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July 14, 2025 by PLA Editor

association of asia pacific airlines

Preliminary financial performance figures released today by the Association of Asia Pacific Airlines (AAPA) showed that Asia Pacific carriers achieved US$7.3 billion in combined net profits in 2024, supported by strong growth in passenger traffic and a marked recovery in cargo volumes. Nevertheless, the region’s carriers faced a challenging operating environment due to ongoing supply chain constraints and rising operating costs.

For the year, robust growth in business and leisure travel, both within the region and globally, resulted in a 19.9% increase in systemwide passenger demand, in revenue passenger kilometer (RPK) terms. Meanwhile, a surge in e-commerce activity and disruptions to maritime shipping contributed to a solid 13.9% increase in international air cargo demand, as measured in freight tonne kilometres (FTK), following two consecutive years in decline.

Asia Pacific airlines recorded a 7.7% increase in operating revenue, reaching a combined total of US$213.9 billion in 2024, compared to US$198.6 billion in 2023. Aggregated passenger revenue rose by 8.8% to US$170.4 billion, while cargo revenue climbed by 10.3% to US$23.2 billion. Robust traffic growth more than offset the impact of a 9.2% decline in passenger yields to 8.0 US cents per RPK, and a 3.2% decline in air cargo yields to 32.7 US cents per FTK.

Combined operating expenses rose by 8.4% to US$199.8 billion for the year, due mainly to a 10.1% increase in non-fuel expenditure to US$138.9 billion. Persistent supply chain challenges, including shortages of spare parts, aircraft delivery delays and aircraft groundings due to engine issues, drove up maintenance and leasing costs. Inflationary pressures also contributed to higher staff expenditure and airport charges.

Fuel expenditure, the single largest cost item, rose by 4.8% to US$60.8 billion, in tandem with an increase in flights operated. The increase was partly mitigated by a 13.4% decline in jet fuel prices to an average of US$98.1 per barrel in 2024. The share of fuel expenditure as a percentage of total operating costs averaged 30.5%, down from 31.5% in 2023.

 

Commenting on the financial results, Mr. Subhas Menon, AAPA Director General said, “2024 was a year of remarkable resilience for Asia Pacific airlines, as carriers confronted multiple challenges while achieving strong growth in both passenger and cargo demand, along with record passenger load factors. However, airlines were not immune to cost pressures. The marked increase in operating expenses, particularly non-fuel costs, underscored the impact of supply chain constraints. Despite this, Asia Pacific airlines demonstrated their adaptability, delivering operating margins of 6.6% for the year, just 0.6 percentage points under the 7.2% in 2023.”

Looking ahead, Mr. Menon said, “The region’s carriers continue to face considerable headwinds, including elevated operating costs and ongoing supply chain disruptions. Geopolitical tensions may lead to renewed volatility in oil and currency markets while air cargo markets may soften further, as uncertainties over trade negotiations dampen demand for air shipments.”

“Nevertheless, air passenger demand is expected to remain relatively resilient, amidst continued growth in the region’s economies. In response, airlines are actively refining their business strategies, maintaining cost discipline while pursuing new revenue streams. At the same time, carriers are investing in fleet modernisation, digital innovation, and enhanced service offerings to deliver a high-quality travel experience.”

Other Topics: Air Cargo Network, Air Express, Air Freight Services, Air Logistics, Asia Pacific Air Cargo, Asia Pacific Air Freight, Asia Pacific Air Logistics, Asia Pacific Shipments, Association Of Asia Pacific Airlines (AAPA), Cargo Flights, E-Commerce Logistics, Express Delivery, Express Logistics, International Air Shipments, International Express Delivery, Transpacific Air Cargo, Transpacific Air Freight

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By Damian BrettDamian Brett18 July 2025

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Jaromir Chalabala/ Shutterstock 2/03/2022

Plans to develop a negotiable cargo document that can be utilised by the air cargo industry have taken another step forward after the United Nations Commission on International Trade Law (UNCITRAL) approved a draft convention.

As well as approving the convention, UNCITRAL also recommended the draft for adoption by the United Nations General Assembly.

