Global Air Cargo Market Sees Record-Breaking Performance in First Half of 2024

The data indicates a continuation of strong annual growth, marking an exceptional first half-year with volumes surpassing those of 2023, 2022, and even the record-setting 2021.

The International Air Transport Association (IATA) has released its data for June 2024, revealing a robust performance in the global air cargo sector. The data indicates a continuation of strong annual growth, marking an exceptional first half-year with volumes surpassing those of 2023, 2022, and even the record-setting 2021.

In June 2024, global air cargo demand, measured in cargo tonne-kilometers (CTKs), rose by 14.1% compared to June 2023, with international operations showing a 15.6% increase. This growth represents the seventh consecutive month of double-digit year-on-year increases. Capacity, measured in available cargo tonne-kilometers (ACTKs), also saw a significant rise, up 8.8% compared to June 2023, with international capacity increasing by 10.8%.

For the first half of 2024, demand increased by 13.4% compared to H1 2023, by 4.3% compared to H1 2022, and by 0.02% compared to H1 2021.

IATA Director General Willie Walsh attributed the growth to several factors, including maritime shipping constraints and a booming e-commerce sector. "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," Walsh said. He noted that the sector has remained resilient despite ongoing political and economic challenges and the US customs crackdown on e-commerce deliveries from China.

The operating environment showed mixed signals in June. The global Manufacturing Purchasing Managers Index (PMI) indicated expansion at 52.3, while the new export orders PMI fell slightly to 49.3, suggesting a minor contraction. Global cross-border trade expanded by 0.1% month-on-month in May, while industrial production remained level.

Inflation varied across regions: in the EU and Japan, inflation rates held steady at 2.6% and 2.8% respectively, while the US saw a drop to 3.0%. China's inflation rate remained near zero at 0.3%, reflecting weak domestic demand amidst high unemployment and a crisis in the real estate sector.

Regional Performance Highlights:

• Asia-Pacific: Airlines in the Asia-Pacific region saw the strongest growth, with a 17.0% increase in air cargo demand. Notable growth was observed in the Africa-Asia trade lane (37.5%), Europe-Asia (20.3%), Within Asia (21.0%), and Middle East-Asia (15.1%). Capacity increased by 10.7% year-on-year.

• North America: North American carriers experienced a 9.5% rise in demand, the weakest among regions. Demand on the Asia-North America route grew by 12.8%, the largest increase in five months. Capacity grew by 6.0% year-on-year.

• Europe: European carriers saw a 16.1% increase in air cargo demand. Intra-European air cargo rose by 16.7%, continuing a trend of double-digit annual growth. Europe-Middle East and Europe-Asia routes saw demand increases of 30.2% and 20.3%, respectively. Capacity increased by 9.1%.

• Middle East: Middle Eastern carriers experienced a 13.8% increase in demand. The Middle East-Europe market grew by 30.2%, while Middle East-Asia grew by 15.1%. Capacity increased by 6.9%.

• Latin America: Latin American carriers saw a 13.1% rise in demand and a 15.5% increase in capacity. Notably, Latin America recorded the second-highest international demand growth at 17.2% in June.

• Africa: African airlines experienced an 11.8% rise in demand. The Africa-Asia market saw a remarkable 37.5% increase in demand, the strongest among all trade lanes. Capacity increased by 23.8% year-on-year.

Overall, the air cargo sector is on solid ground, with expectations of continued strong performance into the second half of 2024.