Author: Admin

JD Airlines launches Shenzhen-Singapore cargo route

By Rebecca JeffreyRebecca Jeffrey22 September 2025

The new route will operate three times a week and connects China’s manufacturing hub with Southeast Asia’s key transshipment centre

First JD Airlines flight between Shenzhen and Singapore

JD Logistics’ cargo airline, JD Airlines has begun flying between Shenzhen, China and Singapore to support e-commerce and electronics demand in the Asia-Pacific region.

The first flight between Shenzhen Bao’an International Airport (SZX) and Singapore Changi Airport (SIN) took place on 19 September and is scheduled to be carried out every Wednesday, Friday and Sunday, taking off from Shenzhen at 9am and landing in Singapore at 3pm, said JD Logistics in a press release.

This new route is served with a 737-800 Boeing Coverted Freighter (BCF), which has a one-way maximum payload of 22 tons. According to Planespotters, JD Airlines’s fleet comprises 10 737-800 freighters in total, all converted.

In June last year, AerCap signed lease agreements for four 737-800BCFs with JD Airlines.

Outbound goods on the new route are mainly consumer electronics and e-commerce packages which will be flown directly to Singapore. A small amount of time-sensitive goods will be transited to the European and American markets through Singapore.

The return trip will mainly focus on electronic products, Singapore’s local auto parts and e-commerce goods transshipped from Europe and the US through Singapore.

The opening of this route is an important measure for JD Airlines to serve the Guangdong-Hong Kong-Macao Greater Bay Area economic circle and the core market of Southeast Asia, said JD Logistics.

In recent years, Shenzhen, as an important base for China’s scientific and technological innovation and cross-border e-commerce, has continued to increase its import and export demand for Southeast Asia. As a global trade, shipping and financial center, Singapore is an important hub connecting Southeast Asia with European and American markets.

JD Airlines said: “We hope that through this route, we will open a smoother channel for Chinese manufacturing and Chinese sellers, and improve the turnover efficiency of the entire supply chain in Southeast Asia and international markets.”

JD Airlines has opened more than 20 regular domestic and international routes, including Nantong, Incheon, Ezhou, Bangkok, Chengdu, Yangon, Shenzhen and Kuala Lumpur.

JD Logistics is a global provider of technology-driven supply chain and logistics services. Established as a dedicated business group of JD.com in April 2017, JD Logistics serves a wide range of businesses and individual consumers across China.

 

BBN Airlines Indonesia gains EASA TCO authorisation for EU operations

By Mike Bryant 16 September 2025

The EASA authorisation, effective from 5 September, allows the Avia Solutions Group subsidiary to expand aircraft, crew, maintenance and insurance services to airlines operating EU routes, marking a key milestone for the carrier’s regional growth strategy.

BBN Airlines Indonesia Boeing 737

BBN Airlines Indonesia Boeing 737

Source: Avia Solutions Group

BBN Airlines Indonesia has been granted Third-Country Operator (TCO) authorisation by the European Union Aviation Safety Agency (EASA) in a move that was effective as of 5 September this year.

This approval enables the wet-lease aircraft provider to operate in the EU and expand its aircraft, crew, maintenance and insurance (ACMI) services to airlines operating flights into the EU.

BBN Airlines Indonesia is a subsidiary of Avia Solutions Group, said to be the world’s largest ACMI provider, operating a fleet of 209 passenger and cargo aircraft around the world.

The group also provides various aviation-related services such as maintenance, repair and overhaul (MRO), pilot and crew training and ground handling.

BBN Airlines Indonesia today operates a fleet of one Boeing 737-400 freighter and one B737-800 freighter, as well as three B737-800 passenger aircraft and one B737-900ER passenger aircraft.

It also has two B737-800 passenger aircraft on order that are due to be delivered by October.

Compliance. All non-European operators wanting to fly to the EU are required to hold a TCO permit, which certifies compliance with EASA safety and operational standards.

With it, operators may obtain commercial air operations permits across all EASA member states without requiring separate authorisation from individual EU countries.

“Securing the EASA TCO marks an important milestone for BBN Airlines Indonesia,” Martynas Grigas, chairman of BBN Airlines Indonesia, commented.

“It reflects not only our unwavering commitment to global safety and compliance standards but also our readiness to support airlines with scalable ACMI solutions as they expand into and within the EU market.”

Earlier this year, BBN Airlines Indonesia achieved its IATA Operational Safety Audit (IOSA) certification.

