Air Cargo Demand Soars 14.1% in June, Setting Strong Pace for 2024

Volumes exceeded those of 2023, 2022, and even the record-breaking 2021 levels. The data reveals that the total demand, measured in cargo tonne-kilometers (CTKs), rose by 14.1% compared to June 2023 levels (15.6% for international operations), marking the seventh consecutive month of double-digit year-on-year growth. Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 8.8% compared to June 2023 (10.8% for international operations). And the total half-year (H1) demand grew by 13.4% compared to H1 2023, 4.3% compared to H1 2022, and 0.02% compared to H1 2021.

“Air cargo demand surged in June. Strong growth across all regions and major trade lanes combined for a record-breaking first-half performance in terms of CTKs. Maritime shipping constraints and a booming e-commerce sector are among the strongest growth drivers. Meanwhile, the sector has remained largely impervious to ongoing political and economic challenges and the US customs crackdown on e-commerce deliveries from China. Air cargo looks to be on solid ground to continue its strong performance into the second half of 2024,” said Willie Walsh, IATA’s Director General.

Several factors in the operating environment should be noted: In June, the Purchasing Managers Index (PMI) for global manufacturing output indicated expansion (52.3), while the new export orders PMI registered a small contraction, falling below the critical 50-point benchmark to 49.3; Global cross-border trade expanded 0.1% month-on-month in May, while industrial production stayed level compared to the previous month; and, Inflation was a mixed picture in June. In the EU and Japan, inflation rates stayed roughly constant compared to the previous month at 2.6% and 2.8%, respectively, while dropping in the US to 3.0%. In contrast, China’s inflation rate remained near zero (0.3%), reflecting weak domestic demand amid high unemployment, slow income growth, and a crisis in the real estate sector, a trend that has persisted since 2023.

In June, regional air cargo performance varied significantly. Asia-Pacific airlines led with a remarkable 17.0% year-on-year demand growth, the highest among all regions. The Africa-Asia trade lane experienced a substantial 37.5% increase, while the Europe-Asia, Within Asia, and Middle East-Asia routes saw growths of 20.3%, 21.0%, and 15.1%, respectively. Capacity in this region grew by 10.7% year-on-year. North American carriers had the weakest performance, with 9.5% year-on-year demand growth. The North America-Europe route saw a modest 6.7% increase, while the Asia-North America lane, the largest globally, grew by 12.8%, marking its highest annual increase in five months. Capacity in June rose by 6.0% year-on-year, the weakest amongst the regions.

Falling just behind the Asia-Pacific region, European carriers achieved 16.1% year-on-year demand growth, with intra-European air cargo up by 16.7%, continuing a streak of double-digit growth. The Europe-Middle East and Europe-Asia routes saw increases of 30.2% and 20.3%, respectively. Capacity increased by 9.1% year-on-year. Middle Eastern carriers saw 13.8% year-on-year demand growth, with the Middle East-Europe market performing exceptionally well at 30.2%, surpassing the 15.1% growth of the Middle East-Asia route. Capacity in June grew by 6.9% year-on-year. Latin American carriers reported 13.1% year-on-year demand growth, with capacity increasing by 15.5%. Notably, international demand growth in Latin America rose to 17.2%, the second-highest increase, up by 6.3 percentage points from the previous month. African airlines experienced 11.8% year-on-year demand growth. The Africa-Asia market posted a notable 37.5% increase, the strongest performance across all trade lanes. June capacity increased by 23.8% year-on-year.