“The new draft convention addresses a legal gap in international trade by establishing a harmonised legal framework for negotiable documents of title across all modes of transport—air, road, rail, and sea—regardless of the different modes of transportation used for the cargo,” the International Civil Aviation Organization (ICAO) explained.

The document would mirror bills of lading used in ocean shipping that enable goods to be bought, sold, or used as collateral while still in transit.

“In contrast, the documents used for goods transported by road, rail, and air are typically non-negotiable, meaning they cannot be transferred to another party as a means of transferring the goods they represent,” ICAO explained.

“This legal gap has created cash flow problems for businesses, including micro, small and medium enterprises, when goods are transported via inland routes, limited opportunities for businesses in landlocked regions to trade across borders and hindered the development of seamless door-to-door transportation services.”

The draft convention on negotiable cargo documents was finalised during UNCITRAL’s 58th session.

ICAO said the document had been in development for three years and had involved the work of diplomats, legal experts and trade professionals.

Beate Czerwenka, chair of the working group that had led developments, said: “Today marks a pivotal moment for the future of global commerce. The Commission has finalized a text that bridges a long-standing legal gap, extending the proven benefits of negotiability to all forms of transport.

“This will empower small businesses to access finance, landlocked nations to participate more fully in global trade, and us all to build a more efficient, resilient, and digitalised trade ecosystem.

 

“Thanks to the new draft convention on negotiable cargo documents, the vision of a world where trade is faster, safer and more accessible is becoming a reality. All Member States are encouraged to support this transformative instrument in the General Assembly.”

The draft convention on negotiable cargo documents will be transmitted to the United Nations General Assembly, with a recommendation for adoption during the General Assembly’s 80th session in late 2025.

Under the proposals, the negotiable cargo documents will exist in a digital form, known as negotiable electronic cargo records.

The draft instrument will provide a legal framework for the issuance and use of a single electronic record that could cover door-to-door transportation, thereby simplifying the documentation process and increasing efficiency in operations.

 

4 July 2025           No. 32

Geneva – The International Air Transport Association (IATA) expressed its deep disappointment at the recommendation of the Global Solidarity Levies Task Force (GSLTF) to target air transportation in its aim to “improve domestic revenue mobilization of developing countries and support international solidarity (in particular with regards to climate change mitigation and adaptation, pandemics and other development challenges).”

An initial assessment of the GSLTF’s proposals reveals severe deficiencies, including that:

• A Competitive Airline Industry Does Not Generate Excessive Profits: The GSLTF announcement, while lacking any meaningful detail, quotes a CE Delft estimation that a premium flyer levy could generate EUR 78 billion (over USD 90 billion) per year. That is approximately three times the airline industry’s global estimated profit of USD 32.4 billion in 2024. Airlines’ structurally thin net profit margin (estimated at an average of 3.4% industrywide for 2024 and approximately half the global average for all industries) must also be considered in any policy deliberation.
• The Airline Industry Has a Multi-Trillion Dollar Commitment to Sustainability: Airlines have committed to achieving net zero carbon emissions by 2050—an effort that is expected to cost USD 4.7 trillion over the period 2024-2050. This will ensure that aviation can deliver its direct contribution of 3.9% of global GDP and 86.5 million jobs globally while addressing its estimated 2.5% share of global carbon emissions. Increasing aviation taxes on airlines as proposed will limit the industry’s ability to invest in solutions that deliver long-term emissions reductions.
• A Specialized Climate Financing Mechanism for Aviation Already Exists: The GSLTF’s proposal disregards the role of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which was agreed through the International Civil Aviation Organization and is the world’s first globally agreed mechanism to manage carbon emissions from an industrial sector—in this case international aviation. The GSLTF states were among those that created CORSIA under the principle that it would be the single harmonized market-based measure to manage international aviation’s carbon emissions. Overlapping measures, such as the Solidary Levy, would undermine CORSIA and lead towards a fragmented, inefficient and inconsistent global policy framework. It is essential that all states (those in the GSLTF included) focus on making CORSIA successful rather than advancing overlapping measures. Topping the agenda of critical support needed for CORSIA is states making available the carbon credits so that airlines can fulfil their CORSIA obligations and states can realize their climate financing value.

