The air cargo sector continues its impressive momentum, achieving 15 consecutive months of growth as of October and positioning itself to close 2024 as a landmark year.

Air cargo is vital for the airline sector in particular and global economy in general, playing a multifaceted and indispensable role.

Air cargo serves as a critical revenue stream, especially during periods of reduced passenger travel, such as during pandemics or seasonal downturns.

Freighters transport goods swiftly across continents, enabling businesses to access international markets and sustain global supply chains.

Airlines around the world optimise fleet utilisation by balancing passenger and cargo loads, ensuring profitability even on less populated routes.

While 2024 is shaping up to be a banner year for air cargo, industry captains say 2025 must be looked with some caution.

The air cargo industry approaches the new year with measured caution, as proposed US tariffs have the potential to disrupt global supply chains and erode consumer confidence.

The incoming Trump Administration’s announced intention to impose significant tariffs on United States’ top trading partners—Canada, China and Mexico—has the potential to upend global supply chains and undermine consumer confidence, according to the International Air Transport Association (IATA).

IATA's data for October global air cargo markets, show continuing strong annual growth in demand.

Total demand, measured in cargo tonne-kilometres (CTKs), rose by 9.8% compared to October 2023 levels (10.3% for international operations) for a 15th consecutive month of growth.

Capacity, measured in available cargo tonne-kilometres (ACTKs), increased by 5.9% compared to October 2023 (7.2% for international operations). This was largely driven by an 8.5% increase in international belly capacity.

Dedicated freighter capacity increased by 5.6%, the seventh consecutive month of growth with volumes nearing 2021 peak levels.

IATA’s Director General Willie Walsh said: “Air cargo markets continued their strong performance in October, with demand rising 9.8% year-on-year and capacity up 5.9%. Global air cargo yields (including surcharges) continue to rise, up 10.6% on 2023 and 49% on 2019 levels. While 2024 is shaping up to be a banner year for air cargo, we must look to 2025 with some caution.

“The incoming Trump Administration’s announced intention to impose significant tariffs on its top trading partners — Canada, China and Mexico — has the potential to upend global supply chains and undermine consumer confidence. The air cargo industry’s proven adaptability to rapidly evolving geopolitical and economic situations is likely to be tested as the Trump agenda unfolds."

According to IATA, several factors in the operating environment should be noted.

Year-on-year, industrial production rose 1.6% in September while global goods trade increased 2.4% for a sixth consecutive month of growth. The increase in trade is partly due to businesses stockpiling inventory ahead of potential disruptions, like the US port strike.

Global manufacturing activity rebounded in October. The Purchasing Managers Index (PMI) for global manufacturing output was above the 50-mark, indicating growth. However, the PMI for new export orders, remained below the 50-mark, suggesting ongoing uncertainty and weakness in global trade.

US headline inflation, based on the annual Consumer Price Index (CPI), rose by 0.17 percentage points to 2.58% in October, ending a six-month decline. In the same month, the inflation rate in the EU increased by 0.24 percentage points to 2.33%.

China’s consumer inflation fell to 0.29% in October, sparking concerns of an economic slowdown.

With the rise of online shopping, air cargo ensures the rapid delivery of goods, meeting consumer expectations and driving digital economy growth.

It plays a pivotal role in the delivery of high-value, time-sensitive items, including medical supplies, vaccines, and perishables, often in life-saving situations.

Air cargo links remote regions to global trade networks, fostering economic inclusivity and supporting local industries.

Undoubtedly, air cargo is not just a segment of the airline industry; it is a cornerstone of global connectivity, enabling economic growth, innovation, and resilience