 

Why CORSIA Matters

15 September 2025

Dear All,

CORSIA—the Carbon Offsetting and Reduction Scheme for International Aviation—will be in the spotlight when the 42nd Assembly of the International Civil Aviation Organization (ICAO) gets underway later this month. In this blog Marie Owens Thomsen, IATA Senior Vice President Sustainability & Chief Economist, highlights the critical importance of CORSIA to help decarbonize the air transport industry. While it was created and endorsed by Member States at the 2016 Assembly as the sole economic measure to mitigate the impact of international flying, it requires their continued support to make it a success.

You are welcome to quote from this blog or to republish it.

Key quote:

“Taking advantage of CORSIA to create a win-win-win-win situation should be a no-brainer: it helps countries generate much-needed climate finance, it channels airline decarbonization efforts into certifiable emission reductions, it helps countries with their commitments under the Paris Agreement, and contributes to improved socio-economic outcomes for all involved.”

Key points from the blog include:

• CORSIA requires airlines to purchase and cancel “emissions units” to offset their emissions over and above 85% of 2019 emissions. Operationally, it can be done by using CORSIA-eligible fuels or by buying carbon credits (Eligible Emissions Units, EEUs) that are generated from projects that reduce CO2 emissions.
• The States that agreed to create CORSIA oblige airlines to buy EEUs but States are not obliged to provide them. Therein lies the key challenge: there are not enough EEUs on the market for airlines to purchase and paradoxically, without sufficient EEUs, it will be challenging for airlines to meet their CORSIA obligations.
• The key message from the airline industry to the ICAO Assembly is that following a “global standard” approach is the only way to solve the net zero carbon emissions challenge. That means making CORSIA a success, and supplying the market with sufficient EEUs.

August 21, 2025 by PLA Editor

Hong kong international airport

In July, Hong Kong International Airport (HKIA) handled 5.2 million passengers and 33,670 flight movements, representing 9.7% and 8.3% year-on-year growth, respectively. While transfer/ transit passengers continued to experience growth from a low base, overall passenger traffic growth softened due to adverse weather and a decline in travel demand to Japan.

Cargo throughput saw a 3.9% year-on-year increase to 430,000 in July, mainly driven by stronger traffic to/ from Europe and the Middle East, which offset declines in traffic to/ from North America.

For the first seven months of the year, passenger volume rose to 34.6 million, while flight movements increased to 226,020, experiencing growth of 15.3% and 9.8% respectively, compared to the same period of 2024. Cargo throughput recorded a year-on-year increase of 2.2% to 2.83 million tonnes for the same period.

On a 12-month rolling basis, passenger volume grew by 17.3% year-on-year to 57.6 million, while flight movements increased by 13.1% to 383,450. Cargo throughput rose by 5.4% year-on-year to about 5 million tonnes.

Meanwhile, HKIA continues to expand its extensive air network with airlines resuming more routes and launching new ones in recent months. Notable additions include Munich, Rome and Brussels in Europe; Subang in Southeast Asia; Yiwu and Datong in Mainland China, among others, further reinforcing the airport’s role as an international aviation hub in Asia.

Hong Kong International Airport is a nominee at the 12th Payload Asia Awards under the categories Cargo Airport of the Year – Asia Pacific, Global Airport of the Year – Top Award, and Air Cargo Technology Provider of the Year. To be part of this annual program, visit the official page of the 12th Payload Asia Awards.

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, Cargo Flights, E-Commerce Logistics, Express Delivery, Express Logistics, Hong Kong International Airport (HKIA), International Air Shipments, International Express Delivery, Transpacific Air Cargo, Transpacific Air Freight

Geneva – The International Air Transport Association (IATA) released data for June 2025 global passenger demand with the following highlights:

• Total demand, measured in revenue passenger kilometers (RPK), was up 2.6% compared to June 2024. Total capacity, measured in available seat kilometers (ASK), was also up 3.4% year-on-year. The June load factor was 84.5% (-0.6 ppt compared to June 2024).
• International demand rose 3.2% compared to June 2024. Capacity was up 4.2% year-on-year, and the load factor was 84.4% (-0.8 ppt compared to June 2024).
• Domestic demand increased 1.6% compared to June 2024. Capacity was up 2.1% year-on-year. The load factor was 84.7% (-0.4 ppt compared to June 2024).

“In June, demand for air travel grew by 2.6%. That’s a slower pace than we have seen in previous months and reflects disruptions around military conflict in the Middle East. With demand growth lagging the 3.4% capacity expansion, load factors dipped 0.6 percentage points from their all-time record-high levels. At 84.5% globally, however, load factors are still very strong. And with a modest 1.8% capacity growth visible in August schedules, load factors over the Northern summer are unlikely to stray far from their recent historic highs,” said Willie Walsh, IATA’s Director General.

