Strong air cargo demand growth extends into July

The International Air Transport Association (IATA) has reported data for global air cargo markets in July 2024. The demand for air cargo, measured in cargo tonne-kilometers (CTKs), increased by 13.6% compared to the levels of July 2023 (14.3% for international operations). This marks the eighth consecutive month of double-digit year-on-year growth, reaching levels not seen since the record peaks of 2021.

Capacity, measured in available cargo tonne-kilometers (ACTKs), rose by 8.3% compared to July 2023 (10.1% for international operations). The increase in capacity was mainly related to the growth in international belly capacity, which rose by 12.8% due to the strength of passenger markets, offsetting the 6.9% growth of international freighter capacity. It’s worth noting that the increase in belly capacity is the lowest in 40 months, while the growth in freighter capacity is the highest since an exceptional jump recorded in January 2024.

“Air cargo demand reached record highs in July year-to-date, with strong growth across all regions. The air cargo industry continues to benefit from global trade growth, e-commerce, and capacity constraints in maritime shipping. With the peak season still to come, it is shaping up to be a very strong year for air cargo. Airlines have shown flexibility in meeting emerging demand trends amidst political and economic uncertainties,” said Willie Walsh, IATA’s Director General.

Notable factors in the operating environment include the Purchasing Managers Index (PMIs) for global manufacturing output, which showed expansion at 50.2 in July. Meanwhile, the global new export orders PMI continued to hover below the 50-mark at 49.4, indicating contraction.

Industrial production remained unchanged in July month-on-month, while global cross-border trade increased by 0.7%. Inflation rates stayed relatively stable in July in the US, Japan, and the EU, with inflation rates of 2.9%, 2.8%, and 2.8% respectively. China’s inflation rate rose by 0.3 percentage points to 0.6%, reaching the highest level in five months.