2025: A year of smarter, greener, faster air cargo

This year was not a year of incremental progress for the air cargo industry. 2025 was a year of convergence: where artificial intelligence, digitalisation, robotics, sustainability, and evolving trade flows intersected to reshape the global airfreight ecosystem. This was the year when innovation moved from isolated experiments to fully operational, measurable transformations. Across airports, warehouses, freighter networks, and trade corridors, operators embraced technology at scale, reimagined processes, and redefined what it means to be a resilient, efficient, and climate-conscious logistics provider.

While no single breakthrough defined the year, the cumulative impact of multiple streams of innovation gave air cargo a new identity. AI became the brain of the industry, controlling operations in real time. Digital cargo corridors enabled frictionless international trade. Robotics transformed handling and warehousing, while sustainability initiatives moved from ambitious targets to tangible reductions in emissions. E-commerce and cross-border trade drove new network strategies, and high-value cargo, especially pharmaceuticals accelerated investment in temperature-controlled supply chains.

As David Shepherd, CEO of IAG Cargo, observed, “Today, reliable air cargo is built on real-time intelligence. With new technologies and advanced analytics, we are giving our teams the ability to look ahead, forecast demand with precision and maximise bellyhold capacity, helping us to create a more resilient network and strengthen reliability across every stage of the journey.”

This comprehensive story explores how 2025 has laid the foundation for the next era of air cargo, a fully digital, automated, and climate-conscious ecosystem.

AI: The brain of air freight
Artificial intelligence moved decisively in 2025 from being a predictive tool to becoming a real-time operational partner. Where once AI was primarily used for demand forecasting or route planning, now it actively controls operational decision-making, optimises capacity, and provides actionable insights to decision-makers. Airlines, freight forwarders, and ground handlers alike adopted AI-driven digital twins, dynamic route optimisers, and predictive analytics to ensure smoother, faster, and more reliable operations.

Tristan Koch, Chief Commercial Officer at Awery Aviation Software, highlights one of the transformative innovations: “This year we launched our vMagic tool on the CargoBooking platform. It’s essentially a speech-to-structured data functionality; users can dictate shipment details in most major languages, and the system instantly converts them into a structured digital format. It benefits our customers the most by generating quotes the moment shipment details are spoken.”

Even MASkargo emphasised AI’s growing role in operational foresight. Jason Thomas, CEO of MASkargo noted, “The focus on AI-driven predictive planning and cargo safety forms part of MASkargo’s 2025 roadmap for improved reliability and responsiveness.”

Etihad Cargo also made significant progress in embedding AI across its commercial and operational systems. SmartTrack, supported by IoT-enabled hardware and six advanced sensors — temperature, humidity, light, shock, tilt, and location — provided end-to-end traceability monitored by a 24/7 Control Center. “AI-powered software identifies patterns, anticipates irregularities, and issues proactive alerts when a credible risk is detected,” said Andy Newbold, Head Cargo Commercial, Etihad Cargo. The carrier also upgraded its revenue-management platform with AI-driven forecasting and pricing, enabling more accurate and dynamic responses to shifting market demand. According to Newbold, these tools enhanced anticipation, optimisation, and operational reliability throughout 2025.

In hubs and warehouses, AI-powered decision-making enabled better peak-season planning. Airlines now use digital twins to simulate operations, anticipate bottlenecks, and optimise resources. Kuehne+Nagel leveraged AI models for route optimisation and air logistics pricing, aiming to improve speed-to-market and accuracy. According to Yngve Ruud, EVP Air Logistics at Kuehne+Nagel, “By coupling deep market expertise with transparent communication, we provide clients with visibility and confidence, ensuring that logistics operations stay resilient and responsive no matter what the market brings.”

