THE International Air Transport Association (IATA) has downgraded its guidance for air cargo volumes and airline revenue as global tariffs roil freight markets, reports New York's FreightWaves.
The trade association said air cargo demand is now expected to grow 0.7 per cent year on year, with member airlines hauling 76 million tons versus the previous projection in December of 80 million tons.
In 2024, air cargo volume grew 12 per cent, an all-time high, based on an average of data sources. Six months ago, iata predicted cargo volume for passenger and all-cargo airlines would grow 5.8 per cent this year.
The US cancellation of the de minimis exemption, which allowed parcels valued below US$800 to enter the country without duty or complex customs procedures, for China and Hong Kong is also weighing down cargo volumes as e-commerce retailers shift from direct-to-consumer shipping to fulfilling orders from US warehouses stocked through less expensive ocean shipments.
Cargo revenues for member airlines are expected to decline 4.7 per cent to $142 billion as global economic growth slows due to the proliferation of tariffs and other protectionist measures that tend to constrain cross-border trade, IATA said.
IATA's December projection was for $157 billion in cargo revenue. The cargo yield is also expected to decline by 5.2 per cent, reflecting a combination of slower demand growth and lower oil prices. When jet fuel prices rise, airlines add fuel surcharges that typically include extra profit margin above the cost.
SeaNews Turkey
The trade association said air cargo demand is now expected to grow 0.7 per cent year on year, with member airlines hauling 76 million tons versus the previous projection in December of 80 million tons.
In 2024, air cargo volume grew 12 per cent, an all-time high, based on an average of data sources. Six months ago, iata predicted cargo volume for passenger and all-cargo airlines would grow 5.8 per cent this year.
The US cancellation of the de minimis exemption, which allowed parcels valued below US$800 to enter the country without duty or complex customs procedures, for China and Hong Kong is also weighing down cargo volumes as e-commerce retailers shift from direct-to-consumer shipping to fulfilling orders from US warehouses stocked through less expensive ocean shipments.
Cargo revenues for member airlines are expected to decline 4.7 per cent to $142 billion as global economic growth slows due to the proliferation of tariffs and other protectionist measures that tend to constrain cross-border trade, IATA said.
IATA's December projection was for $157 billion in cargo revenue. The cargo yield is also expected to decline by 5.2 per cent, reflecting a combination of slower demand growth and lower oil prices. When jet fuel prices rise, airlines add fuel surcharges that typically include extra profit margin above the cost.
SeaNews Turkey
