IATA Reports 3.9% Air Cargo Growth in July Amid Rising Fuel Costs

The International Air Transport Association (IATA) released data for July 2026 global air cargo markets showing total demand, measured in cargo ton-kilometers (CTK), increased by 3.9% compared to July 2025 (4.7% for international operations), and capacity, measured in available cargo ton-kilometers (ACTK), increased by 1.7% compared to July 2025 (1.8% for international operations). 

“Air cargo demand grew 3.9% year-on-year in July. While all regions recorded growth, airlines in Asia-Pacific, Europe and North America accounted for more than 90% of the overall increase. Dedicated freighters gained market share as belly-hold traffic declined, possibly reflecting demand for larger or specialist shipments and the operational flexibility that freighters can provide. Looking ahead, the outlook remains broadly positive, supported by manufacturing activity, export orders and global trade. However, higher fuel prices, geopolitical tensions and tariff uncertainty will need to be watched carefully,” says Marie Owens Thomsen, IATA’s SVP sustainability and chief economist.

Key takeaways:
 

• Global trade increased by 7.5% year-on-year.
• Jet fuel prices rose by 12.2% month-on-month in July and were 56.9% higher than a year earlier.
• Global manufacturing activity eased slightly in June but remained supportive, while export orders reached their highest level in three months. The Global Manufacturing Output Purchasing Managers’ Index (PMI) fell 0.3 points to 52.7, while the New Export Orders Index rose to 50. Together, these indicators remained broadly supportive of air cargo demand.
• North American carriers saw a 4.8% year-on-year increase in air cargo demand in July, the strongest performance of all regions. Capacity decreased by 1.5% year-on-year.
• Air cargo performance diverged across major trade lanes in July. Asia–North America recorded the strongest growth, followed by Europe–Asia, and Europe-North America. In contrast, Gulf-linked corridors remained disrupted by the conflict in the Middle East.