europe (-7.3%)

IATA warns of potential trade disruptions due to US tariff policies but highlights e-commerce growth as a positive factor. The industry remains resilient despite shifting market conditions.