Regional carriers see 15.3% demand growth for air cargo

Muscat: Middle Eastern carriers saw 15.3 percent year-on-year demand growth for air cargo in May, according to the latest data released by the International Air Transport Association (IATA).

“The Middle East–Europe market performed particularly well with 33.8 percent annual growth, ahead of Middle East-Asia which grew by 18.6 percent year-on-year while May capacity increased 2.7 percent year-on-year,” IATA said in its May 2024 global air cargo markets report.

Asia-Pacific airlines saw 17.8 percent year-on-year demand growth for air cargo in May. Demand on the Africa-Asia trade lane grew by 40.6 percent year-on-year, while the Europe-Asia, Within Asia and Middle East-Asia trade lanes rose by 20.4 percent, 19.2 percent and 18.6 percent respectively. Capacity increased by 8.4 percent year-on-year.
North American carriers saw 8.7 percent year-on-year demand growth for air cargo in May —the weakest among all regions. Demand on the Asia-North America trade lane grew by 12 percent year-on-year, while the North America-Europe route saw an increase of 8.9 percent, marking the largest demand growth for this route since mid-2022. May capacity increased by 2.5 percent year-on-year.

European carriers saw 17.2 percent year-on-year demand growth for air cargo in May. Intra-European air cargo rose by 25.6 percent 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 percent. May capacity increased 11.9 percent year-on-year.

"Air cargo demand moved sharply upwards in May across all regions. The sector benefited 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,” IATA Director General said.

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,” said Willie Walsh."