Jet fuel costs have surged, pushing global air cargo rates higher despite stabilizing traffic, according to the American Journal of Transportation.
Global air freight traffic stabilized in late March, but jet fuel costs pushed rates higher, reported the American Journal of Transportation.
WorldACD data showed worldwide tonnage unchanged in week 13, with declines in four regions offset by small gains in Asia Pacific and Europe. Average global rates rose to US$2.98, a new high for 2026, though weekly momentum slowed to 5 percent. Jet fuel prices have more than doubled since the Iran war began in February, driving the increase.
Gulf airlines rebuilt capacity but remain constrained. Middle East and South Asia capacity rose 31 percent in the fortnight to March 29 but was still 33 percent below last year. Africa saw a 15 percent surge as Gulf carriers resumed services. Global volumes fell 6 percent year on year, with Central and South America being the only region showing growth.
Traffic from MESA to Europe dropped 11 percent week on week and 20 percent year on year, partly due to the Eid holiday. Dubai-Europe tonnage fell three percent week on week and 31 percent year on year. MESA-US flows also weakened, with Dubai down 44 percent and Bangladesh down 40 percent, though India rose 6 percent week on week and 7 percent year on year.
Despite weaker demand, spot rates kept rising. Dubai-Europe rates surged 28 percent week on week to US$5.44, up 84 percent year on year. Colombo-Europe rates doubled to US$4.77. MESA-US rates climbed nine percent week on week, with Dubai up 28 percent to US$10.33, 152 percent higher than a year ago.
Asia Pacific rates also rose. Spot prices to the US climbed nine percent week on week to US$5.91, with China and South Korea up 13 percent. Rates to Europe rose four percent week on week and 28 percent year on year, led by Indonesia's 115 percent surge. Analysts said the trend confirms that fuel costs are now the main driver of rate momentum.
