Global air cargo demand continued to expand in January, but the pace has slowed from the double-digit growth seen in 2024.

The International Air Transport Association (IATA) reported that total demand, measured in cargo tonne-kilometres (CTK), rose by 3.2% compared to January 2024 levels (3.6% for international operations), marking the 18th consecutive month of growth. 

However, January's performance was lower month over month. In December 2024, global air cargo market demand was up by 11.3% compared to 2023.

Capacity, measured in available cargo tonne-kilometers (ACTK), increased by 6.8% compared to January 2024 (7.3% for international operations). 

"January marked 18 consecutive months of growth for air cargo, but the month's 3.2% year-on-year growth is a moderation from double-digit peaks in 2024," said Willie Walsh, IATA's Director General.

He added that similarly, yields, while still above January 2024 levels, saw a 9.9% decline from December as cargo load factors also declined by an average of 1.5 percentage points.

"While external factors such as trade growth, declining fuel costs, and expanding e-commerce remain positive for air cargo, it is important to closely watch the evolution of market conditions at this time. In particular, the wild card is the potential for tariff-driven trade policies from the US Trump Administration. Fortunately, the air cargo industry is well-practiced at dealing with shifts in the operating environment," the IATA chief added.

Most regions record demand, capacity growth in January

Asia-Pacific airlines saw 7.5% year-on-year demand growth for air cargo in January, as capacity also increased by 10.9%.

North American carriers recorded a 5.3% annual demand growth, and capacity expanded by 7.5% year-on-year.

European carriers saw 1.3% demand growth for air cargo in January compared to the same period in 2024. Capacity was also up 3.5% during the period.

Middle Eastern carriers, on the other hand, saw an 8.4% year-on-year demand drop for air cargo in January, the slowest among the region, as capacity also decreased by 1.2% year-on-year.

In January, Latin American carriers experienced an 11.2% year-on-year rise in air cargo demand, marking the highest growth among regions. Additionally, capacity rose by 10.6% compared to the previous year.

African airlines saw a 3.4% year-on-year decline in air cargo demand in January, while capacity rose by 5.4% year-on-year.  

In terms of trade lane growth, IATA reported that most international routes recorded growth in the first month of 2025.

"Airlines are benefiting from rising e-commerce demand in the US and Europe amid ongoing capacity limits in ocean shipping," IATA said.