The International Air Transport Association (IATA) reported that global air cargo markets expanded for the 16th consecutive month in November, ensuring a profitable end to 2024 for the air freight industry.

The trade association of the world's airlines also said this strong performance is "very likely" to extend into 2025, although warning of some risks on the horizon including inflation, geopolitical uncertainties and trade tensions.

For November, total demand, measured in cargo tonne-kilometers (CTK), rose by 8.2% compared to November 2023 levels (9.5% for international operations) for a 16th consecutive month of growth. 

Capacity, measured in available cargo tonne-kilometers (ACTK), also increased by 4.6% compared to November 2023 (6.5% for international operations). 

[Source: IATA]

"It was a good November for air cargo with 8.2% demand growth nearly doubling the 4.6% growth in cargo capacity," said Willie Walsh, IATA's director general.

He noted that fuel costs tracked at 22% below previous-year levels and tight market conditions supported yield growth at 7.8%.

"All things considered we are looking to close out 2024 air cargo performance on a profitable note," the IATA chief added.

"While this strong performance is very likely to extend into 2025, there are some downside risks that must be carefully watched. These include inflation, geopolitical uncertainties and trade tensions," Walsh said.

All regions record growth except Africa

For November, IATA said in its report that Asia-Pacific airlines saw 13.2% year-on-year demand growth for air cargo, the strongest growth among the regions, while capacity was also up by 9.4% year-on-year (YoY). 

North American carriers saw 6.9% year-on-year demand growth, with capacity growing by 2.2% YoY.

European carriers recorded a 5.6% demand growth for air cargo in November, and their capacity also increased by 4.3% compared to the same period in the year prior.

Middle Eastern carriers saw 3.6% annual demand growth, while capacity decreased by 0.6% year-on-year. Latin American carriers recorded an 11.6% year-on-year demand growth for air cargo in November and capacity growth of 6.4% year-on-year.

Meanwhile, African airlines saw a 0.7% year-on-year decrease in demand for air cargo in November, the slowest among regions. Capacity increased by 0.4% year-on-year.

[Source: IATA]

In terms of trade lane growth, IATA noted that international routes experienced "exceptional traffic levels" for the 16th consecutive month with a 9.5% year-on-year increase in November with airlines benefiting from rising e-commerce demand in the US and Europe amid ongoing capacity limits in ocean shipping.