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Air cargo has consistently proven itself as a crucial stabiliser for the global economy; its inherent agility successfully blunting the impact of the 2025 tariff cycle and mitigating the severe disruptions caused by the Covid-19 pandemic.The air cargo segment is a vital cornerstone of global commerce, acting as a crucial enabler of international trade, particularly for time-sensitive and high-value goods. While accounting for a mere 1% of world trade volume, it represents an estimated 35% of its total value, moving goods worth more than $8tn annually.Global air cargo demand, measured in cargo tonne-kilometres (CTK), rose 3.3% year-on-year (y-o-y) as of October, according to the International Air Transport Association (IATA).Activity was surprisingly strong as importers front-loaded shipments ahead of tariff changes. Demand has remained firm since, though growth is expected to moderate later in the year. For 2025, IATA now projects 3.1% y-o-y growth, an upward revision from 0.7% in our June forecast.Cargo traffic in Asia-Pacific is expected to grow by 8.5% y-o-y this year. Year-to-date or YTD (January-October) data shows broad-based strength across nearly all routes, led by the Europe corridor, which expanded by 10.6%.Chinese exporters diverted shipments affected by US tariffs to other trading partners and adopted strategies such as adding intermediate stops or shifting production to countries outside the tariff lists.While this substitution effect materialised quickly, it might not be sustainable if future tariffs target rerouting practices, the global trade body of airlines noted.The low pricing that supported inventory reductions might not persist, reinforcing our more cautious outlook for 2026.Europe is forecast to grow by 2.5% in 2025. Among Europe’s international routes, only those with Asia (+10.6%) and North America (+7.1%) expanded, as per October YTD data.Africa and Latin America are expected to grow by 3.0% and 4.0%, respectively.In contrast, the Middle East and North America are likely to contract by 1.5% and 1.2%, driven by tariffs in North America and geopolitical tensions combined with easing ocean freight disruptions in the Red Sea for the Middle East.Global air freight yields averaged $2.4/kg YTD through October, about 30% above 2019 levels. Yields were slightly stronger in the first quarter, growing by approximately 4% y-o-y, supported by front-loading and a high base from early 2024. However, momentum weakened from the second quarter onward, with average y-o-y declines of 2.6%, reaching a low of -5.4% in September, but improving again in October to -4.0% y-o-y.In contrast, sea freight rates fell sharply in both monthly and yearly terms, making ocean shipping more attractive and reducing air cargo’s relative price competitiveness.Demand growth by cargo hold type shows a clear divergence: dedicated freighters’ CTK rose by mere 1.4%, reflecting limited expansion on the freighter side due to persistent supply chain bottlenecks, while belly cargo surged by 7.8% YTD through October.Aircraft delivery delays continue to hamper fleet expansion, also on the cargo side.Delays in wide-body freighter deliveries, with the Boeing 777X-F pushed to 2028 and Airbus A350F to late 2027, are leading operators to stretch existing fleets and rely on passenger aircraft conversions.However, the pool of suitable passenger aircraft is shrinking due to limited availability of new passenger aircraft. This sustained supply shortfall is driving up air freight rates, particularly for dedicated freighters, and is likely to take years to unwind. Medium wide-bodies, notably the Airbus A330 and Boeing 767, dominate the conversion market as immediate, though costlier, substitutes for delayed next-generation freighters.The global cargo load factor reached 45.3% in October 2025 YTD, broadly unchanged from 2024. While demand growth is expected to slow in 2026, steady air cargo demand amid global uncertainties and persistent capacity constraints should keep load factors broadly flat.For 2026, IATA expects air cargo demand to continue to expand, albeit at a slower pace than in 2025, in line with softening global trade.The slowdown is unlikely to be as pronounced as the general trade deceleration, as air cargo continues to benefit from rising demand for high-value, time-sensitive goods, particularly driven by e-commerce and semiconductors.Persistent global uncertainties around tariffs and supply chain disruptions will reinforce air transport’s role as the most reliable mode of delivery.Overall, IATA forecasts 2.6% growth for the industry in 2026, led by Asia-Pacific at 6%. Other regions should grow around 2%, while the Middle East will stagnate, and North America will edge down by 0.5%.Undoubtedly, air cargo industry's ability to provide speed, security, and flexibility makes it an indispensable component of the modern, interconnected global economy, enabling businesses to meet demanding customer expectations and adapt to volatile market conditions.Pratap John is Business Editor at Gulf Times. X handle: @PratapJohn. 

