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

•    Total demand, measured in cargo tonne-kilometers (CTK), rose by 2.2% compared to May 2024 levels (+3.0% for international operations). 

•    Capacity, measured in available cargo tonne-kilometers (ACTK), increased by 2.0% compared to May 2024 (+2.6% for international operations). 

Several factors in the operating environment should be noted:

•    Year-on-year, world industrial production rose 2.6% in April 2025. Air cargo volumes grew 6.8% over the same period, outpacing global goods trade growth of 3.8%.

•    Jet fuel prices in May 2025 were 18.8% lower than the previous year and 4.3% below the previous month. 

•    Global manufacturing contracted in May, with the PMI 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.

Trade Lane Growth: A significant decrease in the Asia-North America trade lane was expected and realized as the effect of front-loading faded (moving goods to market in advance of tariffs coming into effect) and changes to the de-minimis exemption on small package shipments (particularly those associated with e-commerce) were enforced. As cargo flows reorganized, several route areas responded with surprising growth.