Global demand was 6.1% higher than in December 2023
The International Air Transport Association (IATA) has released data on the full-year 2024 and December 2024 global air cargo market performance, revealing an 11.3% increase in demand compared to 2023. Full-year demand in 2024 also surpassed the record volumes set in 2021.
Cargo capacity for 2024, measured in available cargo tonne-kilometers (ACTK), increased by 7.4% compared to 2023. Full-year yields averaged 1.6% lower than in 2023 but remained 39% higher than in 2019.
December 2024 closed the year with continued strong performance. Global demand was 6.1% higher than in December 2023 (7.0% for international operations), while global capacity increased 3.7% year-on-year (5.2% for international operations). Cargo yields in December were 6.6% higher than in December 2023 and 53.4% higher than in December 2019.
Industry Outlook and Challenges
“Ir cargo was the standout performer in 2024, with airlines moving more cargo than ever before. Importantly, it was a year of profitable growth. Demand, up 11.3% year-on-year, was driven by strong e-commerce activity and ocean shipping restrictions. Additionally, airspace limitations on key long-haul routes to Asia helped sustain exceptionally high yields. While average yields have softened from their 2021-2022 peaks, they still averaged 39% higher than in 2019,” said Willie Walsh, IATA’s Director General.
Looking ahead to 2025, IATA forecasts moderated growth of 5.8%, in line with historical trends.
“Economic fundamentals indicate another strong year for air cargo, with oil prices trending downward and global trade continuing to grow. However, the industry must navigate geopolitical shifts. The first week of the Trump administration demonstrated a strong inclination toward using tariffs as a policy tool, which could pose a double threat to air cargo—increasing inflation while dampening trade,” Walsh added.
Market Environment in 2024
The operating environment in 2024 was favorable. However, in December, both the Manufacturing Output Purchasing Managers Index (PMI) at 49.2 and the New Export Orders PMI at 48.2 remained below the critical 50-mark threshold, indicating a decline in global manufacturing production and exports.
In terms of inflation:
U.S. headline inflation, based on the annual Consumer Price Index (CPI), rose by 0.2 percentage points to 2.9% in December.
EU inflation increased by 0.2 percentage points to 2.7% in December.
China’s consumer inflation declined by 0.1 percentage points to 0.1%, marking the fourth consecutive year-on-year decline, raising concerns about an economic slowdown.