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On Sept. 29, the International Air Transport Association (IATA) reported that global air cargo demand grew 4.4% year over year in August, with every region posting gains while capacity slipped 0.1%. Yields rose month over month for the first time since April, and Asia-North America led all trade lanes with double-digit growth.
August air cargo demand by region and lane
Measured in cargo tonne-kilometers (CTK), total demand rose 4.4% versus August 2025 and international demand rose 5.3%, according to the IATA release. Available capacity (ACTK) fell 0.1%, which pushed the global cargo load factor up 2.0 points to 46.0%. IATA credited the load factor gain to capacity cuts at North American and European carriers that outweighed added lift elsewhere, as Air Cargo News reported.
North American carriers posted the strongest regional result, with demand up 6.6% on capacity that fell 2.5%. Latin American and Caribbean airlines followed at 5.1%, then Asia-Pacific at 4.3%, Europe at 4.1%, Africa at 3.0% and the Middle East at 1.0%, the weakest of the group. African carriers added 14.0% more capacity, far ahead of their demand growth.
By trade lane, Asia-North America grew 13.2%, its seventh straight month of growth, and it now represents 23.5% of industry traffic on IATA’s 2025 share basis. Within-Asia traffic rose 6.1%, Europe-North America 4.3% and Europe-Asia 3.1%. The steepest declines were on Europe-Middle East, down 12.1%, Africa-Asia, down 11.9%, and Middle East-Asia, down 11.0%. IATA said the Middle East conflict continued to disrupt Gulf-linked corridors.
Fuel costs and trade backdrop
Fuel stayed the main cost pressure. Jet fuel cost 8.3% more in August than in July and 79.2% more than in August 2025, IATA said. Marie Owens Thomsen, IATA’s chief economist and senior vice president for sustainability, said strong demand and higher load factors “helped airlines to recoup some of the exceptionally high fuel costs.”
The wider trade picture remained supportive. Global goods trade grew 6.0% year over year in July, a 33rd consecutive month of expansion, and the manufacturing output PMI rose 0.3 points to 53.0 in August. The new export orders index climbed 1.4 points to 51.4, and IATA said both readings still supported air cargo demand.
What it means for shippers
Tighter load factors and rising yields suggest less spare capacity heading into the year-end peak, particularly on Asia-North America, where growth is strongest. Shippers with holiday or year-end freight on that lane should confirm space and rates earlier than usual and plan for fuel-related charges that reflect jet fuel prices far above last year’s levels.
For freight that can tolerate longer transit, comparing modes is worth doing before peak pricing sets in; our air freight vs. ocean freight decision framework lays out the cost and transit trade-offs. Shippers on Gulf-linked routings should plan for continued irregular capacity.
