Air Freight Market Update
August 2025
What’s shaping Air Freight in 2025? Explore how various dynamics are impacting global Air Cargo.
Global Air Cargo Update
Global Air Cargo Demand
- Strongest monthly growth after April 2025; strong gains ex-Asia Pacific, Intra-AP and Europe
- Air freight demand and pricing will be shaped by global economic performance alongside geopolitical factors such as trade policies, tariffs, and tensions, which together influence trade flows and market stability
Global Air Cargo Capacity
- Regional tradelanes impacting the decline remain AP-AMNO and Intra-AP; growth observed for AP-EU and EU-AP
- Freighter capacity has been declining consistently since February 2025, with last 4 months showing double digit decline, whereas passenger capacity growing at 5% consistently
Regulation/News
- IATA has formally asked ICAO to raise the mandatory retirement age for pilots from 65 to 67, aiming to address increasing demand and pilot shortages. The proposal - allowing one pilot to exceed 65 if the other is younger- will be reviewed at ICAO's General Assembly on September 23, 2025
- Pharma ULD firm Envirotainer has invested in Swiss Airtainer, a provider of sustainable temperature-controlled air cargo containers, in an effort to accelerate pharmaceutical cold chain technology and services development.
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Regional Air Freight News
Europe
- Resilient cargo demand: Extra bellyhold capacity from summer travel, especially to SE Europe, and steady demand kept volumes strong (e.g., FRA +3.7% YoY to ~179k tonnes)
- Capacity shift: European carriers cut ~115k tonnes of freighter capacity in H1’25, but Asian carriers offset with +132k tonnes on NE Asia–Europe routes
Asia
- Mixed manufacturing outlook: July PMI weakened in East Asia (China, Korea, Japan) but improved in India and Southeast Asia, signaling stable yet flat regional demand growth
- Capacity dynamics: Bellyhold recovery is driving modest capacity increases, but freighter supply remains constrained by aircraft shortages and delivery delays
Middle East and Africa
- Despite softness, sector-specific demand is holding steady. Logistics players like Emirates, Etihad, and Qatar Airways are expanding services in pharmaceuticals, e-commerce, and temperature-controlled cargo
- Stabilization possible—but modest: anticipated demand may stabilize in Q3, with pharma and e-commerce driving recovery
Americas
- Canada disruptions: A flight attendants’ strike (Aug 16–19) led to 1,000+ cancellations, disrupting cargo and passenger services. AC Cargo mitigated impact with contingency freighter flights, though residual delays may persist
- Mexico weather impact: Severe heat, rains, and flooding continue to strain MEX passenger capacity with cancellations and rerouting. Freighter payloads from NLU remain stable and unaffected
Detailed Air Freight Market Update
Discover the latest trends, key market developments, and expert analyses that can impact your logistics strategy.
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