The International Air Transport Association (IATA) released data for March 2026 global air cargo markets. Middle Eastern carriers saw a 54.3% year-on-year decrease in demand for air cargo in March, the weakest performance of all regions. Capacity decreased by 52.4% year-on-year.
Meanwhile, global air cargo demand fell by 4.8% compared to March 2025 levels. Capacity decreased by 4.7% compared to March 2025.
Willie Walsh, IATA’s Director General said: “Air cargo demand fell 4.8% in March compared to the previous year. This was mostly due to severe disruptions at major Gulf hubs due to war in the Middle East. The timing of the usual post–Lunar New Year slowdown also added to the decline.
"The underlying demand trends, at this point, appear strong and the recent World Trade Organization and International Monetary Fund revisions to trade and GDP projections continue to see growth in 2026.
"Importantly, air cargo networks are providing the flexibility needed to support global supply chains as they adjust to geopolitical, tariff, and operational strains. All eyes are on fuel supply and price, which are expected to test the industry’s resilience in the coming months."
In the larger operating environment global industrial production grew by 3.1% year-on-year in February, marking the 38th consecutive month of expansion. The global goods trade rose by 8.0% year-on-year in February.
Jet fuel prices rose sharply in March, up 106.6% year-on-year, alongside a 43.1% increase in crude oil prices and a 320% surge in refining margins.
Meanwhile, global manufacturing sentiment remained in growth territory in March, easing slightly from February. The Purchasing Managers’ Index (PMI) stood at 51.4. The PMI for new export orders was 50.1 - both above the 50-point expansion threshold - signaling positive conditions for global air cargo demand.
Read More: Behind the Scenes - How the UAE Aviation Authority is Keeping Gulf Flights Moving