 

• Failure to Assess Rising Costs is an Inescapable Consequence of the Proposed Levy: In addition, the GSLTF has not released any assessment of the impact that such a levy would have on the economies of the very states to which it aims to funnel the funds, or the broader impact it will have on all travelers. It has also not detailed how such funds would be used. Although the GSLTF is positioning its proposal as targeting premium travel, it fails to recognize the critical importance of this segment to making route networks viable. Punishing premium travelers or burdening the sector with excessive taxes would upend route dynamics which enable the connectivity that nearly five billion travelers will rely upon this year. The impact of the GSLTF’s proposal would make airlines less efficient and more financially strained. This would mean higher costs for all travelers and for items shipped by air. Such reduced affordability for a sector that is an indispensable economic catalyst ultimately brings the unintended consequence of weaker economic growth.

“The airline industry is an economic catalyst, not a cash cow. Yet governments casually suggest a tax on flyers that is three times the airline industry’s annual profit without considering the real-world side effects for an industry that is a lifeline for remote communities, invigorates tourism markets and links local products to global markets. Moreover, while the modalities for the GSLTF proposal are not specified, history shows us that these taxes simply go to the general exchequer, with little, if any, of the revenues generated going to climate change adaptation,” said Willie Walsh, IATA’s Director General.

“The GSLTF says that their solidarity levies won’t increase the cost of living for ordinary citizens or impact things like household bills. This is untrue. The bottom line is that, if followed, the GSLTF’s recommendations will increase the cost of air travel for all travelers and do more harm than good. Extracting tens of billions from aviation will cripple its ability to invest in achieving net zero by 2050, change route dynamics to the extent that connectivity will suffer, and short-change countries on the critical economic support that air transportation provides,” said Walsh.

“To be clear, airlines are not evading doing their part to mitigate the impacts of climate change. The industry is doing everything possible to achieve net zero carbon emissions with Sustainable Aviation Fuels (SAF), more efficient operations, and better technology. The last thing these efforts need is a USD90 billion gut punch of a tax. With respect to air transportation, the aims of the GSLTF could best be realized by supporting investments in SAF production so airlines can deliver prosperity by connecting people and businesses to global opportunities,” said Walsh.

Independent global research carried out by Savanta in 15 countries for IATA reveals deep public skepticism over air travel taxation:

• 73% said that green taxes are government greenwashing
• 79% said there are too many taxes on flying
• 78% said that taxation is not the way to make aviation sustainable
• 74% don’t trust governments to spend tax money wisely

 

• 88% believe that taxes collected from air travel should be invested to improve travel for passengers
• Taxation was the least popular modality to compensate for carbon emissions associated with flying with only 9% support. More popular preferences are SAF purchases (25%), carbon emissions reducing technology investments (23%), emissions reduction research (18%) and offsetting (13%).

 

 

 

 

 

 

 

 

By Damian BrettDamian Brett30 June 2025

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Pallet being loaded

Air cargo demand continued to grow in May despite the US implementation of steep tariffs and the ending of the de minimis exemption for shipments from China.

The latest monthly statistics from IATA show that air cargo demand increased by 2.2% year on year in May, while capacity was up 2% and the load factor increased by 0.1 percentage points to 44.5%.

Growth has slowed compared with the year so far, as the growth rate for the first five months stands at 3.2% year on year.

While overall volumes were up, IATA said that demand on the trade lane from Asia to North America had declined by 10.7%.

However, this was more than made up for by other trades, such as Asia-Europe, which was up by 13.4%, there was a 10.8% improvement on Middle East-Asia services, the within-Asia trade improved by 9.1% and North America-Europe grew by 8.2%.

IATA said the “significant decrease” in the Asia-North America trade lane was expected as the effect of front-loading faded and changes to the de-minimis exemption on small package shipments were enforced.

“As cargo flows reorganised, several route areas responded with surprising growth,” the airline association explained.

IATA director general Willie Walsh said: “Air cargo demand globally grew 2.2% in May. That is encouraging news, as a 10.7% drop in traffic on the Asia to North America trade lane illustrated the dampening effect of shifting US trade policies.

“Even as these policies evolve, already we can see the air cargo sector’s well-tested resilience helping shippers to accommodate supply chain needs to flexibly hold back, re-route or accelerate deliveries.”

