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Asia-Pacific airlines saw 9.6% YOY demand growth for air cargo in March: IATA
Representative Image The International Air Transport Association (IATA) released data for March 2025 global air cargo markets showing that the total demand, measured in cargo tonne-kilometers (CTK), increased by 4.4% compared to March 2024 levels (+5.5% for international operations), a historic peak for March. Capacity, measured in available cargo tonne-kilometers (ACTK), expanded by 4.3% compared to March 2024 (+6.1% for international operations). “March cargo volumes were strong. It is possible that this is partly a front-loading of demand as some businesses tried to beat the well-telegraphed 2 April tariff announcement by the Trump Administration. The uncertainty over how much of the 2 April proposals will be implemented may eventually weigh on trade. In the meantime, the lower fuel costs—which are also a result of the same uncertainty—are a short-term positive factor for air cargo. And, within the temporary pause on implementation we hope that political leaders will be able to shift trade tensions to reliable agreements that can restore confidence in global supply chains,” said Willie Walsh, IATA’s Director General. Several factors in the operating environment should be noted: March volumes typically rise after a lull in February, and this single-digit increase is in line with pre-COVID growth trends. Jet fuel prices dropped 17.3% year-on-year, marking nine straight months of year-on-year declines. The sharp rise in US tariffs and new trade rules, especially the 2 May ban on duty-free imports from China and Hong Kong, may have prompted companies and buyers to make purchases in advance to avoid significant import fees. World industrial output grew 3.2% year-on-year, and trade volumes expanded 2.9%. Many key Consumer Price Inflation (CPI) indices fell: US inflation was 2.4%, down 0.4 points from February, EU CPI was 2.5% and Japan’s rate fell 0.1% to 3.6%. China remains in deflation but this eased to -0.1%. Air cargo market in detail - March 2025 World March 2025 (% year-on-year) share1 CTK ACTK CLF (%-pt) CLF (level) TOTAL MARKET 100.0% 4.4% 4.3% 0.0% 47.5% Africa 2.0% -13.4% 10.8% -10.4% 37.1% Asia Pacific 34.2% 9.3% 7.6% 0.8% 48.6% Europe 21.5% 4.4% 2.8% 0.9% 59.6% Latin America 2.9% 5.6% 5.2% 0.1% 39.5% Middle East 13.6% -3.3% 0.9% -2.0% 47.6% North America 25.8% 3.7% 2.6% 0.5% 40.7% Note 1: % of industry CTK in 2024 March Regional Performance Asia-Pacific airlines saw 9.6% year-on-year demand growth for air cargo in March, the strongest growth among the regions. Capacity increased by 11.3% year-on-year. North American carriers saw a 9.5% year-on-year increase in demand growth for air cargo in March. Capacity increased by 6.1% year-on-year. European carriers saw a 4.5% year-on-year increase in demand growth for air cargo in March. Capacity increased 2.0% year-on-year. Middle Eastern carriers saw a -3.2% year-on-year decrease in demand growth for air cargo in March. Capacity increased by 0.8% year-on-year. It’s possible the weakness in this market is due to year-on-year comparison with the strong growth at the start of 2024 resulting from disruption to Red Sea maritime freight. Latin American carriers saw 5.8% year-on-year demand growth for air cargo in March. Capacity increased 4.7% year-on-year. African airlines saw a -13.4% year-on-year decrease in demand for air cargo in March, the slowest among the regions. Capacity increased by 10.5% year-on-year. Trade Lane Growth: The Europe-North America route was the busiest trade lane in March. The largest trade lane by market share, Asia-North America, also grew strongly, possibly encouraged by front-loading shipments ahead of potential increased tariffs. Europe-Middle East and Africa-Asia were the only trade lanes to decline in March. Trade Lane YOY Growth Notes Market Share of Industry Asia-North America +7.3% This route has resumed growth after a revised fall of 0.5% in February 24.4% Europe-Asia +8.3% 25 consecutive months of growth 20.5% Europe-Middle East -7.5% N/A 5.7% Middle East-Asia +2.9% N/A 7.3% Within Asia +5.5% 17 consecutive months of growth 7.0% Europe-North America +8.5% 14 consecutive months of growth 13.3% Africa-Asia -40.2% 4 consecutive months of decline 1.4% Within Europe -5.2% N/A 2.0%