For carriers like Lufthansa Cargo, AI was integrated into planning, pricing, and operational decision-making. Jasmin Kaiser, Head of Information Management at Lufthansa Cargo, explained, “We now use an AI- and RPA-based tool to automatically transfer email booking requests into the system, enabling significantly faster processing and providing customers with instant, fully automated booking confirmation. A proactive notification feature informs customers in near real-time about any changes to their transport plan.” This combination of AI, digitalisation, and process optimisation has led to more stable plans, quicker reaction cycles, and improved utilisation of information across the value chain.

E-commerce also contributed to AI’s rise. Rapidly shifting trade patterns demand systems that can forecast and adjust capacity in near real time. David Shepherd of IAG Cargo noted that the industry’s reliance on precision and real-time decision-making has never been greater: “Supply chains today depend on this precision, and we are designing our operation to deliver exactly that.”

By 2025, AI had become the operational backbone of the industry. No longer just a forecasting tool, it had evolved into an active partner, orchestrating complex logistics networks, reducing errors, and enabling human operators to focus on strategic decision-making rather than routine, repetitive tasks.

Sustainability: From “Targets” to “Tonnes”
If AI became the brain of air cargo, 2025 was also the year sustainability became its beating heart. Airlines and logistics providers translated ambitious climate targets into tangible outcomes, notably through the deployment of Sustainable Aviation Fuel (SAF), electric vehicles, and climate-conscious cargo corridors.

IAG Cargo highlighted the scale of SAF adoption: “Sustainability sits at the core of our strategy, and we are constantly exploring opportunities to improve our environmental performance across the operations. In the air, we are proud to be part of one of the world’s largest airline groups — and IAG through the use of SAF saved 469,000 tonnes of CO₂ in 2024, up almost 200% versus 2023,” said David Shepherd. Furthermore, participation in the oneworld alliance’s Breakthrough Energy SAF fund will support the development of innovative SAF technologies.

Etihad Cargo also strengthened its sustainability agenda through fleet efficiency and ground-operations improvements. Operating one of the youngest and most fuel-efficient fleets helped directly reduce cargo-related emissions. The carrier additionally signed an MoU with LODD Autonomous to explore hybrid eVTOL aircraft operations across the GCC. Capable of carrying up to 250 kg over a 700 km distance, these low-emission aircraft represent a forward-looking approach to sustainable short-haul logistics.

DHL, which has been a global leader in sustainability, also reported significant progress in 2025. Its medium-term target for 2030 aims to reduce greenhouse gas emissions across aviation, ground transport, and facilities to less than 29 million metric tonnes. Major achievements this year included SAF agreements in Asia and the U.S., fleet electrification, and the launch of carbon-neutral facilities. DHL’s deployment of over 8,000 robots globally has also contributed indirectly by improving efficiency and reducing unnecessary energy consumption.

Kuehne+Nagel’s initiatives demonstrate that sustainability is now integrated into operational decision-making. The company’s Cool Corridors for pharmaceuticals and high-value cargo combine passive and active packaging solutions to maintain a strict temperature range (+2°C to +8°C) throughout shipments, reducing time out of range, improving safety, and optimising logistics costs. As the Ruud explains, these measures allow shippers to meet sustainability goals while maintaining operational efficiency.

These tangible advances illustrate that sustainability is no longer a set of aspirational commitments or pilot projects but it is now a measurable component of air cargo operations, integrated into the decisions that define day-to-day logistics.

Robotics on ramp & warehouse floor
Automation extended far beyond digital algorithms. In 2025, robotics began transforming ground operations, warehouses, and cargo handling, bringing manufacturing-level efficiency to the airfreight sector.

DHL, for example, partnered with Boston Dynamics and Robust AI to deploy autonomous mobile robots (AMRs), robotic arms, and automated sorters across its global network. Jasmin Kaiser notes that these systems improve operational flexibility, reduce errors, and optimise workflows. In Singapore, DHL Supply Chain launched the region’s first autonomous vehicle for in-plant material movements, integrating it with warehouse management systems to reduce carbon emissions by up to 85%. In New Zealand, the deployment of 41 Geek+ Goods-to-Person robots at a Life Sciences & Healthcare facility became the largest such implementation by any 3PL provider in the country.

