International air cargo demand saw a 3.9% year-on-year increase in July 2026, according to new data from the International Air Transport Association (IATA). Total demand, measured in cargo tonne-kilometers (CTK), grew 4.7% for international operations, while overall capacity, measured in available cargo tonne-kilometers (ACTK), rose 1.7% year-on-year, with international capacity up 1.8%.
Marie Owens Thomsen, IATA's Senior Vice President and Chief Economist, noted that demand growth was observed across all regions, with Asia-Pacific, Europe, and North America contributing over 90% of the additional demand. The decline in belly cargo capacity has increased the market share of freighter aircraft, potentially reflecting demand for larger or specialized shipments and the operational flexibility of dedicated cargo planes.
Looking ahead, the air cargo outlook remains broadly positive, underpinned by manufacturing activity, export orders, and global trade. However, rising fuel prices, geopolitical tensions, and tariff policy uncertainties warrant close monitoring. Several notable factors shaped the operating environment: global trade expanded 7.5% year-on-year, jet fuel prices climbed 12.2% month-on-month and stood 56.9% higher than the same time last year, and the global manufacturing output Purchasing Managers' Index (PMI) dipped 0.3 points to 52.7, while new export orders rose to 50.0.
Regional Performance Highlights
Asia-Pacific carriers recorded a 4.1% year-on-year increase in air cargo demand, with capacity growing 3.0%. North American airlines posted the strongest regional performance, with demand up 4.8% year-on-year, while capacity declined 1.5%. European carriers saw demand rise 4.4% year-on-year, accompanied by a 1.3% capacity increase.
Middle Eastern airlines experienced 1.7% demand growth year-on-year with capacity up 4.0%. Latin American and Caribbean carriers achieved 4.1% demand growth alongside a 7.0% capacity expansion. African airlines recorded the weakest performance, with demand growing just 1.1% year-on-year, while capacity increased 4.1%.
Trade Lane Dynamics
Performance varied across major trade routes in July. The Asia-North America corridor registered the strongest growth, followed by Europe-Asia and Europe-North America lanes. In contrast, trade routes connected to the Gulf region remained disrupted by ongoing Middle East conflicts.
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