IATA: global air cargo demand up 4.4 percent in March
The International Air Transport Association (IATA) released data for March 2025 global air cargo markets on Tuesday, 29th April. The latest report shows that total demand, measured in cargo tonne-kilometers (CTK), rose by 4.4 percent compared to the total reported in March 2024. The March 2025 result was also noted as a historic peak for March in the global air cargo sector. At the same time, capacity, as measured in available cargo tonne-kilometers (ACTK), expanded by 4.3 percent compared to the same month last year. IATA director-general Willie Walsh said: “March cargo volumes were strong. It is possible that this is partly a front-loading of demand as some businesses tried to beat the well-telegraphed 2nd April tariff announcement by the Trump Administration. The uncertainty over how much of the 2nd April proposals will be implemented may eventually weigh on trade.” Walsh further pointed out that, for now, lower fuel costs which were driven by the same uncertainty are to be construed as a short-term positive factor for air cargo. Walsh added: “Within the temporary pause on implementation we hope that political leaders will be able to shift trade tensions to reliable agreements that can restore confidence in global supply chains.” Factors to consider Several factors in the operating environment should be noted; these include: March volumes typically rise after a lull in February, and this single-digit increase is in line with pre-COVID growth trends. Jet fuel prices dropped 17.3 percent year-on-year, marking nine straight months of year-on-year declines. The sharp rise in US tariffs and new trade rules, especially the ban on duty-free imports from China and Hong Kong beginning 2nd May, may have prompted companies and buyers to make purchases in advance to avoid significant import fees. World industrial output grew 3.2 percent year-on-year, and trade volumes expanded 2.9 percent. Many key Consumer Price Inflation (CPI) indices fell: US inflation was 2.4%, down 0.4 points from February, EU CPI was 2.5 percent and Japan’s rate fell to 3.6 percent. China remains in deflation but this eased to -0.1 percent. Global performance per region for March 2025 Asia-Pacific airlines saw 9.6 percent year-on-year demand growth for air cargo in March, the strongest growth among the regions. Capacity increased by 11.3 percent year-on-year. North American carriers saw a 9.5 percent year-on-year increase in demand growth for air cargo in March. Capacity increased by 6.1 percent year-on-year. European carriers saw a 4.5 percent year-on-year increase in demand growth for air cargo in March. Capacity increased 2 percent year-on-year. Middle Eastern carriers saw a -3.2 percent year-on-year decrease in demand growth for air cargo in March. Capacity increased by 0.8 percent year-on-year. It’s possible the weakness in this market is due to year-on-year comparison with the strong growth at the start of 2024 resulting from disruption to Red Sea maritime freight. Latin American carriers saw 5.8 percent year-on-year demand growth for air cargo in March. Capacity increased 4.7 percent year-on-year. African airlines saw a -13.4 percent year-on-year decrease in demand for air cargo in March, the slowest among the regions. Capacity increased by 10.5 percent year-on-year. With regard to trade lane growth, the Europe-North America route was the busiest trade lane in March. The largest trade lane by market share, Asia-North America, also grew strongly, possibly encouraged by front-loading shipments ahead of potential increased tariffs. Europe-Middle East and Africa-Asia were the only trade lanes to decline in March.
