African Airlines’ Record of Cargo Demand Slumps to 13.4%, Lowest Across Regions

Chinedu Eze

African Airlines’ cargo demand has slumped to 13.4%, which is the lowest among the regions and a significant drop when compared to the same period last year.

This update was disclosed by the International Air Transport Association (IATA) for March 2025, noting that capacity however increased by 10.5% year-on-year. 

Globally, total demand, measured in cargo tonne-kilometers (CTK), increased by 4.4 percent compared to March 2024 levels (+5.5 percent for international operations), a historic peak for March.

Capacity, measured in available cargo tonne-kilometers (ACTK), expanded by 4.3 percent compared to March 2024 (+6.1 percent for international operations).

According to Willie Walsh, IATA’s Director General, “March cargo volumes were strong. It is possible that this is partly a front-loading of demand as some businesses tried to beat the well-telegraphed 2 April tariff announcement by the Trump Administration.

“The uncertainty over how much of the 2 April proposals will be implemented may eventually weigh on trade. In the meantime, the lower fuel costs – which are also a result of the same uncertainty – are a short-term positive factor for air cargo.

“And within the temporary pause on implementation we hope that political leaders will be able to shift trade tensions to reliable agreements that can restore confidence in global supply chains.”

IATA explained that March volumes typically rise after a lull in February, and this single-digit increase is in line with pre-COVID growth trends.

Also, jet fuel prices dropped 17.3 percent year-on-year, marking nine straight months of year-on-year declines.

The global body indicated the sharp rise in US tariffs and new trade rules, especially the 2 May ban on duty-free imports from China and Hong Kong, may have prompted companies and buyers to make purchases in advance to avoid significant import fees. 

According to IATA, world industrial output grew 3.2 percent year-on-year, and trade volumes expanded 2.9 per cent. Many key Consumer Price Inflation (CPI) indices fell: US inflation was 2.4 percent, down 0.4 points from February, EU CPI was 2.5 percent and Japan’s rate fell 0.1 percent to 3.6 percent. China remains in deflation but this eased to -0.1 percent.

Asia-Pacific airlines saw 9.6 percent year-on-year demand growth for air cargo in March, the strongest growth among the regions. Capacity increased by 11.3 percent year-on-year.

North American carriers saw a 9.5 percent year-on-year increase in demand growth for air cargo in March. Capacity increased by 6.1 percent year-on-year.

European carriers recorded a 4.5 percent year-on-year increase in demand growth for air cargo in March. Capacity increased 2.0 percent year-on-year.

Middle Eastern carriers saw a -3.2 percent year-on-year decrease in demand growth for air cargo in March. Capacity increased by 0.8 percent year-on-year.

It’s possible the weakness in this market is due to year-on-year comparison with the strong growth at the start of 2024 resulting from disruption to Red Sea maritime freight.

Latin American carriers recorded 5.8 percent year-on-year demand growth for air cargo in March. Capacity increased 4.7 percent year-on-year.