Air passenger market in detail – June 2025

June 2025

(% year-on-year)             World share1     RPK        ASK        PLF (%-pt)           PLF (level)

Total Market      100%     2.6%      3.4%      -0.6%     84.5%

Africa    2.2%      0.8%      1.5%      -0.6%     74.6%

Asia Pacific          33.5%    5.0%      4.7%      0.3%      83.0%

Europe 26.7%    2.2%      2.6%      -0.3%     87.8%

Latin America     5.3%      7.9%      9.6%      -1.3%     82.9%

Middle East        9.4%      -0.2%     1.6%      -1.4%     78.3%

North America  22.9%    0.1%      2.1%      -1.7%     86.4%

1% of industry RPKs in 2024

Regional Breakdown – International Passenger Markets

International RPK growth reached 3.2% in June year-on-year, but load factor fell across all regions as capacity growth outstripped demand. The steepest fall in RPK growth from May was in the Middle East, where international traffic contracted 0.4% year-on-year, impacted by military conflict.

Asia-Pacific airlines achieved a 7.2% year-on-year increase in demand. Capacity increased 7.5% year-on-year, and the load factor was 82.9% (-0.2 ppt compared to June 2024).

European carriers had a 2.8% year-on-year increase in demand. Capacity increased 3.3% year-on-year, and the load factor was 87.4% (-0.4 ppt compared to June 2024).

North American carriers saw a 0.3% year-on-year fall in demand. Capacity increased 2.2% year-on-year, and the load factor was 86.9% (-2.2 ppt compared to June 2024).

Middle Eastern carriers saw a 0.4% year-on-year decrease in demand. Capacity increased 1.1% year-on-year, and the load factor was 78.7% (-1.2 ppt compared to June 2024). Military conflict particularly impacted traffic on routes to North America (-7.0% year-on-year) and Europe (-4.4% year-on-year).

Latin American airlines saw a 9.3% year-on-year increase in demand. Capacity climbed 11.8% year-on-year. The load factor was 83.3% (-1.9 ppt compared to June 2024).

African airlines saw a 0.3% year-on-year decrease in demand. Capacity was up 0.3% year-on-year. The load factor was 74.6% (-0.5 ppt compared to June 2024). The decline in African load factor may be due to increased competition from European and Middle Eastern carriers.

Domestic Passenger Markets

Domestic RPK rose 1.6% over June 2024 and load factor fell by 0.4 ppt to 84.7% on the back of a 2.1% capacity expansion. Brazil was the standout performer, and the US domestic market saw a very slight expansion for the first time in four months.

June 2025

(% year-on-year)             World share1     RPK        ASK        PLF (%-pt)           PLF (level)

Domestic             38.2%    1.6%      2.1%      -0.4%     84.7%

Dom. Australia  0.8%      0.9%      1.5%      -0.5%     81.1%

Dom. Brazil         1.1%      14.7%    17.0%    -1.7%     83.0%

Dom. China P.R.                11.3%    3.8%      3.0%      0.6%      83.1%

Dom. India          1.7%      5.4%      9.0%      -2.9%     84.3%

Dom. Japan        1.0%      2.9%      -0.3%     2.3%      75.3%

Dom. US              14.4%    0.1%      1.8%      -1.5%     86.0%

1% of industry RPKs in 2024

Note: the six domestic passenger markets for which broken-down data are available account for approximately 30.2% of global total RPKs and 79.1% of total domestic RPKs

>Read the latest Passenger Market Analysis

For more information, please contact:

Corporate Communications

Tel: +41 22 770 2967

Email: corpcomms@iata.org

▪    IATA (International Air Transport Association) represents some 350 airlines comprising more than 80% of global air traffic.

▪    You can follow us on X for announcements, policy positions, and other useful industry information.

▪    Fly Net Zero

▪    Statistics compiled by IATA Economics using direct airline reporting complemented by estimates, including the use of FlightRadar24 data provided under license.

▪    All figures are provisional and represent total reporting at time of publication plus estimates for missing data. Historic figures are subject to revision.

▪    Domestic RPKs accounted for about 38.2% of the total market in 2024. The six domestic markets in this report account for 30.4% of global RPKs.

▪    Explanation of measurement terms:

‒  RPK: Revenue Passenger Kilometers measures actual passenger traffic

‒  ASK: Available Seat Kilometers measures available passenger capacity

‒  PLF: Passenger Load Factor is % of ASKs used.