Hong Kong International Airport named world’s busiest cargo airport for the 14th time since 2010
Cathay Cargo congratulates Hong Kong International Airport (HKIA) for being named the world's busiest cargo airport according to Airports Council International for the 14th time since 2010. This remarkable achievement underscores HKIA's pivotal role in global air cargo, and Cathay Cargo is honoured to have contributed to this success. Cathay Director Cargo Tom Owen said: "That Hong Kong has once again been named number one in the world for air cargo is an outstanding achievement and one that stands as testament to the cooperation, innovation and world-leading facilities that our home hub has to offer. As the largest cargo operator at HKIA, we are proud to be part of this success story. “We won’t rest on our laurels, however, and our investments into our fleet, network, facilities and digital capabilities reflect not only our commitment to, but also our confidence in the long-term future of the Hong Kong international aviation and logistics hub. We look forward to continuing to work together with the entire air cargo community, including the Transport and Logistics Bureau, Civil Aviation Department, Airport Authority Hong Kong and other important stakeholders, to innovate and ensure HKIA maintains its position as the world’s best and busiest air cargo hub." Cathay Cargo is among the top 10 cargo carriers in the world based on scheduled cargo tonne kilometres (CTK), and number five as a combination airline, according to the latest International Air Transport Association (IATA) 2023 World Air Transport Statistics. In 2024, Cathay Cargo carried a total of 1.5 million tonnes of cargo, 11% more than the previous year, and representing around 31% of the total cargo volume handled by HKIA. Cathay Cargo provides scheduled freighter services to more than 40 destinations worldwide in addition to utilising belly space on the Cathay Group's passenger aircraft across its extensive global network. With its deep roots in Hong Kong, Cathay is firmly committed to the continued growth of the Hong Kong international aviation and logistics hub, with more than HK$100 billion in investments coinciding with the commissioning of the Three-Runway System. As part of this investment, the Cathay Group has commenced taking delivery of over 100 new-generation passenger and freighter aircraft that will join its fleet in the coming years. This includes six new Airbus A350F freighter aircraft, with the option to acquire an additional 20 in the future, which will enhance Cathay Cargo's fleet capabilities. Last month, Cathay Cargo was named Cargo Operator of the Year by Air Transport World, further solidifying Hong Kong’s leadership in the industry.
IATA cites importance of air cargo in global supply chain resilience
The International Air Transport Association (IATA) emphasised the vital role of air cargo in maintaining global supply chain resilience at the opening of its 18th World Cargo Symposium (WCS) today in Dubai, UAE. The Association called on governments and industry to remain focused on delivering the fundamental expectations of customers; namely safety and security, digitalization and sustainability. In his opening remarks, IATA global head of cargo Brendan Sullivan declared: “Whether supporting global trade, enabling e-commerce, or delivering vital humanitarian aid, the value of air cargo has never been clearer. To meet customer expectations and navigate an increasingly complex environment, the air cargo industry must continuously strengthen safety and security, fast-track digitalization, and deliver on its sustainability commitments.” Safety calls for a zero-tolerance policy for rogue shippers Safety is the top priority for air transport and in the case of air cargo the specific focus is on the safe transport of lithium batteries. Thus, IATA calls on governments to step up efforts to stop rogue shippers and support ICAO’s work to strengthen Annex 18 of the Chicago Convention, the global framework for the safe transport of dangerous goods by air. Sullivan said of this: “Shipments of lithium batteries are growing in volume. With that come increased risks associated with undeclared or mis-declared goods. The industry has invested in training, certification, and technology. Governments must match that commitment with robust oversight and enforcement.” Coordinated, risk-based measures are needed to boost security IATA reinforced calls to governments for a coordinated, risk-based approach to air cargo security following recent incidents involving incendiary devices concealed in shipments. While some states implemented new measures, the lack of alignment led to inconsistent outcomes. This situation reinforces the importance of harmonized responses based on global standards. Sullivan opined: “Recent security incidents highlight the need for better coordination among governments. Aviation security cannot be built on fragmented or reactionary measures. Global standards and cooperation are essential.” IATA also renewed its call to states to fulfill their Annex 17 obligations by sharing timely and accurate threat intelligence to enable informed risk assessments and operational decisions. Sullivan added: “The industry is best placed to understand its operations and the associated safety and security risks. But governments have infinitely more resources, particularly in intelligence gathering. The best results come when governments and industry work together.” Fast-tracking the adoption of ONE Record throughout the industry IATA reinforced the central role of ONE Record as the industry’s standard for end-to-end digital data exchange, supporting improved efficiency, compliance, and transparency. The industry’s goal is clear: by January 2026, ONE Record will become the preferred method of sharing data. To accelerate industry adoption IATA urged: Airlines and forwarders to move