Air Cargo Demand Soars in October, but Challenges Lie Ahead
October saw robust air cargo demand, with a 9.8% increase in traffic, but experts warn of potential challenges ahead, including geopolitical uncertainties and global trade disruptions.
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Air cargo demand remained strong in October, marking the fifteenth consecutive month of year-on-year growth. Cargo tonne kilometers (CTKs) increased by 9.8%, while available capacity rose by 5.9%. The cargo load factor also improved by 1.7 percentage points to 47.3%.
This growth was primarily fueled by an 8.5% rise in international belly hold space, complemented by a 5.6% increase in freighter capacity, bringing levels close to their 2021 peak. Air cargo yields saw significant gains, rising 10.6% compared to 2023 and 49% compared to 2019.
However, experts caution that the outlook for the next 12 months may be less optimistic. Potential geopolitical disruptions, such as the possibility of tariffs on major trade routes, could challenge the air cargo sector’s adaptability.
Market indicators show mixed signals. While global industrial production grew 1.6% and goods trade rose 2.4%, the Purchasing Managers Index (PMI) for new export orders remained below the 50-mark, highlighting uncertainty.
Regional performance varied, with Latin America leading demand growth at 18.5%, followed by Asia Pacific at 13.4%. Meanwhile, Africa reported the slowest growth at 1.6%. Inflation trends across major economies and concerns over China’s economic slowdown add to the cautious outlook.
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