During the month, US tariffs on Chinese products reached as high as 145%, although the two countries later reached an agreement that saw the tariffs reduced to 30% for a 90-day period.

There were reports of a surge in shipments to the US once the tariff reduction was announced, as companies looked to take advantage of the lower rate and others were catching up.

 

Meanwhile, the removal of the de minimis exemption means packages from China transported by a commercial airline will need to pay a 30% tariff rate, or, when using postal networks, they will be subject to a rate of 54% or a flat fee of $100.

Figures from consultant Aevean show that much of the US e-commerce demand from China switched to other lanes.

Looking at trade indicators, IATA pointed out that global manufacturing contracted in May, with the Purchasing Managers Index falling to 49.1, below the 50 mark that signals growth

New export orders also remained in negative territory at 48, reflecting pressure from recent US trade policy changes, IATA said.

In terms of regional performance, Asia Pacific airlines registered 8.3% year-on-year demand growth for air cargo in May, the strongest growth of all regions, and capacity increased by 5.7%.

North American carriers noted a -5.8% year-on-year decrease in growth for air cargo in May, the slowest growth of all regions, while capacity decreased by -3.2% year-on-year.

European carriers saw 1.6% year-on-year demand growth for May and capacity increased 1.5%.

Middle Eastern carriers reported a 3.6% increase in demand for the month, while capacity was up 4.2%.

Latin American carriers registered a 3.1% year-on-year increase in May and capacity increased 3.5%.

Finally, African airlines saw a 2.1% decrease and capacity increased by 2.7%.

By Damian BrettDamian Brett18 June 2025

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Atlas Air Worldwide is expecting a shortage of widebody freighter capacity for the next ten years and beyond.

Speaking to Air Cargo News at the recent Air Cargo Europe event, chief executive Michael Steen explained that widebody freighter capacity additions would struggle to keep pace with demand growth, given the need to retire older aircraft and the lack of new aircraft able to enter the market.

Steen explained that there are currently around 630 widebody freighters in operation, but around 100 of those are older than 30 years and are therefore heading towards the typical retirement age.

“What is important to also remember is that the older the aircraft gets, the lower the utilisation is going to be because you need to maintain them more frequently,” Steen explained.

“So, the global freighter fleet is now ageing and we are seeing a situation here that we haven’t seen before, where aircraft are retiring faster than they are being replenished.”

Steen said that widebody freighter capacity is only expected to grow at 1% per year as production of the Boeing 777 freighter is due to end in 2027 and deliveries of the next generation of widebody freighters – the Boeing 777-8F and the Airbus A350F – are not due to start until 2028 and the second half of 2027 respectively, assuming there are no further delays to the production timeline.

“This means you have at least one calendar year with zero new freighters,” said Steen.

Meanwhile, he pointed out that none of the three 777 conversion programmes have yet received certification from aviation authorities, and much of the feedstock is tied up in passenger operations as production of next-generation passenger jets continues to be delayed.

According to IATA, the global backlog for new aircraft orders has reached a record 17,000 aircraft.

On the demand side of the equation, cargo volumes are expected to grow at around 3.5%-5.5% per year in the long term.

“When you look at all this and put it together, we are going to be capacity-constrained well towards the 2040s, and there is structurally no way around it from a capacity perspective,” said Steen.

“When you look at all this and put it together, we are going to be capacity-constrained well towards the 2040s, and there is structurally no way around it from a capacity perspective,” said Steen.

“The only thing that could derail this is a complete collapse of the global economy.”

 

On the topic of future widebody freighter capacity, Steen was circumspect regarding Atlas’ future plans.

The company is the world’s largest widebody freighter operator, with 15% of the global widebody fleet, when MD-11Fs aren’t included, but it has yet to confirm its plans for the next generation of freighters.

Atlas’ Michael Steen appointed to IATA’s board of governors

“We added eight widebody aircraft last year, we added two more 777 freighters this year, so the fleet is continuing to grow, and we will continue to capitalise on what is available in the marketplace over the next few years,” said Steen.

“But we are reviewing our long-term fleet strategy, and we will make a decision, likely this year, in terms of what we are going to do going forward.”

He pointed out that its fleet of widebody freighters was relatively young, which gives the company some flexibility.

