Middle East Air Cargo Carriers See 15.3% Demand Growth in May

Middle Eastern carriers saw 15.3% year-on-year demand growth for air cargo in May with the Middle East–Europe market performing particularly well with 33.8% annual growth, ahead of Middle East-Asia which grew by 18.6% year-on-year. May capacity increased 2.7% year-on-year.

Global demand rose by 14.7% compared to May 2023 levels (15.5% for international operations). This is the sixth consecutive month of double-digit year-on-year growth. 

Capacity increased by 6.7% compared to May 2023 (10.2% for international operations). 

Willie Walsh, IATA Director General said: "Air cargo demand moved sharply upwards in May across all regions. The sector benefitted from trade growth, booming e-commerce and capacity constraints on maritime shipping.

"The outlook remains largely positive with purchasing managers showing expectations for future growth. Some dampening, however, could come as the US imposes stricter conditions on e-commerce deliveries from China.

"Increased costs and transit times for shipments under $800 may deter US consumers and pose significant challenges for growth on the Asia-North America trade lane—the world’s biggest.”

In May the Purchasing Managers Index for global manufacturing output and new export orders indicated expansion (52.6 and 50.4 respectively). 

Industrial production and global cross-border trade also increased month-on-month in April (0.5% and 1.5% respectively).

Read More: Air Cargo Spot Rates Hold Firm Thanks to Demand from Middle East and Asia