The Minister of Finance His Excellency Ali bin Ahmed al-Kuwari emphasised that Qatar’s LNG expansion strategy is helping to buffer against falling oil prices, ensuring stability in revenues and long-term resilience.He was speaking at the panel discussion titled ‘Global Trade Tensions: Economic Impact and Policy Responses in Mena’ held Saturday on the sidelines of the Doha Forum 2025.HE al-Kuwari noted that diversification has been central to Qatar’s 2030 national vision strategy since 2008, with growth increasingly coming from non-oil sectors, such as technology, manufacturing, logistics, and tourism. “Most of the growth in the economy is coming from the non-oil sector. For example, the first six months, GDP this year was 5.3% in growth from the non-oil GDP,” he said.HE al-Kuwari highlighted Qatar’s fiscal discipline, pointing to a 20-year framework that guides debt reduction, investment allocation, and reserve building. This approach has already reduced net debt from 58% in 2021 to 45%, earning Qatar an AA rating from all three major agencies — the highest in the region, he pointed out.The minister also stressed Qatar’s readiness to face global shocks, including recessions, thanks to fiscal buffers and disciplined policy. “Of course...Qatar has been very resilient. We’ve been resilient to many shocks,” emphasised HE al-Kuwari, who assured that the economy is ready in the event of a recession. 

At least three people were killed, and 11 others were injured when a UPS cargo plane crashed near Louisville International Airport in Kentucky. The US Federal Aviation Administration explained that the aircraft, an MD-11 model, crashed after taking off from Louisville en route to Honolulu, noting that the aircraft was carrying three crew members.Emergency services in Louisville reported that they issued an order to stay indoors within a five-mile radius of the airport, due to fires breaking out in industrial buildings adjacent to the crash site and the closure of several roads, while local reports indicated the formation of a large fire and the rising of thick columns of smoke.The airspace at Louisville airport was temporarily closed following the incident, amid expectations of impacts on cargo operations, given that the airport houses UPS's Worldport Center, the company's largest parcel processing facility.

Iran has demanded a $170 million fine from the owner of a cargo ship that it seized in Gulf waters last year and accused of having ties to Israel, a judicial official said Tuesday.The Revolutionary Guards, the ideological arm of Iran's military, intercepted the MSC Aries in April of 2024 and detained its 25 international crew members.At the time, the official IRNA news agency said the Portuguese-flagged vessel was "managed by Zodiac, which belongs to the Zionist capitalist Eyal Ofer".On Tuesday, Iranian judiciary spokesperson Asghar Jahangir said charges had been filed and the case was before the courts, though no date had been set for a trial."A fine of $170 million has been demanded against its owner, of Israeli origin, accused of financing terrorism," Jahangir said.At the time, the United States denounced the seizure of the ship as an act of piracy and called for its crew to be released.Israel's foreign minister called on the European Union to designate the Revolutionary Guards a "terrorist organisation" in response.At least some of the crew were later freed.Jahangir said the ship, excluding its cargo, was valued at $170 million and claimed that Ofer -- an Israeli billionaire and shipping magnate -- was an "influential figure" within the Israeli government.The ship's seizure came months into the war in Gaza, where Israel was fighting Iran-backed Palestinian militants Hamas, whose October 7, 2023 attack on southern Israel sparked the conflict.

