Airlines recorded 4.4% growth in cargo demand in March – IATA

The demand for air cargo markets in March 2025 increased by by 4.4% compared to March 2924 as stated by the data released for the month by the International Air Transport Association (IATA).

According to IATA, total demand, measured in cargo tonne-kilometers (CTK), increased by 4.4% compared to March 2924 levels (+5.5% for international operations), a historic peak for March.

Capacity, measured in available cargo tonne-kilometers (ACTK), expanded by 4.3% compared to March 2024 (+6.1% for international operations).

This growth was attributed to several factors in the operating environment. Such as:

March volumes typically rise after a lull in February, and this single-digit increase is in line with pre-COVID growth trends.

Jet fuel prices dropped 17.3% year-on-year, marking nine straight months of year-on-year declines.

The sharp rise in US tariffs and new trade rules, especially the 2 May ban on duty-free imports from China and Hong Kong, may have prompted companies and buyers to make purchases in advance to avoid significant import fees.

World industrial output grew 3.2% year-on-year, and trade volumes expanded 2.9%. Many key Consumer Price Inflation (CPI) indices fell: US inflation was 2.4%, down 0.4 points from February, EU CPI was 2.5% and Japan’s rate fell 0.1% to 3.6%. China remains in deflation but this eased to -0.1%.

Commenting on the development, Willie Walsh, IATA’s Director General, said “March cargo volumes were strong. It is possible that this is partly a front-loading of demand as some businesses tried to beat the well-telegraphed 2 April tariff announcement by the Trump Administration. The uncertainty over how much of the 2 April proposals will be implemented may eventually weigh on trade. In the meantime, the lower fuel costs—which are also a result of the same uncertainty—are a short-term positive factor for air cargo. And, within the temporary pause on implementation we hope that political leaders will be able to shift trade tensions to reliable agreements that can restore confidence in global supply chains.”

March Regional Performance

Asia-Pacific airlines saw 9.6% year-on-year demand growth for air cargo in March, the strongest growth among the regions. Capacity increased by 11.3% year-on-year.

North American carriers saw a 9.5% year-on-year increase in demand growth for air cargo in March. Capacity increased by 6.1% year-on-year.

European carriers saw a 4.5% year-on-year increase in demand growth for air cargo in March. Capacity increased 2.0% year-on-year.

Middle Eastern carriers saw a -3.2% year-on-year decrease in demand growth for air cargo in March. Capacity increased by 0.8% year-on-year. It’s possible the weakness in this market is due to year-on-year comparison with the strong growth at the start of 2024 resulting from disruption to Red Sea maritime freight.

Latin American carriers saw 5.8% year-on-year demand growth for air cargo in March. Capacity increased 4.7% year-on-year.

African airlines saw a -13.4% year-on-year decrease in demand for air cargo in March, the slowest among the regions. Capacity increased by 10.5% year-on-year.

On the Trade Lane Growth, IATA said the Europe-North America route was the busiest trade lane in March. The largest trade lane by market share, Asia-North America, also grew strongly, possibly encouraged by front-loading shipments ahead of potential increased tariffs. Europe-Middle East and Africa-Asia were the only trade lanes to decline in March.