forward with implementation Governments to recognize ONE Record in regulatory data filing requirements Developers to build secure, open, and compatible digital platforms Sullivan said: “ONE Record is a foundational shift in how we share, manage, and trust data across the supply chain. Airlines representing 72 percent of global air waybill volume are on track to implement it. More than 100 IT providers and 10,000 freight forwarders are already aligned. To achieve full value, implementation must accelerate across all stakeholders, and governments must recognize ONE Record in their regulatory frameworks. SAF support and strong commitment are keys to sustainability The air cargo industry continues to embed sustainability into its operations, with growing efforts to reduce waste, implement circular practices, and phase out single-use plastics. For example, IATA guidance to eliminate single-use plastics across the cargo supply chain is now reflected in operational standards. Progress is also being made on the sector’s largest environmental challenge: reducing carbon emissions. Momentum around Sustainable Aviation Fuel (SAF) is growing, with new agreements across the value chain and more companies committing to SAF use. The SAF Registry, recently launched and operated by CADO, is designed to enable a global market for Sustainable Aviation Fuel (SAF) and accelerate the industry's transition to net-zero emissions by 2050. In addition, IATA will soon launch CO2 Connect for Cargo to support accurate emissions calculation and reporting, including SAF usage. However, SAF volumes remain far below what is needed, and production costs remain high. IATA urged governments to implement policy frameworks to scale up SAF production and reduce costs. Sullivan declared: “We are committed to net zero carbon emissions by 2050. But the ramp-up of SAF, our strongest lever, has been disappointing. The major fuel producers have been sidelining planned investments in SAF. Aircraft manufacturers have backed off their commitments for medium-term delivery of CO2 saving products such as hydrogen-powered aircraft. And governments have not provided the policy support needed, even though they have a playbook at hand with how the wind and solar energy industries expanded. Instead, they send mixed signals by subsidizing fossil fuel extraction while aiming for net zero. Airlines are committed and determined but we cannot do it alone. We need action behind the words of regulators, fuel suppliers and manufacturers. Likewise, despite growing trade tensions, IATA reinforced its position that trade drives prosperity, and that any measures undermining the free flow of goods ultimately hurt businesses, consumers, and economies. As Sullivan puts it: “Current trade tensions are deeply concerning. Trade drives prosperity. The more the world trades, the better off we all are. So, whatever the resolution of current trade tensions is, we know that air cargo will be there to deliver the goods people need and want.”
Republic Airways merges with Mesa Air Group
Republic Airways Holdings Inc. and Mesa Air Group, Inc. announced that they have entered into a definitive agreement to merge and create a leading publicly-traded regional airline company in an all-stock transaction. Upon closing, the combined company will be renamed Republic Airways Holdings Inc. and is expected to remain NASDAQ-listed under the new ticker symbol “RJET”. “The announcement is an exciting next step in Mesa’s more than 40-year history, one that represents the best outcome for our shareholders, employees, and all of our stakeholders,” said Jonathan Ornstein, Mesa’s Chairman and Chief Executive Officer. “By bringing the best of our organizations together, we will create a regional carrier that continues to connect communities across America while providing advancement opportunities to our employees.” “We’re thrilled to combine the Republic and Mesa teams to create one of the world’s leading Embraer Jet operators,” said Bryan Bedford, Republic’s President and Chief Executive Officer. “Republic and Mesa share a common mission to connect communities across America, and we believe that we can better achieve that mission together. With this combination, we are establishing a single, well-capitalized, public company that will benefit from the deep expertise of Republic and Mesa associates, creating value for all stakeholders well into the future.” Republic Airways Overview Republic Airways has been a leading regional airline since its inception in 1974 and is now one of the largest regional airlines in the United States. Republic has a fleet of more than 240 Embraer 170/175 aircraft and carried approximately 17.5 million passengers on more than 300,000 flights and 591,000 block hours in 2024. The airline primarily serves Northeast and Mid-Atlantic hubs and operates exclusively under long-term capacity purchase agreements with American Airlines, Delta Air Lines and United Airlines. In 2024, Republic delivered strong financial performance, producing net income of approximately $65 million on total revenues of approximately $1.5 billion. During the year then ended, Republic generated total operating expenses of approximately $1.3 billion, of which approximately $117 million is non-cash depreciation and amortization expense, other net non-operating expenses (primarily interest expense) of approximately $50 million, and income tax expense of approximately $22 million, resulting in EBITDA performance of approximately $254 million and pre-tax income of approximately $87 million. As of December 31, 2024, Republic’s cash and debt balances were $323 million and $1 billion, respectively, resulting in net leverage of approximately 2.7x. Republic expects to take delivery of 15 new E175 aircraft during 2025 and all of the deliveries are expected to be debt financed. Compelling Strategic Rationale Economies of Scale: The proposed combination