▪    IATA statistics cover international and domestic scheduled air traffic for IATA member and non-member airlines.

▪    Total passenger traffic market shares by region of carriers for 2024 in terms of RPK are: Asia-Pacific 33.6%, Europe 26.7%, North America 22.9%, Middle East 9.4%, Latin America 5.3%, and Africa 2.2%.

31 July 2025        No. 33

Geneva – The International Air Transport Association (IATA) released data for June 2025 global air cargo markets showing:

• Total demand, measured in cargo tonne-kilometers (CTK), rose by 0.8% compared to June 2024 levels (1.6% for international operations).
• Capacity, measured in available cargo tonne-kilometers (ACTK), increased by 1.7% compared to June 2024 (2.8% for international operations).

“Overall, air cargo demand grew by a modest 0.8% year-on-year in June, but there are very differing stories behind that number for the industry’s major players. Trade tensions saw North American traffic fall by 8.3% and European growth stagnate at 0.8%. But Asia-Pacific bucked the trend to report a 9.0% expansion. Meanwhile disruptions from military conflict in the Middle East saw the region’s cargo traffic fall by 3.2%,” said Willie Walsh, IATA’s Director General.

“The June air cargo data made it very clear that stability and predictability are essential supports for trade. Emerging clarity on US tariffs allows businesses greater confidence in planning. But we cannot overlook the fact that the ‘deals’ being struck are resulting in significantly higher tariffs on goods imported into the US than we had just a few months ago. The economic damage of these cost barriers to trade remains to be seen. In the meantime, governments should redouble efforts to make trade facilitation simpler, faster, cheaper and more secure with digitalization,” said Walsh.

Several factors in the operating environment should be noted:

• Year-on-year, world industrial production rose 3.2% in May and global goods trade grew by 3.5%.
• The June jet fuel price was 12% lower year-on-year, a fourth consecutive year-on-year monthly decline. It was, however, 8.6% up on May prices.
• Global manufacturing rebounded in June, with the PMI rising above the 50 mark to 51.2. The PMI for new export orders improved by 1.2 index points but remained in negative territory (49.3), under pressure from recent US trade policy shifts.

Air cargo market in detail – June 2025

June 2025

(% year-on-year)             World share1     CTK        ACTK     CLF (%-pt)           CLF (level)

Total Market      100%     0.8%      1.7%      -0.4%     45.5%

Africa    2.0%      3.9%      6.2%      -0.9%     42.1%

Asia Pacific          34.2%    9.0%      7.8%      0.6%      50.3%

Europe 21.5%    0.8%      2.6%      -0.9%     49.6%

Latin America and Caribbean      2.9%      3.5%      -0.4%     1.4%      36.6%

Middle East        13.6%    -3.2%     1.5%      -2.2%     45.2%

North America  25.8%    -8.3%     -5.1%     -1.3%     38.5%

1% of industry CTKs in 2024

June Regional Performance

Asia-Pacific airlines saw 9.0% year-on-year demand growth for air cargo in June, the strongest growth of all regions. Capacity increased by 7.8% year-on-year.

North American carriers saw an 8.3% year-on-year decrease in growth for air cargo in June, the slowest growth of all regions. Capacity decreased by 5.1% year-on-year.

European carriers saw 0.8% year-on-year demand growth for air cargo in June. Capacity increased 2.6% year-on-year.

Middle Eastern carriers saw a 3.2% year-on-year decrease in demand for air cargo in June. Capacity increased by 1.5% year-on-year.

Latin American carriers saw a 3.5% year-on-year increase in demand growth for air cargo in June. Capacity decreased by 0.4% year-on-year.

African airlines saw a 3.9% year-on-year increase in demand for air cargo in June. Capacity increased by 6.2% year-on-year.

Trade Lane Growth: Air freight volumes in June 2025 increased for major trade corridors from/within Europe and Middle East-Asia. However, other relevant trade routes from/within Asia and from North America have decreased significantly in the most recent month.

Trade Lane          YOY Growth       Notes    Market Share of Industry*

Asia-North America        -4.8%     7 consecutive months of decline               24.4%

Europe-Asia       +10.6% 28 consecutive months of growth            20.5%

Middle East-Europe        -4.5%     6 consecutive months of decline               5.7%

Middle East-Asia              +2.8%    4 consecutive months of growth               7.4%

Within Asia         +8.7%    20 consecutive months of growth            7.0%

North America-Europe  +4.8%    17 consecutive months of growth            13.3%

Africa-Asia          -4.8%     2 consecutive months of decline               1.4%

*Share is based on full-year 2024 CTKs.

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%.