Middle East Air Cargo Sees Modest Gains in July

Middle East air cargo demonstrated moderate growth against a backdrop of regional disruptions and quickly shifting global trade dynamics.

According to International Air Transport Association (IATA), Middle Eastern carriers logged a 2.6% year‑on‑year increase in cargo demand during July. Remarkably, capacity expanded even more, by 5.9%.

This gap between capacity and demand caused cargo load factor to contract by 1.4 percentage points, putting it at roughly 44.6%. In other words, while more space was available, planes were under-utilized compared to the same month last year.

Global Context and Trade Lanes

Globally, July was a strong performing month: Total air cargo demand increased by 5.5%, with international operations climbing 6.0%. Capacity also grew by 3.9% globally bringing average load factors higher.

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Trade lanes revealed uneven performance. Asia–North America suffered a contraction, but Europe–Asia surged with 13.5% year‑on‑year growth.

Europe–Middle East barely budged recording only a 0.3% gain, though this followed a 5.1% drop in June, signaling some recovery. Asia–Middle East trade was healthier, advancing 8.5% YoY.

Operational Resilience

Operationally, carriers in the Middle East shone. Against a global trend of rising cancellations, the region achieved an impressive 70% reduction in flight cancellations in July an exceptional feat in a turbulent period.

Conditions Influencing July’s Performance

Jet fuel was about 9.1% cheaper year‑on‑year, easing cost pressures for carriers, despite a 4.3% increase from June levels. However, with global PMI at 49.66 (below the 50 growth threshold) and new export orders negative at 48.2, broader demand softened.

Despite ongoing challenges, Middle Eastern air cargo showed resilience and operational agility in July - expanding capacity, maintaining service reliability, and navigating a shifting global logistics environment.

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