Air Cargo Growth Accelerates as Freighters Take a Larger Share

Demand, measured in cargo tonne-kilometres, increased by 3.9% compared with July 2025, while international operations recorded stronger growth of 4.7%.

Global air cargo demand strengthened in July 2026 as expanding trade, new export orders and steady manufacturing activity kept goods moving across major international markets, according to data released by the International Air Transport Association (IATA).

Demand, measured in cargo tonne-kilometres, increased by 3.9% compared with July 2025, while international operations recorded stronger growth of 4.7%. Available cargo capacity rose by 1.7% worldwide and 1.8% on international routes, allowing demand to grow faster than the space offered by airlines. The global cargo load factor reached 46%, one percentage point higher than a year earlier.

Freighters Capture More Cargo as Belly Capacity Declines

Dedicated freighter aircraft gained market share during July as cargo carried in passenger aircraft belly holds declined. The shift may reflect stronger demand for large, specialised or time-sensitive shipments that are easier to accommodate on freighters, which also give airlines greater freedom to adjust schedules and routes around changing trade conditions.

IATA Senior Vice President for Sustainability and Chief Economist Marie Owens Thomsen said every region achieved year-on-year cargo growth, though Asia-Pacific, Europe and North America generated more than 90% of the global increase. The wider economic environment remained supportive, with world trade expanding by 7.5% and the New Export Orders Index reaching 50, a level that signals stable activity.

The Global Manufacturing Output Purchasing Managers' Index slipped by 0.3 points to 52.7, remaining above the threshold associated with growth. Airlines still face a sharp increase in operating expenses, since jet fuel prices climbed by 12.2% from June and stood 56.9% above their July 2025 level.

North America and Europe Lead Regional Performance

North American airlines posted the strongest regional demand growth at 4.8%, even as available capacity fell by 1.5%. This combination lifted the region's cargo load factor by 2.5 percentage points, showing that carriers moved more freight with less available space.

European airlines recorded a 4.4% increase in demand against capacity growth of 1.3%, raising their load factor to 51.1%, the highest among all regions. Asia-Pacific carriers delivered a 4.1% demand increase while expanding capacity by 3%, supported by the region's central role in manufacturing and international supply chains.

Latin American and Caribbean airlines also achieved 4.1% demand growth, though capacity expanded more quickly at 7%, placing pressure on aircraft utilisation. Middle Eastern carriers saw demand rise by 1.7% as capacity increased by 4%, while African airlines recorded the weakest regional growth at 1.1% alongside a 4.1% capacity expansion.

Major Trade Routes Move in Different Directions

The Asia–North America corridor delivered the strongest trade-lane performance, with cargo traffic rising by 9.2% and completing six consecutive months of growth. This route accounts for 23.5% of global industry cargo traffic, making its strong result especially important for the wider market.

Cargo volumes within Asia increased by 6.1%, marking 33 months of uninterrupted growth, while Europe-Asia traffic rose by 3.1% for its forty-first consecutive month of expansion. The Europe–North America market grew by 2.1%, extending its positive run to three months.

Routes linked to Gulf hubs remained under pressure from conflict and operational disruption in the Middle East. Europe–Middle East cargo traffic fell by 16.1%, while the Middle East–Asia corridor contracted by 14.1%, leaving both routes with five consecutive months of decline.

IATA expects the overall cargo outlook to remain broadly positive as global trade, manufacturing and export orders continue to support shipment volumes. Rising fuel expenses, geopolitical tensions and uncertainty surrounding tariffs could still reshape routes, costs and customer demand during the closing months of 2026.