Market News

By Justice Okamgba

African airlines are flying more goods than ever, with cargo demand rising 9.4 per cent in July compared to the same month last year, the International Air Transport Association said in an email on Friday.

The figure is almost double the global average of 5.5 per cent, showing the continent’s growing role in global trade. But while demand surged, capacity, which is the amount of space available to carry goods, slipped slightly by 0.1 per cent, highlighting the pressure on African carriers to keep up with rising volumes.

IATA Director-General Willie Walsh said Africa continues to show strong momentum in air cargo, driven by resilient regional trade and increasing connectivity with key markets. “The 9.4 per cent rise in demand, even with capacity contracting slightly, highlights the continent’s growing role in global cargo flows,” he said in the monthly newsletter seen by Saturday PUNCH.

Globally, air cargo demand grew by 5.5 per cent in July compared with the same month in 2024, with international operations up 6.0 per cent. Capacity rose by 3.9 per cent year-on-year, led by a 4.5 per cent increase for international operations.

Performance, however, varied across regions. Asia-Pacific airlines reported the strongest growth, up 11.1 per cent, supported by continued expansion on the Europe–Asia trade lane, which recorded 13.5 per cent growth and marked its 29th consecutive month of expansion.

North American carriers posted the weakest performance, with demand growing only 0.7 per cent while capacity fell 0.6 per cent. European carriers saw a 4.1 per cent increase in demand, Middle Eastern carriers rose 2.6 per cent, and Latin American airlines grew 2.4 per cent.

IATA noted that global trade conditions shaped July’s performance. The global goods trade grew by 3.1 per cent year-on-year in June, offering a supportive backdrop. Jet fuel prices were also 9.1 per cent lower year-on-year in July, easing operating costs for airlines, although they rose 4.3 per cent compared with June.

Meanwhile, global manufacturing contracted during the month, with the Purchasing Managers’ Index dipping to 49.66, below the 50-mark threshold that signals expansion. New export orders remained subdued at 48.2, reflecting declining business confidence amid ongoing US trade policy changes.

Walsh said shifting US trade measures, particularly the expiry of de minimis exemptions on small shipments and rising import tariffs, are expected to weigh on North America-bound cargo. “While much attention is on US-related trade lanes, it is important to keep perspective. Africa and Asia are demonstrating resilience, and Europe–Asia remains a powerhouse for global cargo,” he said.