On the current market conditions, Steen said Atlas takes a long-term view and considers the market holistically.

Atlas has capitalised on growing e-commerce demand with direct agreements with several of the e-commerce platforms.

However, this sector faces increased scrutiny, not only with duties now being applied in the US and other regulators looking to take similar steps, but also because shipments to the US now need to pass through the customs process, which increases both complexity and lead times.

Steen says there was a big demand dip when “liberation day” happened, with industry-wide volumes on the transpacific dropping by as much as 40%.

“But globally, airfreight continued to grow and demand continued to grow. The e-commerce players in China opened up new markets and re-routed their controlled capacity,” said Steen.

“We re-routed those aircraft to operate into Mexico and various locations in South America and Europe where these e-commerce platforms continue to expand.”

As a result, Steen said the impact of US tariffs and the removal of de minimis for China and Hong Kong had been “relatively muted”, although he added that the company did feel some of the impact.

Steen explained that Atlas is able to flex its assets and has a global reach, with more than 300 destinations in more than 80 countries, meaning it can more easily switch capacity to match demand.

He pointed out that combination carriers need to operate through hub and spoke systems, belly capacity is tied into passenger networks and integrators also need to operate through hubs.

“Our model is completely flexible because we literally just move the aircraft. We have outsourced all the handling, we have outsourced all the maintenance, so we don’t have that fixed infrastructure that holds you back.”

Also, much of Atlas’ business is on a long-term basis, which has also protected the company. Meanwhile, it also has a range of customer types.

“If you look at our business, we are highly diversified across the entire supply chain,” said Steen.

“We serve several airlines with ACMI capacity, we have dedicated agreements with several of the freight forwarders, we have dedicated agreements with the ocean shipping companies, we operate for all the express carriers, and we lease aircraft directly to manufacturers and e-commerce platforms as well.”

By Damian BrettDamian Brett14 June 2025

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Air cargo volumes between China and the US began to ease back in the first full week of June after surging from mid-May.

Figures from data provider WorldACD show that in the week ending 8 June (week 23), flown chargeable weight from China and Hong Kong to the US fell 10% compared with a week earlier and is around 19% down year on year.

Spot rates on the trade, which had also surged as May progressed, were also down in week 23. WorldACD figures show that spot prices dropped 5% compared with a week earlier and are down 17% compared with last year.

WorldACD said demand from China and Hong Kong had been given a boost in May thanks to the pause of the tarrif war between China and the US.

This now appears to have eased off.

“This significant decrease in both tonnages and rates ex-CN/HK to the US followed a short recovery during the previous three weeks after the most-recent set of US import tariffs on CN/HK-made goods was paused.

“With that pause in tariffs remaining in place for now, this latest slump in the CN/HK to US market in week 23 suggests that last month’s rebound was a temporary rather than structural recovery, linked to delayed volumes ‘catching up’ following the suspension of the punishingly high tariffs that had been imposed in April.”

WorldACD added that the decline in trade between the US and China was also a “significant factor” in the worldwide decline of tonnages by 3% week on week during week 23.

The data provider added that various holidays also played a role in the decline. Global volumes are down 2% year on year.

Volumes from China to Europe were also down, declining 5% week on week, although there was a 2% increase from Hong Kong.

 

“That contributed to a 4% week-on-week decrease in tonnages from Asia Pacific origins as a whole, although there was also a 6% week-on-week fall ex-Southeast Asia, largely driven by Eid Al-Adha holidays (5-8 June), especially from countries such as Malaysia (-14%) and Indonesia (-10%),” WorldACD said.

“Volumes ex-South Korea were also lower (-6%) due to the country’s Memorial Day on 6 June.”

While spot rates from China fell in week 23, overall full-market average spot and contract rates “were relatively stable in week 23” and increase d by 1% to $2.44 per kg.

Negotiable air cargo document draft convention set to be finalised

By Damian BrettDamian Brett9 June 2025

Preparation,Before,Flight.,Loading,Of,Cargo,Container,Against,Airplane.

The United Nations Commission on International Trade Law (UNCITRAL) is expected to soon finalise the draft convention on negotiable air cargo documents to allow the transfer of ownership of goods while in transit.