Japan successfully launched its new unmanned cargo spacecraft on Sunday aboard an H3 launch vehicle from a space center on a southwestern island, carrying supplies to the International Space Station (ISS).The Japan Aerospace Exploration Agency (JAXA) said the HTV-X1 spacecraft lifted off atop the No. 7 H3 rocket from the Tanegashima Space Center in southern Japan.JAXA confirmed that the spacecraft successfully separated from the rocket and entered its planned orbit. If all goes as scheduled, it is expected to arrive at the ISS within a few days to deliver supplies. Japanese astronaut Kimiya Yui, currently aboard the ISS, is expected to capture the craft with a robotic arm early Thursday.The HTV-X spacecraft has a maximum payload capacity of six tons — 1.5 times greater than its predecessor, the Kounotori — which delivered supplies to the ISS nine times between 2009 and 2020, according to JAXA.

Qatar shipped 25 more LNG cargoes in the first nine months of this year compared to 9M 2024, according to Gas Export Countries Forum (GECF).In its latest monthly report, GECF noted that the United States shipped 181 more cargoes during the period compared to 9M 2024.In September, some 507 LNG cargoes were exported globally, which were six fewer shipments than one year ago, as well as 30 fewer shipments than in the previous month.In the first three quarters of 2025, total cargo exports reached 4,771, which was 54 more than during the same period in 2024, GECF notedDuring these months, 46% of LNG cargoes exported originated from GECF countries, led by Qatar, Malaysia and Russia, the report said.In September, global LNG exports rose by 4.2% y-o-y (1.40mn tonnes) to reach 34.91mn tonnes, marking the slowest pace of growth since June this year.The increase was primarily driven by non-GECF countries, and to a lesser extent from LNG re-exports, which offset weaker LNG exports from GECF Member Countries.Between January and September, cumulative global LNG exports grew by 4.7% y-o-y (14.31mn tonnes) to reach 319.46mn tonnes.This growth was supported by stronger LNG exports from non-GECF countries and a modest uptick in LNG exports from GECF Member Countries and re-export activity.The share of LNG exports from non-GECF countries continued to rise, increasing from 50.6% in September 2024 to 55.4% in September this year.Similarly, the share of LNG re-exports moved slightly higher from 0.5% to 0.6%.In contrast, the share of GECF Member Countries declined over the same period, falling from 48.9% to 44%.“The US, Qatar, and Australia remained the top three LNG exporters,” GECF noted.In September, LNG exports from GECF Member and Observer Countries fell by 6.3% (1.03mn tonnes) y-o-y to 15.17mn tonnes reversing four consecutive months of annual growth.The decline was most pronounced in Algeria, Nigeria, Peru and Russia, while Qatar recorded a sharp increase in its LNG exports.In Algeria, Nigeria, and Peru, reduced feedgas availability contributed to the decline in LNG exports.In Algeria, upstream maintenance activities curtailed feedgas supply, resulting in lower LNG output.In Nigeria, pipeline maintenance is believed to have constrained feedgas flows to liquefaction facilities.Meanwhile, Russia’s lower LNG exports originated from the Portovaya, Vysotsk, and Yamal LNG plants.Conversely, Qatar recorded higher LNG exports, supported by stronger output from the Ras Laffan LNG facility, which operated above its nameplate capacity.From January to September, aggregated GECF LNG exports moved marginally higher by 0.1% (0.20mn tonnes) y-o-y to reach 143.79mn tonnes, GECF noted.

