Niël Terbalnché
The global air cargo market experienced an unprecedented surge in 2024, surpassing previous records and reinforcing its critical role in global trade.
The International Air Transport Association (IATA) released its full-year report, highlighting an 11.3% year-on-year increase in demand, with international operations rising by 12.2%.
According to IATA, the growth was attributed to a combination of robust e-commerce demand and ongoing disruptions in ocean shipping, which forced businesses to turn to air freight as a reliable alternative.
Despite a slight decline in average yields compared to 2023, overall earnings remained 39% higher than pre-pandemic levels in 2019.
IATA Director General Willie Walsh described 2024 as a year of “profitable growth” for the air cargo sector, noting that strong demand coupled with supply constraints on key trade lanes helped sustain high yields.
Among the various regions, Asia-Pacific airlines recorded the strongest growth, with a 14.5% increase in demand, closely followed by Middle Eastern and Latin American carriers, which saw gains of 13% and 12.6%, respectively.
European carriers recorded 11.2% growth, while North America, despite its vast market, reported a relatively modest increase of 6.6%, the lowest among all regions.
African airlines posted an 8.5% year-on-year rise in demand but faced challenges towards the end of the year.
In December, air cargo demand in Africa declined by 0.9%, making it the only region to record a negative year-end performance.
This decline coincided with a 1.8% increase in capacity, suggesting that supply outpaced demand in the final month of 2024.
Trade lane growth remained strong throughout the year, with international routes enjoying a 7% year-on-year increase in December alone.
The Asia-Europe corridor led the charge with a 10.3% rise in traffic, extending a 22-month growth streak.
Other key routes, including Asia-North America and Middle East-Asia, maintained steady upward momentum, reinforcing air cargo’s integral role in sustaining global trade amid ongoing logistical challenges.
The air cargo sector benefited from a 3.6% annual increase in global trade in goods. However, underlying economic conditions presented mixed signals.
Both the global manufacturing output and new export orders indices fell below the 50-point threshold, indicating a contraction in production and trade volumes.
Additionally, inflationary pressures persisted in major economies, with the U.S. and European Union reporting slight increases in inflation rates by December 2024, while China faced deflationary concerns.
Looking ahead to 2025, IATA projects that air cargo demand will moderate to a 5.8% growth rate, aligning with historical performance trends.
While lower oil prices and stable trade growth are expected to support continued expansion, geopolitical uncertainties, particularly around tariffs and trade policies, could pose risks to the industry.
Despite the notable growth in African air cargo, the continent accounted for only 2.0% of the global market share in 2024.
Africa’s trade lane with Asia recorded a 4.0% decline, contrasting sharply with the double-digit growth witnessed on other major international routes.
This underperformance reiterated the challenges faced by African carriers in securing a more competitive position within global supply chains.
According to the IATA report, Africa’s slower growth in key trade routes and its marginal share in the global market underscore the need for improved infrastructure and stronger logistics networks to enhance competitiveness.
IATA stated that it is cautiously optimistic about further increases during 2025.
The report stated that airlines will need to navigate shifting economic landscapes while leveraging technological advancements and expanding trade opportunities to maintain momentum in the ever-evolving global air cargo market.