The draft document is expected to be finalised at the 58th UNCITRAL session to be held in Vienna between 7 July to 23 July.

At a recent event to raise awareness of negotiable documents, a call for action was launched to invite all governments interested in global trade to participate in the finalisation of the draft UN convention on negotiable cargo documents.

The draft convention establishes negotiable cargo documents as a title representing goods in transit across all modes of transport, which could be used to enhance flexibility in trade, bridge the trade finance gap and support the digital transformation of global trade.

Once finalised, the draft convention will be submitted to the United Nations General Assembly for adoption in late 2025.

Unlike ocean bills of lading, transport documents issued by rail, road and air carriers, which are often known as consignment notes or air waybills in the case of air cargo, are not used as documents of title and cannot be transferred to another party during transport.

The negotiable cargo document under development at UNCITRAL is intended to serve as a document of title to fill this gap in multimodal and unimodal transportation, not involving a maritime leg.

Being able to switch to alternative modes of transportation in case of disruption of shipping routes without diminishing the value of collateral in the context of trade finance or losing the ability to sell goods in transit is another reason for shippers to use negotiable cargo documents.

Under the proposals, the negotiable cargo documents will exist in a digital form, known as negotiable electronic cargo records.

The draft instrument will provide a legal framework for the issuance and use of a single electronic record that could cover door-to-door transportation, thereby simplifying the documentation process and increasing efficiency in operations.

 

1 June 2025         No. 22

New Delhi – The International Air Transport Association (IATA) reported that $1.3 billion in airline funds are blocked from repatriation by governments as of end April 2025. This is a significant amount, although it is an improvement of 25% compared with the $1.7 billion reported for October 2024.

IATA urged governments to remove all barriers preventing airlines from the timely repatriation of their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.

“Ensuring the timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain their operations. Delays and denials violate bilateral agreements and increase exchange rate risks. Reliable access to revenues is critical for any business—particularly airlines which operate on very thin margins. Economies and jobs rely on international connectivity. Governments must realize that it is a challenge for airlines to maintain connectivity when revenue repatriation is denied or delayed,” said Willie Walsh, IATA’s Director General.

10 countries are responsible for 80% of blocked funds

10 countries account for 80% of the total blocked funds, amounting to $1.03 billion.

Country                Amount USD Million

Mozambique     205

XAF Zone*          191

Algeria  178

Lebanon              142

Bangladesh         92

Angola  84

Pakistan               83

Eritrea   76

Zimbabwe           68

Ethiopia                44

*XAF Zone (Cameroon, Central African Republic, Chad, Congo, Equatorial Guinea, and Gabon)

Country Highlights

Pakistan and Bangladesh, previously in the top five blocked funds countries, have made notable progress in clearing their backlog to $83 million and $92 million, respectively (from $311 million and $196 million in October 2024, respectively).

Mozambique has climbed up to the top of blocked funds countries, withholding $205 million from airlines, compared with $127 million in October 2024. The Africa and Middle East (AME) region accounts for 85% of total blocked funds, at $1.1 billion as of end April 2025.

The most significant improvement was noted in Bolivia, fully clearing its backlog that stood at $42 million at end October 2024.

 

 

By Rebecca JeffreyRebecca Jeffrey29 May 2025

IATA: Air cargo volumes predicted to rise 5.8% in 2025

Seasonal demand, front loading of shipments to avoid tariffs and lower fuel prices helped air cargo demand rise again in April, but airlines need to remain ready for trade changes, IATA has warned.

The trade association said that total demand, measured in cargo tonne km (CTK), rose by 5.8% year on year. Month-on-month, demand also rose by 2.3%. Demand rose 4.4% year on year in March due to front loading of cargo.

“Fashion and consumer goods are typically shipped between April and June, ahead of the summer retail cycle, supporting these numbers. Moreover, front-loading aimed at avoiding the upcoming US tariff change on 2 May, 2025, regarding lifting of the de minimis allowance, contributed as well,” said IATA in its Air Cargo Market Analysis for April.

Capacity, measured in available cargo tonne km (ACTK), increased by 6.3%.

The cargo load factor (CLF)—measured as CTK divided by ACTK—stood at 43.9%, a 0.2 percentage point decline compared to April 2024.

