2025-10-02
Persistent Global Growth; Air Passenger and Cargo Segments See Renewed Economic Momentum
Despite economic uncertainties and geopolitical tensions, the global growth trend in air transport has shown no signs of abating.
For instance, the October air passenger schedules indicate that airlines are planning 3.4% more capacity, globally.
Air cargo volumes also continue to grow even as global trade patterns change. Air cargo has benefitted from a shift from sea for some high value goods as shippers try to minimise the risk of tariff changes, data released by International Air Transport Association (IATA) has shown.
Total air passenger transport demand (in August), measured in revenue passenger kilometres (RPK), was up 4.6% compared to August 2024.
Total capacity, measured in available seat kilometres (ASK), was up 4.5% year-on-year. The August load factor was 86% (+0.1 ppt compared to August 2024), a record high for the month.
International demand rose 6.6% compared to August 2024. Capacity was up 6.5% year-on-year, and the load factor was 85.8% (+0.1 ppt compared to August 2024).
Domestic demand increased 1.5% compared to August 2024. Capacity was up 1.3% year-on-year. The load factor was 86.3% (+0.1 ppt compared to August 2024).
IATA’s Director General Willie Walsh noted: “August year-on-year demand growth of 4.6% confirms that the 2025 peak northern summer travel season reached a new record high. Moreover, planes were operating with more seats filled than ever with a record load factor of 86%.
“Despite economic uncertainties and geopolitical tensions, the global growth trend shows no signs of abating, as October schedules are showing airlines planning 3.4% more capacity. Airlines are doing their best to meet travel demand by maximising efficiency, making it even more critical for the aerospace manufacturing sector to sort out its supply chain challenges.”
Unpacking details vis-à-vis the air cargo segment, IATA said several factors in the operating environment should be noted,
First, the global goods trade grew by 4% year-on-year in July.
Second, jet fuel prices in August were 6.4% lower year-on-year, marking the fourteenth consecutive month of year-on-year declines.
Also, global manufacturing in August showed rising optimism in manufacturing PMI, with a rebound to 51.75, the strongest reading since June 2024.
Sentiment on new export orders, however, remains below 50 at 48.73, reflecting persistent caution amid tariff uncertainty.
Trade lane growth indicate air freight volumes in August 2025 increased significantly across most major trade corridors.
For instance, the October air passenger schedules indicate that airlines are planning 3.4% more capacity, globally.
Air cargo volumes also continue to grow even as global trade patterns change. Air cargo has benefitted from a shift from sea for some high value goods as shippers try to minimise the risk of tariff changes, data released by International Air Transport Association (IATA) has shown.
Total air passenger transport demand (in August), measured in revenue passenger kilometres (RPK), was up 4.6% compared to August 2024.
Total capacity, measured in available seat kilometres (ASK), was up 4.5% year-on-year. The August load factor was 86% (+0.1 ppt compared to August 2024), a record high for the month.
International demand rose 6.6% compared to August 2024. Capacity was up 6.5% year-on-year, and the load factor was 85.8% (+0.1 ppt compared to August 2024).
Domestic demand increased 1.5% compared to August 2024. Capacity was up 1.3% year-on-year. The load factor was 86.3% (+0.1 ppt compared to August 2024).
IATA’s Director General Willie Walsh noted: “August year-on-year demand growth of 4.6% confirms that the 2025 peak northern summer travel season reached a new record high. Moreover, planes were operating with more seats filled than ever with a record load factor of 86%.
“Despite economic uncertainties and geopolitical tensions, the global growth trend shows no signs of abating, as October schedules are showing airlines planning 3.4% more capacity. Airlines are doing their best to meet travel demand by maximising efficiency, making it even more critical for the aerospace manufacturing sector to sort out its supply chain challenges.”
Unpacking details vis-à-vis the air cargo segment, IATA said several factors in the operating environment should be noted,
First, the global goods trade grew by 4% year-on-year in July.
Second, jet fuel prices in August were 6.4% lower year-on-year, marking the fourteenth consecutive month of year-on-year declines.
Also, global manufacturing in August showed rising optimism in manufacturing PMI, with a rebound to 51.75, the strongest reading since June 2024.
Sentiment on new export orders, however, remains below 50 at 48.73, reflecting persistent caution amid tariff uncertainty.
Trade lane growth indicate air freight volumes in August 2025 increased significantly across most major trade corridors.
Europe–Asia and within Asia posted robust double-digit growth, while Middle East–Asia, North America-Europe, and Africa-Asia also saw notable gains.
In contrast, Asia–North America, Middle East–Europe, and Within Europe recorded declines.
Walsh added, “Air cargo demand grew 4.1% in August, marking the sixth consecutive month of year-on-year growth.
In contrast, Asia–North America, Middle East–Europe, and Within Europe recorded declines.
Walsh added, “Air cargo demand grew 4.1% in August, marking the sixth consecutive month of year-on-year growth.
Volumes continue to grow even as global trade patterns change. Air cargo has benefitted from a shift from sea for some high value goods as shippers try to minimise the risk of tariff changes.
“And growth patterns indicate some being diverted away from North America, fuelling stronger growth for the Europe–Asia, Within Asia, Africa–Asia, and Middle East–Asia trade lanes. This adaptability is vital as shippers navigate the evolving landscape of US tariff policy,”
Industry analysts say rising cargo volumes typically reflect growth in international trade, manufacturing, and supply chain demand.
Passenger growth points to higher consumer confidence, business travel recovery, and robust tourism.
Airlines are likely experiencing higher load factors (better capacity utilisation) and revenue gains, which could strengthen financial performance and stability.
Increased passenger and cargo activity reflects restored international mobility, expansion of route networks, and better global connectivity between markets.
Sustained improvements in both segments signal that stakeholders (governments, investors, airports, and logistics firms) see the industry on a stable growth trajectory, supporting investment and fleet expansion.
As IATA data reveal, the improvement in both the air passenger and cargo segments suggests renewed economic momentum, stronger global trade, and growing travel demand—signs of resilience and confidence in the global air transport sector.
“And growth patterns indicate some being diverted away from North America, fuelling stronger growth for the Europe–Asia, Within Asia, Africa–Asia, and Middle East–Asia trade lanes. This adaptability is vital as shippers navigate the evolving landscape of US tariff policy,”
Industry analysts say rising cargo volumes typically reflect growth in international trade, manufacturing, and supply chain demand.
Passenger growth points to higher consumer confidence, business travel recovery, and robust tourism.
Airlines are likely experiencing higher load factors (better capacity utilisation) and revenue gains, which could strengthen financial performance and stability.
Increased passenger and cargo activity reflects restored international mobility, expansion of route networks, and better global connectivity between markets.
Sustained improvements in both segments signal that stakeholders (governments, investors, airports, and logistics firms) see the industry on a stable growth trajectory, supporting investment and fleet expansion.
As IATA data reveal, the improvement in both the air passenger and cargo segments suggests renewed economic momentum, stronger global trade, and growing travel demand—signs of resilience and confidence in the global air transport sector.
Pratap John is Business Editor at Gulf Times. X handle: @PratapJohn.
Source: GULF TIMES