Global air cargo markets strengthened last year as e‑commerce demand and shifting trade flows helped sustain growth despite tariff pressures and policy uncertainty, according to the International Air Transport Association (IATA).

IATA reported that full‑year demand, measured in cargo tonne-kilometers (CTK), rose 3.4% compared to 2024 levels. International operations saw a stronger 4.2% increase.

Capacity, measured in available cargo tonne-kilometers (ACTK), expanded at a similar pace.

IATA also noted that full-year yields fell 1.5% year-on-year — the smallest decline in three years as a more normal supply-demand balance is achieved and the exceptionally strong yields of COVID and post-COVID continue to taper.

Despite competitive pressure capping air cargo’s pricing power, yields remain 37.2% above 2019 levels.

For December alone, global demand was 4.3% above December 2024 levels. International operations increased 5.5%. Global capacity was 4.5% above December 2024 levels. 

December's volume growth, was, however, slightly slower than the 5.5% year-on-year increase in November. 

In October, total air cargo demand was up 4.1% year-on-year — marking eight straight months of growth. In September, it expanded by 2.9% year-on-year. In August, it saw an increase of 4.1% and in July, total air cargo demand climbed 5.5% year-on-year. In June, global air cargo demand rose by 0.8% compared to June 2024. In May, it was up  2.2% compared to May 2024.

"Air cargo delivered a strong performance in 2025, with demand up 3.4% year-on-year. Global ecommerce strength drove volumes, even as trading relationships with the US faced rising tariffs, the removal of de minimis tariff exemptions, and continuing policy uncertainty," said Willie Walsh, director-general at IATA.

"Air cargo rose to the occasion. It adapted quickly to support global businesses and supply chains as they front-loaded product deliveries ahead of tariff impositions and adjusted to rising demand within Asia and between Asia and Europe as US-Asia trade stagnated."

Steadier growth expected for 2026

Looking ahead, Walsh said the industry should expect steadier, more historically typical growth in the year ahead, with trade dynamics continuing to shape demand.

"Growth in 2026 is expected to moderate slightly to 2.4%, in line with historical trends," Walsh said.

"We can expect that demand will continue to be shaped by trade and geopolitical developments. Whatever trading patterns emerge, we can be confident that reliance on air cargo to keep global supply chains running will remain, with carriers responding to the challenge by deploying capacity and designing their networks for optimum flexibility," he added.

Asia‑Pacific carriers posted the strongest growth in 2025, with demand up 8.4% and capacity up 7.4%. December volumes rose 9.4% with an 8.3% capacity increase.

North American airlines recorded the only annual decline, with demand down 1.3% and capacity down 1.1%. December saw further drops of 2.2% in demand and 2.6% in capacity.

European carriers reported 2.9% growth in annual demand and a 3.1% rise in capacity. December demand increased 4.9% and capacity 3.9%.

Middle Eastern airlines saw marginal annual demand growth of 0.3%, while capacity rose 4.5%. December demand increased 4.2% and capacity 10.6%.

Latin American and Caribbean carriers recorded 2.3% annual demand growth and a 4.5% capacity rise. December demand fell 4.1%, the weakest monthly result among regions, while capacity again grew 4.5%.

African airlines posted 6.0% annual demand growth and a 7.8% capacity increase. December demand rose 10.1%, the strongest monthly gain globally, with capacity up 9.8%.

Shift of air cargo flows to Asia-Europe

IATA noted that 2025 trade lane data shows a "clear shift" in global air cargo flows from Asia–North America to Asia–Europe driven by tariff pressures and the removal of the US de minimis exemption.

The within Asia, and the Middle East–Asia corridor also recorded strong growth.

In 2025, Europe–Asia and intra‑Asia trade lanes led global air cargo growth, with demand rising 10.3% and 10.0% respectively.

These lanes also gained market share, while Asia–North America—despite being the largest lane at 23.4%—saw a 0.8% decline in demand and lost 1.2 percentage points in share.

Other lanes such as Europe–North America and Middle East–Asia posted moderate growth, while Africa–Asia and Europe–Middle East recorded declines. The data reflects a shift toward Asia‑centric flows amid changing trade dynamics.