represents a transformational opportunity to significantly enhance the scale of the combined airlines, both financially, and operationally, with a larger, unified fleet. This will enable more efficient and productive regional flying and crew resource management. The enhanced platform is well positioned for a valuation uplift, supported by a stronger financial profile, increased relevance among global institutional investors, and improved access to capital markets. Enhanced Capital and Liquidity Position: Pro forma net leverage at close is expected to be approximately 2.5x and liquidity as a percent of pro forma revenues is expected to be greater than 15%. Together, the combined company will have the financial strength and flexibility to make critical investments, drive sustained profitability, and continue delivering best-in-class customer service under a unified brand. A stronger balance sheet for the combined airline will bolster the Company’s ability to navigate market cycles, respond to strategic opportunities, and maintain a flexible capital allocation strategy that optimizes returns for all stakeholders. Complementary Networks and Operations: The proposed combination represents a unique opportunity to bring together Mesa’s and Republic’s networks to establish America’s regional airline of choice. The post-merger company will maintain a single fleet of approximately 310 Embraer 170/175 (“E-Jet”) aircraft, with over 1,250 daily departures, across both airlines’ existing flying networks and will operate within Mesa’s and Republic’s current basing structures and routes. Mesa and Republic will continue to operate under their existing Federal Aviation Administration (FAA) operating certificates until securing a single-operating certificate for the combined airline. Synergistic Cultures Rooted in Safety and Reliability: Mesa and Republic share common values and principles, which include an uncompromising focus on providing safe and reliable services for passengers, operational excellence, and a culture which provides career growth and advancement opportunities for associates. Both Mesa and Republic are included in the International Air Transport Association’s Operational Safety Audit (IOSA) registry, the internationally recognized standard for airline safety and operational excellence. These principles will be maintained and enhanced by the merger. Talented Team Positioned for Exciting Growth Opportunities: The combined company will continue serving key partners, including American Airlines, Delta Air Lines, and United Airlines. The parties expect to retain all flight crews, technicians, and other operational staff within the post-merger entity, which will be led by an experienced and seasoned management team.
Philippine Airlines presents 2024 annual report
Philippine Airlines (PAL) affirmed the continued progress of its corporate transformation journey as it released its annual financials for 2024. The Philippine national flag-carrier ended the year with a net income of US$151.1 million, achieving a five-percent net margin that outpaced the global airline industry average of three percent, as tracked by the International Air Transport Association (IATA). The fourth quarter of 2024 showed an eight-percent increase in system-wide revenues to US$790.2 million, versus the US$733 million reported in the third quarter, even as operating income and net income increased by 296 percent and 19 percent respectively. This marks PAL's 13th straight profitable quarter that reflects disciplined cost management, sustained passenger demand, and strategic network expansion, reinforcing its position as one of the region’s most resilient full-service air carriers. Solid performance According to airline president and chief operating officer Stanley K Ng: “We are very pleased with the solid financial performance achieved by the Philippine Airlines team, an outcome of greater operational efficiency, improved schedule reliability, and more consistent service across our global network. In 2024, PAL operated five percent more flights while improving on-time-performance by two percent and schedule reliability by four percent.” Ng added that these gains contributed to a significant increase in customer satisfaction (CSAT) scores, which rose to 73 percent, and net promoter scores (NPS), which reached +43, both ranking among the strongest results the airline has delivered to date. Likewise, PAL carried 15.6 million passengers in 2024, six percent higher than in 2023, while mounting a total of 110,867 flights system-wide. This shows an increase of around five percent from the 105,294 flights operated in 2023. The calibrated expansion of PAL’s network included the launching of Manila-Seattle nonstop flights last October, PAL’s first new US route in nine years, along with progressive increases in frequencies on various international and domestic routes. The incremental growth in passenger carriages and solid financial performance came despite a general moderation of growth rates, inflationary strains and increased competition that put pressure on yields. PAL generated revenues of US$3.13 billion, down by four percent from the US$3.25 billion recorded in 2023. Passenger revenues declined by six percent from US$2.87 billion to US$2.70 billion, while cargo and ancillary revenues registered a healthy increase of 12 percent and 16 percent, respectively. Total operating expenses rose by three percent to US$2.82 billion due to higher lease costs and airport charges, although these were offset by lower fuel expenses and more effective cost-management measures. Fuel remains the largest cost item, representing 31 percent of revenues. Operating income at year’s end was at US$314.4 million, around 37 percent lower than the 2023 total and is proof of overall market moderation. Earnings before interest, taxes, depreciation and amortization (EBITDA) were at US$614.4 million at end-2024.
