African airlines recently saw a 9.4% year-on-year increase in demand for air cargo, while capacity declined by 0.1% compared to last year.
The International Air Transport Association (IATA) further reported, “Air cargo demand worldwide grew 5.5% – a strong result. Most major trade lanes reported growth, with one significant exception: Asia–North America, where demand was down 1.0% year-on-year.”
“While much attention is rightly being focused on developments in markets connected to the US, it is important to keep a broad perspective on the global network. A fifth of air cargo travels on the Europe–Asia trade lane, which marked 29 months of consecutive expansion with 13.5% year-on-year growth,” said Willie Walsh, IATA’s Director General.
Several factors in the operating environment should be noted:
- The global goods trade grew by 3.1% year-on-year in June.
- The July jet fuel price was 9.1% lower year-on-year and has remained below 2024 levels so far this year, easing airlines’ operating costs. However, it was 4.3% higher than in June.
- Global manufacturing contracted in July with the PMI falling to 49.66, the second dip below the 50-mark growth threshold since January. New export orders also remained negative at 48.2 for the fourth month, reflecting waning confidence amid US trade policy uncertainty.