Kuehne+Nagel complemented this trend by implementing maximum visibility labels that track tilt, shock, humidity, and temperature in real time. They also automated shipment-related documents and email communications, reducing errors and speeding up communication with customers. Automation, in this sense, did not replace human workers but enhanced their effectiveness, allowing them to focus on higher-value activities while robots handled repetitive, physically demanding tasks.

These robotic innovations not only increased throughput and accuracy but also improved workplace safety and ergonomics, addressing long-standing challenges in logistics-heavy industries.

Digital cargo corridors connecting world
2025 witnessed the rise of digital cargo corridors, interconnected networks that enable paperless, real-time logistics across airports, ports, and trade lanes. These corridors integrate end-to-end e-AWB, digital interline agreements, customs integrations, and real-time visibility.

Amar More, CEO & Co-Founder of Kale Logistics Solutions, explained that these digital corridors are more than a collection of technologies: “What we are building is not just air-to-air or port-to-port corridors. We are also building multimodal corridors to facilitate cross-mode paperless trade and ease trade facilitation.” This approach bridges airports, ports, freight forwarders, and customs authorities, creating frictionless, transparent, and reliable trade flows.

Integration with existing systems was another critical focus. Awery Aviation Software partnered with RDC Aviation and Cirium to provide its ERP users access to operational data, enabling airlines and GSAs to make smarter, faster decisions. Digital twin technologies at hubs now allow operators to simulate cargo flow and identify bottlenecks before they occur.

Etihad Cargo also advanced digitalisation significantly in 2025. SmartTrack played a central role by enhancing real-time shipment visibility and providing customers with improved traceability, supported by an AI-enabled backend that identifies irregularities early and enables faster operational responses. Etihad also accelerated the modernisation of its core IT landscape, integrating AI across new operational and planning tools. According to Andy Newbold, these developments support Abu Dhabi’s evolution as a digitally connected hub aligned with global standards such as ONE Record and API-led connectivity.

The Middle East led with fully paperless terminals, while APAC hubs expanded digital twin ecosystems. Thomas adds that MASkargo is leveraging its Kuala Lumpur hub and Singapore station to strengthen regional connectivity through multimodal links across Malaysia and ASEAN.

By 2025, these digital corridors had become operational across major trade lanes, especially in the Middle East, Europe, and APAC, reducing delays, improving predictability, and increasing the speed and reliability of global supply chains.

E-Commerce & nearshoring reshape networks
Global e-commerce continued to drive profound changes in fleet utilisation and network design. Narrowbody freighters surged in popularity for express routes, and Middle Eastern and Indian hubs emerged as critical nodes in regional networks.

Etihad Cargo adapted its network and partnerships to stay ahead of rising e-commerce and express demand. The Joint Business Agreement with SF Airlines strengthened east–west flows with 21 weekly freighter flights from mainland China. Connectivity from Hong Kong was expanded through seven weekly Etihad-operated freighters and five passenger flights. Dedicated capacity through Atlas Air’s Boeing 777 freighter added further reach across Hong Kong, Abu Dhabi and Madrid. The carrier also expanded its European footprint and explored new interline opportunities to extend its network reach.

4RCargo, which developed its proprietary SugarCRM platform, exemplified innovation in this space. Jasmin Kaiser explained, “SugarCRM combines airlines’ systems with 4RCargo’s internal systems, providing more accurate and measurable delivery data for customers. We also partnered with regional GHAs and RFS providers to minimise delays at handovers.”

The nearshoring trend further amplified the need for flexible networks. As production shifted away from Asia and Western Europe, Central and Eastern Europe experienced a surge in cargo demand. 4RCargo responded by expanding its supplier base, collaborating with digitally enabled providers, and utilising smaller regional airports to reduce congestion and delays.

For airlines like IAG Cargo, digital booking platforms became central to meeting the needs of e-commerce shippers. David Shepherd observed, “E-commerce continues to reshape global supply chains. Our online booking platform allows customers to book, amend, or cancel shipments with real-time pricing that adapts to market conditions.”

