Global air cargo demand softened in March as the industry faced a more challenging operating environment marked by rising fuel costs and tightening capacity, according to the latest data from the International Air Transport Association (IATA).

Total demand for March, measured in cargo tonne-kilometers (CTK), fell by 4.8% compared to March 2025 levels. It was down 5.5% for international operations.

In February, total demand was up by 11.2% compared to February 2025 levels, and also increased 11.6% for international operations.

In January, total demand was up 5.6% year-on-year, while international CTKs grew 7.2%. Capacity rose 3.6% overall and 5.7% for international operations.

Capacity, measured in available cargo tonne-kilometers (ACTK), decreased by 4.7% compared to March 2025, and also declined 6.8% for international operations. 

(Source: IATA)

"Air cargo demand fell 4.8% in March compared to the previous year. This was mostly due to severe disruptions at major Gulf hubs due to war in the Middle East," said Willie Walsh, IATA's Director General, noting that the timing of the usual post–Lunar New Year slowdown also added to the decline.

"The underlying demand trends, at this point, appear strong and the recent World Trade Organization and International Monetary Fund revisions to trade and GDP projections continue to see growth in 2026," Walsh added.

"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 price, which are expected to test the industry's resilience in the coming months," the IATA chief said.

Rising fuel costs weighed heavily on performance in March, with jet fuel prices surging alongside sharp increases in crude oil and refining margins. IATA said these cost pressures added another layer of strain for carriers already navigating a softer demand environment.

Jet fuel prices rose sharply in March, up 106.6% year-on-year, alongside a 43.1% increase in crude oil prices and a 320% surge in refining margins.

March regional performance

African airlines posted the strongest growth in March, with air cargo demand up 7.0% year‑on‑year even as capacity fell 4.6%. Asia‑Pacific carriers followed with a 5.4% increase in demand and a 5.0% rise in capacity.

Latin American and Caribbean airlines saw demand grow 1.8%, supported by a 5.1% increase in capacity. European carriers recorded a 2.2% uptick in demand alongside a 4.2% expansion in capacity.

North American airlines experienced a 1.2% decline in demand and a 1.1% drop in capacity. The weakest performance came from Middle Eastern carriers, where demand plunged 54.3% and capacity contracted 52.4% amid ongoing geopolitical disruptions.

Trade lane growth

Air cargo performance diverged across major trade lanes in March.

IATA said Africa-Asia led growth followed by Asia–Europe, with intra-Asia also holding strong on regional trade.

In contrast, Gulf-linked corridors were severely disrupted by the ongoing conflict in the Middle East.