Air Cargo Demand Declines in February

The International Air Transport Association (IATA) released data for February 2025 global air cargo markets with the Middle East showing an 11.9% year-on-year decrease in demand growth for air cargo in February, the slowest among the regions. Capacity decreased by 4.0% year-on-year.

Global demand declined by 0.1% compared to February 2024 levels (+0.4% for international operations). This marks the first decline since mid-2023. Capacity decreased by 0.4% compared to February 2024 (+1.1% for international operations). 

Willie Walsh, IATA’s Director General said: “February saw a small contraction in air cargo demand, the first year-on-year decline since mid-2023.

"Much of this is explained by February 2024 being extraordinary—a leap year that was also boosted by Chinese New Year traffic, sea lane closures and a boom in e-commerce.

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"Rising trade tensions are, of course, a concern for air cargo. With equity markets already showing their discomfort, we urge governments to focus on dialogue over tariffs.”

The industrial production index rose 3.2% year-on-year in January, the highest growth in two years and world trade expanded by 5%. Meanwhile, jet fuel prices averaged US$94.6/barrel in February, a 2.1% drop from January.

Also in February, the Purchasing Managers Index (PMI) for global manufacturing output was above the 50-mark (51.5), indicating growth. The PMI for new export orders rose slightly to 49.60 from the previous month, remaining just shy of the 50-mark, which is the growth threshold.

Meanwhile, consumer inflation remained elevated in the US, Europe, and Japan, easing only slightly from the previous month. In contrast, China recorded its first decline in consumer prices in 11 months, reinforcing signs of persistent deflationary pressure in the economy.

The Trans-Pacific corridor remained the busiest trade lane in February. Intra-Asia led growth, becoming the fifth busiest. Europe–Asia and Transatlantic routes also expanded, while Middle East–Asia and European routes declined.

Read More: China to USA Air Cargo Market Weakens in February