Qatar Airways and Kenya Airways have announced the launch of codeshare flights to some 19 destinations, with more set to be added in the near future. Kenya Airways customers can book codeshare flights between Nairobi and Doha, as well as to 10 destinations connecting through Hamad International Airport.Similarly, Qatar Airways customers now have access to eight destinations in Kenya Airways’ network, connecting through three daily flights between Doha and Nairobi. Passengers will be able to travel on these codeshare flights from October 26. Flights will be available for sale starting tomorrow, October 21. Qatar Airways Chief Commercial Officer, Thierry Antinori, said: “We are pleased with the significant progress made in just a few months since the partnership initiated with Kenya Airways, and this enhancement is a testament of the collaborative efforts, which further strengthens our presence in Kenya and the African continent. “The recent addition of Qatar Airways’ third daily flight to Nairobi also serves as another cornerstone of this partnership that is driven by strong demand from passengers seeking reliable and seamless connectivity.”Kenya Airways Chief Commercial and Customer Officer, Julius Thairu, said: "We are excited to embark on this new chapter of our partnership with Qatar Airways. This partnership will significantly enhance connectivity especially across Africa, the Middle East, and Asia, expanding our flight offerings, and opening up a world of new destinations for our customers to explore. Together with Qatar Airways, we are dedicated to providing our customers with easy access to a variety of destinations, paired with better connectivity and a seamless travel experience."Today’s announcement enables Qatar Airways to continue expanding its footprint within the African continent, providing passengers from more than 170 destinations across the globe with easier access to key leisure and business destinations served by Kenya Airways, including Lilongwe, Livingstone, Juba, Nampula, Ndola, and Victoria Falls.Similarly, Kenya Airways passengers will now be able to connect to multiple destinations in 10 countries across Asia and the Middle East through Hamad International Airport. These destinations include Bahrain, Colombo, Islamabad, Karachi, Malé, Singapore, and Tokyo Narita.Additionally, Qatar Airways Privilege Club members will earn Avios on the codeshare flights operated by Kenya Airways. The two airlines will continue to collaborate on codeshares, airport operations, lounges, sustainability and procurement. Other future phases and areas of collaboration will include network development, cargo, aircraft maintenance, repair, and overhaul.Kenya Airways codeshares on Qatar Airways routesBahrain, Colombo (Sri Lanka), Doha, Dhaka (Bangladesh), Islamabad and Karachi (Pakistan), Kuala Lumpur (Malaysia), Malé (Maldives), Muscat (Oman), Singapore, and Tokyo Narita (Japan).Qatar Airways codeshares on Kenya Airways routesAbidjan (Côte d'Ivoire), Accra (Ghana), Addis Ababa (Ethiopia), Lilongwe (Malawi), Livingstone (Zambia), Juba (South Sudan), Nampula (Mozambique), and Victoria Falls (Zimbabwe).

Qatar Free Zones Authority (QFZ) and Bin Yousef Cargo have announced the official opening of a new warehouse facility at Ras Bufontas Free Zone.The facility underscores the shared commitment of both entities to strengthening Qatar’s position as a pivotal hub for regional and global supply chain and logistics.Marking a significant milestone in Bin Yousef Cargo’s expansion strategy, the facility has already completed its first shipment. Strategically located near the award-winning Hamad International Airport and Hamad Port, it offers seamless connectivity to major transportation routes, enabling Bin Yousef Cargo to deliver efficient, integrated logistics and distribution solutions to its clients.In addition to its prime location, the facility provides a comprehensive suite of value-added services, including custom packaging, inventory management, and order fulfilment, tailored to meet the needs of businesses across diverse industries in Qatar and the wider region.Equipped with state-of-the-art amenities, the facility ensures optimal operational efficiency and top-tier service standards, reinforcing Bin Yousef Cargo’s position as a trusted logistics partner committed to excellence and innovation.Operating within Qatar’s free zones enables Bin Yousef Cargo to deliver cost-efficient solutions through competitive pricing and flexible terms, supporting clients in optimising their logistics costs.Customers also stand to benefit from streamlined customs procedures and duty exemptions on transshipments, simplifying trade operations and providing regulatory advantages that enhance ease of doing business in the region.Abdulla Hamad al-Binali, acting chief operating officer at QFZ, said: “The opening of Bin Yousef Cargo’s state-of-the-art facility in Qatar’s free zones is a strategic step that reflects QFZ’s commitment to enhancing the competitiveness of the logistics sector and expanding our network of partnerships with top logistics solutions providers.“We are committed to empowering businesses with competitive advantages, world-class infrastructure, and integrated logistical connectivity that provides an ideal environment for growth and expansion. The addition of Bin Yousef Cargo’s advanced facility to our ecosystem reinforces our role as a catalyst for trade excellence in the region.”Jiju Haneef, director, Cargo Operations at Bin Yousef Cargo, said: “The launch of our Qatar’s free zones warehouse and the successful execution of our maiden shipment represent a strategic leap forward in our mission to provide world-class logistics solutions.“This facility strengthens our ability to offer enhanced services, cost efficiencies, and regulatory benefits to our clients. We are proud to contribute to Qatar’s vision of becoming a global logistics hub and look forward to supporting businesses with unmatched agility and reliability.”QFZ remains committed to accelerating Qatar’s logistics growth and enabling strategic investments that align with Qatar National Vision 2030 and the Third National Development Strategy (NDS3), positioning the country as a hub for sustainable, innovation-led industrial activity.

