Global Air Cargo Demand Falls By 4.8 Pct In March - IATA

KUALA LUMPUR, April 29 (Bernama) -- Global demand for international air cargo, measured in cargo tonne-kilometres (CTK), fell by 4.8 per cent in March this year compared with March 2025 levels (-5.5 per cent for international operations), said the International Air Transport Association (IATA).

Capacity, measured in available cargo tonne-kilometres (ACTK), decreased by 4.7 per cent versus March 2025 (-6.8 per cent for international operations).

IATA's director general Willie Walsh said the drop in air cargo demand was mostly due to severe disruptions at major Gulf hubs caused by war in West Asia. 

He said the timing of the usual post–Lunar New Year slowdown also added to the decline. 

Walsh also said the underlying demand trends, at this point, appear strong, and the recent World Trade Organisation and International Monetary Fund revisions to trade and gross domestic product projections continue to point to growth in 2026. 

"Importantly, air cargo networks are providing the flexibility needed to support global supply chains as they adjust to geopolitical, tariff and operational strains. 

"All eyes are on fuel supply and prices, which are expected to test the industry’s resilience in the coming months," he said in a statement issued in conjunction with the release of IATA's data for March 2026 global air cargo markets.

On regional performance, Walsh said Asia-Pacific airlines saw a 5.4 per cent year-on-year (y-o-y) growth in air cargo demand in March, while capacity increased by five per cent y-o-y.

Meanwhile, on trade lane growth, he said air cargo performance diverged across major trade lanes in March. 

Africa-Asia led growth, followed by Asia-Europe, with intra-Asia also remaining strong on regional trade flows. 

In contrast, Gulf-linked corridors were severely disrupted by the ongoing conflict in West Asia, he added.

Separately, IATA said that, in terms of March 2026 global passenger demand, total demand, measured in revenue passenger kilometres (RPK), was up 2.1 per cent versus March 2025.

Total capacity, measured in available seat kilometres (ASK), decreased by 1.7 per cent y-o-y, while the load factor was 83.6 per cent (up 3.1 percentage points (ppt) compared with March 2025).

International demand fell 0.6 per cent from March 2025, while capacity was down 6.2 per cent y-o-y, and the load factor was 84.1 per cent (up 4.7 ppt compared with March 2025). 

The overall decline in international traffic was led by a 60.8 per cent fall in traffic by carriers in West Asia, it said.

It further said domestic demand increased 6.5 per cent compared with March 2025. 

Capacity increased 5.6 per cent y-o-y, while the load factor was 83.0 per cent (up 0.7 ppt from March 2025).

“Demand for air travel continued to grow in March despite disruptions in West Asia. 

"The nearly 61 per cent decline in international traffic by carriers in West Asia did, however, restrain global growth to 2.1 per cent. 

"Outside of the Middle East, demand grew by eight per cent," said Walsh.

On the supply side, he said over the next few months there could be shortages in parts of the world with high dependence on supplies from the Gulf, especially Asia and Europe. 

He added that the extraordinarily high cost of jet fuel is increasingly being reflected in ticket prices. 

Walsh also said that it is important for regulators to be prepared to grant airlines some flexibility on slots, considering the extraordinary circumstances of airspace capacity restrictions and potential fuel rationing.

Meanwhile, Asia-Pacific airlines achieved an 11.5 per cent y-o-y increase in demand. 

Capacity increased 1.5 per cent y-o-y, and the load factor was 91.2 per cent (up 8.1 ppt compared with March 2025). 

Traffic in the region was boosted by the tail end of the Lunar New Year travel period, as well as international routes with the exception of routes to West Asia.

IATA represents over 360 airlines, accounting for some 85 per cent of global air traffic.

-- BERNAMA