“This slight decrease indicates that capacity growth outpaced demand, aligning with broader market trends in air freight utilisation,” said IATA.

Speaking about the industry’s performance in April, IATA director general Willie Walsh, said: “Air cargo demand grew strongly in April, with volumes up 5.8% year-on-year, building on March’s solid performance.

“Seasonal demand for fashion and consumer goods — front-loading ahead of US tariff changes — and lower jet fuel prices have combined to boost air cargo. With available capacity at record levels and yields improving, the outlook for air cargo is encouraging.

“While April brought good news, stresses in world trade are no secret. Shifts in trade policy, particularly in the US, are already reshaping demand and export dynamics. Airlines will need to remain flexible as the situation develops over the coming months.”

Alongside current trade tensions, IATA said air cargo growth outpaced global goods trade, which increased by 6.5% over the previous month.

The global manufacturing PMI rose to 50.5 in April, signalling expansion for the fourth consecutive month. However, the PMI for new export orders fell 2.8 points to 47.2, remaining below the 50 threshold for growth.

Additionally, jet fuel prices dropped 21.2% year on year and 4.1% month on month, the third consecutive monthly decrease.

Regionally, Asia Pacific and Latin American carriers led year-on-year demand growth in April, but Middle Eastern carriers trailed behind.

Latin American carriers saw a 10.1% increase in cargo traffic, while Asia Pacific airlines saw a 10% increase.

African airlines saw a 4.7% rise and North American carriers saw 4.2% growth. Meanwhile, European carriers experienced growth of 2.9% and Middle Eastern carriers saw 2.3%.

In terms of trade lane growth, all international routes experienced growth in April, except for Middle East-Europe, Africa-Asia, and intra-European, noted IATA.

By Rebecca JeffreyRebecca Jeffrey21 May 2025

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Cathay Cargo has reported reduced air cargo demand from Hong Kong and the Chinese Mainland in May following tariff and de minimis changes, but said volumes from other parts of its network are helping to fill the gap.

Writing in the company’s monthly performance wrap-up for April, chief customer and commercial officer Lavinia Lau gave an early preview into its performance for this month: “Turning to May, we have seen steady replacement cargo from other parts of our network, including Southeast Asia, during the first half of the month amidst reduced demand from Hong Kong and the Chinese Mainland.

“We will continue to closely monitor the ongoing developments in the second half.”

WorldACD data shows airfreight volumes from China and Hong Kong to the US have declined since the end of the de minimis exemption covering Chinese e-commerce packages in early May.

The US and China have since paused their trade war for 90 days, reducing tariffs from 145% to 30%.

Non-postal e-commerce packages from China are subject to the 30% tariff rate while packages being transported through postal networks face a 54% (or a $100 flat fee) rate.

Lau added that “the latest announcements regarding the tariffs between China and the US provide some reassurance to the market in the near term” and said the airline would adjust freigher capacity if necessary.

While it’s not yet clear what impact trade disruption will have on Cathay Cargo’s airfreight volumes this month, in April, Cathay achieved a 13.6% year-on-year increase in air cargo volumes.

Demand for specialist solutions offered by the business continued to grow, said Lau.

Available Freight Tonne Kilometres (AFTKs) increased by 8.9% while load factor decreased by 1.1 percentage points year on year.

In the first four months of 2025, the total tonnage increased by 12.4% compared with the same period for 2024.

Lau said: “Tonnage in April was 10.4% lower than in March, primarily due to the traditional first quarter-end peak in March and the various holiday periods in April. However, our specialist solutions maintained their growth momentum and we saw increased demand for our Cathay Priority solution on the Asia Pacific-United States trade lane ahead of the implementation of trade tariffs.

 

“Demand for our Cathay Expert solution continued to grow, supported by robust exports of semiconductor machinery from North Asia as well as ad hoc demand out of Europe to Hong Kong.”

Cathay’s year-on-year increase in air cargo volumes for April is well ahead of the 4% growth in global volumes for the month that Xeneta previously reported.

In addition to tariff and de minimis challenges, the Association of Asia Pacific Airlines (AAPA) recently called for governments to tackle supply chain disruption that is delaying deliveries of new aircraft, constraining capacity and threatening Asia Pacific trade growth.