Beyond the TarmacAn improvement in both passenger and cargo volumes in the global air transport industry during July suggests renewed economic momentum, stronger global trade, and growing travel demand clear signs of resilience and confidence in the global air transport sector.Data released by the International Air Transport Association (IATA) revealed global passenger demand measured in revenue passenger kilometres (RPKs), was up 4% in July compared to the same period in 2024.Similarly, total demand in global air cargo, measured in cargo tonne-kilometres (CTKs), rose by 5.5% in July compared to July 2024 levels.Industry analysts see increased passenger and cargo activity in July reflecting restored international mobility, expansion of route networks, and better global connectivity between markets.In the passenger segment, the July load factor was 85.5% (-0.4 ppt compared to July 2024).International demand rose 5.3% in July compared to July, 2024. Capacity was up 5.8% year-on-year, and the load factor was 85.6% (-0.4 ppt compared to July 2024).Domestic demand increased 1.8% in July compared to the same month in 2024. Capacity was up 2.3% year-on-year. The load factor was 85.2% (-0.4 ppt compared to July 2024).In the global air cargo segment, capacity, measured in available cargo tonne-kilometres (ACTK), increased by 3.9% compared to July 2024 (+4.5% for international operations).IATA Director General Willie Walsh noted, “Air cargo demand grew 5.5% in July, a strong result. Most major trade lanes reported growth, with one significant exception: Asia–North America, where demand was down 1.0% year-on-year.“A sharp decline in e-commerce, as the US 'de minimis' exemptions on small shipments expired, was likely offset by shippers frontloading goods in advance of rising tariffs for imports to the US. August will likely reveal more clearly the impact of shifting US trade policies.“While much attention is rightly being focused on developments in markets connected to the US, it is important to keep a broad perspective on the global network. A fifth of air cargo travels on the Europe–Asia trade lane, which marked 29 months of consecutive expansion with 13.5% year-on-year growth in July.”According to IATA, several factors in the operating environment should be noted.First, the global goods trade grew by 3.1% year-on-year in June.The July jet fuel price was 9.1% lower year-on-year and has remained below 2024 levels so far this year, easing airlines’ operating costs. However, it was 4.3% higher than in June.Global manufacturing contracted in July with the PMI falling to 49.66, the second dip below the 50-mark growth threshold since January.Also, new export orders also remained negative at 48.2 for the fourth month, reflecting waning confidence amid US trade policy uncertainty.“It has been a good northern summer season for airlines. Momentum has grown over the peak season with July demand reaching 4% growth. That trend appears across all regions and is particularly evident for international travel, which strengthened from 3.9% growth in June to 5.3% in July. Moreover, with flight volumes showing a 2% year-on-year increase for September after five months of decelerating growth, airlines are positioned to take advantage of this market momentum into the coming months,” Walsh noted.Rising cargo volumes typically reflect growth in international trade, manufacturing, and supply chain demand. Passenger growth points to higher consumer confidence, business travel recovery, and robust tourism.July is usually a peak travel season in the Northern Hemisphere, but stronger-than-usual growth suggests that the industry may be moving beyond past slowdowns triggered by pandemic aftereffects, geopolitical disruptions, or supply chain constraints.Sustained improvements in both segments signal that stakeholders (governments, investors, airports, and logistics firms) see the industry on a stable growth trajectory, supporting investment and fleet expansion.Clearly, the improvement in passenger and cargo volumes in July highlights a rebound in the global air transport industry. Higher passenger traffic reflects strong travel demand, while increased cargo volumes point to healthy global trade flows.The dual rise in passengers and cargo confirms that the industry is on a path of resilience and long-term growth, supported by both consumer demand and global economic activity.Together, they indicate renewed economic momentum, rising consumer and business confidence, and a continued recovery in international connectivity.