IATA Reports Growth in Global Air Cargo Demand Amid Trade Hurdles
Overview of June Cargo Performance
The International Air Transport Association (IATA) reported an increase of 0.8% in global air cargo demand for June 2025 compared to the same month last year. Alongside this, available cargo capacity increased by 1.7% year-over-year.
Willie Walsh, IATA’s Director-General, noted: “Overall, air cargo demand grew by a modest 0.8 percent year-on-year in June, but there are very differing stories behind that number for the industry’s major players. Trade tensions saw North American traffic fall by 8.3% and European growth stagnate at 0.8%. But Asia-Pacific bucked the trend to report a nine percent expansion. Meanwhile, disruptions from military conflicts in the Middle East resulted in a 3.2% decline in cargo traffic.”
“Emerging clarity on US tariffs allows businesses greater confidence in planning. However, the new deals lead to significantly higher tariffs on goods entering the US than a few months ago.” Despite these challenges, Walsh stresses the need for increased trade facilitation and digitalization to improve security and efficiency in trade operations.
Regional Highlights
- Asia-Pacific: 9% growth in demand with 7.8% increased capacity.
- North America: 8.3% decrease in demand and 5.1% drop in capacity.
- Europe: 0.8% demand growth and 2.6% capacity rise.
- Middle East: 3.2% decrease in demand and 1.5% capacity increase.
- Latin America: Demand growth of 3.5% despite a 0.4% capacity decline.
- Africa: 3.9% increase in demand along with a 6.2% capacity boost.
In summary, while some regions faced setbacks, others, particularly the Asia-Pacific, saw robust growth in air cargo demand amid evolving trade dynamics.
