Global air cargo demand rose 4.1 per cent year-on-year in August, marking the sixth consecutive month of growth, according to the International Air Transport Association (IATA). The increase was driven by modal shifts from sea to air and trade route diversions away from North America, reported London's Air Cargo News.

Capacity rose 3.7 per cent compared to August 2024, lifting the load factor by 0.2 percentage points to 44.2 per cent. IATA said cargo demand remains resilient despite global economic challenges.

Director General Willie Walsh said shippers are shifting high-value goods to air to avoid tariff risks, fuelling growth on Europe-Asia, Within Asia, Africa-Asia and Middle East-Asia lanes.

The global goods trade rose 5.4 per cent in July, while manufacturing optimism rebounded in August with a PMI of 51.75. However, export order sentiment remained cautious at 48.73.

Jet fuel prices in August were 6.4 per cent lower year-on-year, continuing a 14-month decline and offering cost relief to carriers.

African airlines led regional growth with an 11 per cent rise in demand and a 12.3 per cent increase in capacity. Asia Pacific carriers followed with 9.8 per cent demand growth and 6.9 per cent more capacity.

European carriers posted a 3.2 per cent demand increase, Middle Eastern carriers rose 2.7 per cent, and Latin American carriers gained 2.1 per cent. North American carriers saw a 2.1 per cent decline in demand and a 1 per cent drop in capacity.

Trade corridors showed mixed performance. Europe-Asia and Within Asia posted strong double-digit growth, while Middle East-Asia, North America-Europe and Africa-Asia saw notable gains. Asia-North America, Middle East-Europe and Within Europe recorded declines.