IATA calls for changes to NZ Economic Regulatory Framework for Airports
The International Air Transport Association (IATA) called for urgent changes to New Zealand’s Economic Regulatory Framework for Airports. IATA’s call comes in the wake of the recent publication of the New Zealand Commerce Commission’s review of Auckland Airport’s Price Setting Event 4. IATA’s ad interim regional vice-president for North Asia and the Asia Pacific Dr Xie Xingquan said: “It is not surprising that the Commerce Commission has concluded that Auckland Airport’s charges are excessive in the range of NZ$150 million to NZ$226 million. While the airport has responded by lowering its charges over the next two years in response to the review, the process does highlight that the economic regulatory framework in its current form is not fit-for-purpose and change is urgently needed.” Concerns to take into consideration IATA pointed out that the current light-touch regulatory approach means Auckland Airport can set the aeronautical pricing as they wish. Auckland Airport, being the sole monopoly provider, can game the regulatory process by setting their pricing artificially high at the start of the regulatory process, and then respond, if they so wish, by lowering their pricing following the conclusion by the regulator or to ignore the report. While Auckland Airport is investing significantly in infrastructure, there are outstanding concerns highlighted by airlines about the size, phasing, cost allocation and affordability of these major investments. Experts note that some of these costs could have been avoided if infrastructure planning and investments had been managed appropriately in the past. Also, non-aeronautical activities, which generally draw much higher returns, are excluded from the purview of the Commerce Commission. According to Xie: “Aviation is a key economic sector for New Zealand, supporting 5.6 percent of the country’s GDP and 177,000 jobs. The delivery of demand driven, functional and cost-effective infrastructure will support the continued development of New Zealand’s aviation sector. The current consultation process with Auckland Airport is ineffective and may not deliver outcomes that are in the best interests of passengers. This needs to change.”
IATA: air cargo demand slightly lower in February 2025
The International Air Transport Association (IATA) released its global air cargo market figures for February 2025 global air cargo markets. The report showed how total demand, measured in cargo tonne-kilometers (CTK), declined by 0.1 percent compared to February 2024 levels, marking the first decline since mid-2023. Consequently, capacity, measured in available cargo tonne-kilometers (ACTK), decreased by 0.4 percent compared to February 2024. IATA director-general Willie Walsh said: “February saw a small contraction in air cargo demand, the first year-on-year decline since mid-2023. Much of this is explained by February 2024 being extraordinary: a leap year that was also boosted by Chinese New Year traffic, sea lane closures and a boom in e-commerce. Rising trade tensions are, of course, a concern for air cargo. With equity markets already showing their discomfort, we urge governments to focus on dialogue over tariffs.” Mitigating factors In order to understand why cargo figures declined in the second month of the year, it should be noted that there was a 3.2 percent year-on-year increase in the industrial production index in January, registering the highest growth in two years. As world trade expanded by five percent, the cost of jet fuel prices likewise averaged $94.6 a barrel in February, 2.1 lower than it was the month before. In February, the Purchasing Managers Index (PMI) for global manufacturing output showed growth as it was above the 50-mark at 51.5. The PMI for new export orders rose slightly to 49.60 from the previous month, remaining just shy of the 50-mark, which is the growth threshold. However, consumer inflation remained elevated in the US, Europe, and Japan, easing only slightly from the previous month. In contrast, China recorded its first decline in consumer prices in 11 months, reinforcing signs of persistent deflationary pressure in the economy.
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