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FREIGHTER DEMAND

KEY DRIVERS

AND TRENDS

IATA reports that air cargo now accounts
for approximately 35% of global trade by
value, emphasising its critical role in the
economy. As carriers expand their fleet to
meet increasing demand, they are also
facing challenges related to capacity
constraints, fuel efficiency, and the need
for sustainable practices. This dynamic
landscape will influence how air cargo
operators strategise their growth and
adapt to the evolving market demands.

Parijat Sourabh

he air cargo industry has ex- are expected to reach $120 billion in 2024, of global trade by value, according to IATA.
perienced a dramatic overhaul following $138 billion in 2023. While this The explosive growth of e-commerce
in recent years. Global trade is below the extraordinary peak of $210 has also been a game-changer for the air
Tpatterns have shifted, technol- billion in 2021, it remains above the 2019 cargo industry, reshaping demand pat-
ogy has advanced, and consumer habits figure of $101 billion and surpasses the terns and driving significant investments
have changed. This has led to a significant December 2023 forecast of $111 billion. in capacity and technology. This symbiotic
increase in demand for freighter aircraft by Despite strong demand, cargo yields relationship between e-commerce and air
air cargo carriers. are projected to decline by 17.5% in cargo has accelerated in recent years
Amid global challenges, exceptional 2024, although they will remain slightly In its EU cross-border e-commerce
resilience and adaptability have been above 2019 levels. This shift represents a forum 2024 report, Rotate, an air cargo
demonstrated by the air cargo industry. By normalisation following the exceptional consulting and data specialist firm, stated
2024, the sector has not only rebounded highs experienced during the pandemic. that if e-commerce growth continues at
from the initial impact of the COVID-19 A significant contributor to this change is +20% and general cargo at +2%, overall
pandemic but also witnessed notable the substantial increase in belly capacity growth by 2025 would reach +7%. It has
growth in key segments. that entered the market in 2023, coincid- also projected that air cargo demand
ing with the recovery of passenger travel. growth in 2024 is expected to reach
Current state of the air cargo The importance of air cargo in global around +11 to 12%.
industry trade cannot be overstated. Today, air On e-commerce growth, American air-
According to the International Air Trans- cargo transports over $6 trillion worth of craft manufacturer Boeing, in its World Air
port Association (IATA), cargo revenues goods, accounting for approximately 35% Cargo Forecast 2022-2041, states that glob-

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