Preliminary traffic figures for July 2025 reveal that international air cargo demand remained robust, driven by heightened export activity ahead of the U.S. tariff implementation in early August.
International air cargo demand, measured in freight tonne kilometers (FTK), posted a solid 8.6% year-on-year increase in July, despite ongoing challenges in global trade flows. With offered freight capacity rising by 6.4%, the average international freight load factor improved by 1.2 percentage points, reaching 62.0%.
AAPA Director General, Mr. Subhas Menon, commented, “Strong demand growth on routes connecting North East Asia and South Asia, coupled with the expansion of network connections, continued to drive traffic.”
Trade Figures Show 6.5% Year-on-Year Growth
Mr. Menon further noted, “During the same period, air cargo demand grew by 6.5% year-on-year, building on last year’s strong performance. Inventory build-ups ahead of U.S. tariff introductions, along with shipment rerouting and sourcing diversification, contributed to the growth in volumes. Businesses prioritized the speed and reliability of air shipments to meet these challenges.”
Outlook: Positive Growth Amid Uncertainty
Looking ahead, Mr. Menon stated, “The global economic outlook remains broadly positive, with healthy forward booking volumes supporting growth in travel markets. However, the implementation of tariffs introduces some uncertainty in air cargo markets and could impact future demand.”
Fuel Price Decline and Weak Dollar Support Supply Chain
“On the cost front, the 15% year-to-date decline in jet fuel prices, averaging US$89 per barrel, along with a weaker U.S. Dollar against some regional currencies, is helping to mitigate cost pressures from ongoing supply chain disruptions,” Mr. Menon explained.
He concluded, “Asian airlines remain committed to disciplined cost management while exploring new revenue opportunities to sustain growth and profitability.”
©AAPA2025PressRelease