Global air cargo and passenger demand increased 3.9 per cent and 0.2 per cent, respectively year-on-year in July 2026, airlines in Asia-Pacific, Europe and North America accounting for more than 90 per cent of the overall growth.
The International Air Transport Association disclosed this in its latest global air cargo market data for July 2026. According to the association, total demand, measured in cargo tonne-kilometres, increased 3.9 per cent compared with July 2025, while international operations recorded stronger growth of 4.7 per cent.
Capacity, measured in available cargo tonne-kilometres, also rose 1.7 per cent year-on-year, while international capacity increased 1.8 per cent.
Commenting on the performance, IATA’s Senior Vice President, Sustainability and Chief Economist, Marie Thomsen, said the outlook for air cargo remained broadly positive despite rising fuel costs and geopolitical uncertainties.
She said, “Air cargo demand grew 3.9 per cent year-on-year in July. While all regions recorded growth, airlines in Asia-Pacific, Europe and North America accounted for more than 90 per cent of the overall increase. Dedicated freighters gained market share as belly-hold traffic declined, possibly reflecting demand for larger or specialist shipments and the operational flexibility that freighters can provide. Looking ahead, the outlook remains broadly positive, supported by manufacturing activity, export orders and global trade.
However, higher fuel prices, geopolitical tensions and tariff uncertainty will need to be watched carefully.”
The IATA data showed that global trade increased 7.5 per cent year-on-year, providing support for the growth in air cargo demand.
However, jet fuel prices rose 12.2 per cent month-on-month in July and were 56.9 per cent higher than a year earlier. The association said global manufacturing activity eased slightly in June but remained supportive of air cargo demand, while export orders reached their highest level in three months.
It said the Global Manufacturing Output Purchasing Managers’ Index fell by 0.3 points to 52.7, while the New Export Orders Index increased to 50.0.
“Together, these indicators remained broadly supportive of air cargo demand,” IATA stated.
By region, North American carriers recorded the strongest growth in air cargo demand, rising 4.8 per cent year-on-year in July.
However, capacity in the region declined 1.5 per cent during the period. European airlines recorded a 4.4 per cent increase in cargo demand, while capacity rose 1.3 per cent year-on-year.
Asia-Pacific airlines recorded a 4.1 per cent increase in air cargo demand, with capacity growing 3.0 per cent. Middle Eastern carriers recorded a 1.7 per cent year-on-year increase in demand, while capacity increased 4.0 per cent.
In Latin America and the Caribbean, airlines recorded a 4.1 per cent increase in cargo demand, while capacity climbed 7.0 per cent.
African airlines recorded the weakest regional performance, with cargo demand increasing 1.1 per cent year-on-year in July. Capacity among African carriers, however, increased 4.1 per cent. On trade lanes, IATA said air cargo performance varied across major routes during the month.
It said the Asia-North America corridor recorded the strongest growth, followed by Europe-Asia and Europe-North America. However, Gulf-linked corridors continued to experience disruptions due to the conflict in the Middle East.
The latest figures indicate continued growth in global air cargo demand despite rising operating costs and geopolitical challenges, with stronger trade, manufacturing activity and export orders supporting the market.
Global passenger demand for air travel rose despite declines recorded by airlines in North America and the Middle East.
According to IATA, total demand, measured in revenue passenger kilometres, increased 0.2 per cent compared with July 2025, while total capacity, measured in available seat kilometres, rose 0.3 per cent.
The global passenger load factor stood at 85.2 per cent, representing a 0.1 percentage point decline from the same period last year.
Commenting on the development, Thomsen, said the peak Northern summer travel season had produced a largely positive outcome despite economic and geopolitical challenges.
She said, “The peak Northern summer travel season is a mostly positive story for air travel. Overall growth of 0.2 per cent in July was achieved despite year-on-year collective declines by carriers in North America and the Middle East. Notably, traffic through the Gulf hubs continues its recovery trajectory. Although high fuel costs, economic uncertainty and geopolitical tensions continue, carriers are expressing confidence in demand for the last part of the year with an almost three per cent expansion of seat capacity in September.”
The association said international passenger demand fell 0.1 per cent year-on-year in July, while capacity increased 0.3 per cent and the load factor stood at 85.2 per cent, down 0.3 percentage points.
However, excluding Middle Eastern carriers, international demand grew 1.5 per cent. IATA said Asia-Pacific airlines recorded a 0.7 per cent decline in passenger demand compared with July 2025.
Capacity in the region also fell 1.7 per cent, while the load factor rose 0.9 percentage points to 84.5 per cent.
European carriers, however, recorded stronger growth, with demand increasing 3.1 per cent year-on-year and capacity rising 3.2 per cent. Their load factor stood at 87.1 per cent, representing a 0.1 percentage point decline.
Passenger traffic between Europe and Asia grew 12.1 per cent, making it the strongest expansion among the major international travel corridors during the period.
North American airlines recorded a 2.3 per cent year-on-year decline in passenger demand, while capacity fell by a similar 2.3 per cent. The region’s load factor remained unchanged at 88.2 per cent.
