IATA: Air cargo industry must look to 2025 with 'some caution'

IATA stated (03-Dec-2024) global air cargo demand in CTKs increased 9.8% year-on-year for Oct-2024, marking the 15th consecutive month of growth. Capacity in ACTKs increased 5.9%, largely driven by an 8.5% increase in international bellyhold capacity. Dedicated freighter capacity increased 5.6%, the seventh consecutive month of growth with volumes nearing 2021 peak levels. Details include:

• Industrial production rose 1.6% in Sep-2024 while global goods trade increased 2.4% for the sixth consecutive month of growth. The increase in trade was partly due to businesses stockpiling inventory ahead of potential disruptions, including the US port strike;
• Global manufacturing activity rebounded in Oct-2024. The Purchasing Managers Index for global manufacturing output was above 50, indicating growth. However, the PMI for new export orders remained below 50, suggesting ongoing uncertainty and weakness in global trade;
• The US Consumer Price Index rose 0.17pp to 2.58% in Oct-2024, ending six months of decline. Inflation in the EU increased 0.24pp to 2.33%. China's inflation fell to 0.29%, sparking concerns of an economic slowdown.

IATA director general Willie Walsh stated: "While 2024 is shaping up to be a banner year for air cargo, we must look to 2025 with some caution". Mr Walsh continued: "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". He added: "The air cargo industry's proven adaptability to rapidly evolving geopolitical and economic situations is likely to be tested as the Trump agenda unfolds". [more - original PR]