These developments illustrate a dual trend: the industry is scaling up operationally to handle increased volumes while deploying technology to maintain flexibility, efficiency, and reliability.

Smart cool chains reshape cold logistics
High-value, temperature-sensitive cargo drove some of the most sophisticated technological investments in 2025. From sensorised ULDs to real-time tracking systems, pharma logistics has become a laboratory for innovation benefiting the wider air cargo ecosystem.

Kuehne+Nagel described how its Cool Corridors maintain product integrity across the supply chain.

By using IoT sensors and an active monitoring system, we closely track product safety and integrity in real-time. Our HyperCare team provides rapid updates and addresses potential in-transit disruptions

Yngve Ruud, Kuehne Nagel

Lufthansa Cargo introduced the Exposure Time Calculator for temperature-sensitive shipments and launched an interactive global Pharma Stations map. These initiatives enhance transparency and allow shippers to optimise packaging strategies, reduce costs, and improve environmental performance.

DHL also deployed advanced robotics and automated sorters in its Life Sciences hubs, ensuring faster, safer, and more accurate handling of temperature-sensitive goods. The cumulative effect of these investments has been a step-change in cold-chain reliability, enabling more predictable and efficient pharma logistics.

Humans and machines together
Despite widespread automation, 2025 proved that people remain central to air cargo innovation. Reskilling initiatives, VR-based training, and AI-assisted learning modules ensured that human workers could operate effectively alongside robots and AI systems.

DHL’s deployment of AMRs, collaborative robotics, and autonomous vehicles improved workplace safety while reducing physical strain. Employees could focus on decision-making, supervision, and exception management rather than repetitive manual tasks.

Kuehne+Nagel emphasised the human dimension of automation, noting that AI and robotics are not replacements but tools to elevate employees’ capacity to manage complex, fast-moving logistics networks.

The road ahead — Integrated, resilient, intelligent
Looking toward 2026 and beyond, industry leaders see a convergence of AI, IoT, blockchain, and digital twin technologies as the next frontier. Amar More of Kale Logistics Solutions predicts that these integrated technologies will enable predictive and autonomous decision-making, live operational intelligence, and trusted cross-border data exchange.

The biggest leap will be fully connected, intelligent, and trust-driven cargo ecosystems

Amar More, Kale Logistics

This integrated stack promises new revenue models, smarter capacity utilisation, superior customer experiences, and resilience against market volatility.

Etihad Cargo will continue building on the progress made through SmartTrack and other digital enhancements, adding more predictive, automated, and customer-facing insights. Andy Newbold highlighted that the carrier is implementing a new CMS, an AI-enabled CRM platform and enhancements to cargo operational systems in Abu Dhabi. The development of the LODD network across the UAE and GCC will introduce new low-emission logistics options, streamlining customer engagement and strengthening operational intelligence.

As airlines, forwarders, and logistics providers continue to innovate, the industry is moving toward a vision where AI drives real-time decision-making, robotics handle the operational heavy lifting, and sustainability is embedded into every stage of the supply chain. Digital corridors, cold-chain reliability, and e-commerce responsiveness are no longer optional, they are standard expectations.

2025 will be remembered as the year air cargo reinvented itself. It was not a year of recovery or incremental progress, but one of convergence: AI became the operational brain, robotics transformed ground operations, digital corridors connected trade lanes, and sustainability became a measurable reality. E-commerce and high-value cargo further pushed innovation in fleet management and cold-chain logistics, while workforce reskilling ensured humans and machines could collaborate effectively.

In short, 2025 was the year air cargo stepped into a fully digital, automated, and climate-conscious future, a foundation that will define the industry for decades to come.

As David Shepherd of IAG Cargo aptly put it, “Supply chains today depend on precision, and we are designing our operation to deliver exactly that.” Precision, efficiency, resilience, and sustainability now define the global air cargo ecosystem, and 2025 was the year this new era was truly born.