The International Air Transport Association (IATA) has released data on the global air cargo market for 2024, highlighting an exceptional year of growth and profitability. Full-year demand, measured in cargo tonne-kilometers (CTK), rose by 11.3% compared to 2023, with international operations seeing an even stronger 12.2% increase. The year’s total cargo volumes surpassed the previous record set in 2021, solidifying air cargo’s position as a critical driver of global trade. Capacity, measured in available cargo tonne-kilometers (ACTK), also saw a notable 7.4% rise, with international operations growing by 9.6%. Despite a 1.6% decline in full-year yields compared to 2023, they remained 39% higher than 2019 levels, underscoring the sector’s resilience. December 2024 closed the year on a strong note, with demand up 6.1% year-on-year and capacity increasing by 3.7%. Cargo yields in December surged by 6.6% compared to the previous year, marking a 53.4% increase over December 2019. IATA’s Director General, Willie Walsh, attributed the robust performance to several factors, including strong e-commerce demand, disruptions in ocean shipping, and airspace restrictions affecting long-haul routes to Asia. "Air cargo was the standout performer in 2024, with airlines moving more cargo than ever before. Importantly, it was a year of profitable growth," Walsh stated. He acknowledged that while yields had softened from their peak levels in 2021-2022, they remained significantly above pre-pandemic figures. Looking ahead to 2025, IATA forecasts a moderation in growth to 5.8%, in line with historical trends. Walsh noted that economic fundamentals point to continued strength in air cargo, aided by falling oil prices and expanding global trade. However, he cautioned that geopolitical developments, particularly trade policies under the Trump administration, could pose challenges. “The first week of the Trump administration demonstrated its strong interest in using tariffs as a policy tool that could bring a double whammy for air cargo—boosting inflation and deflating trade,” he warned. Key economic indicators from 2024 highlight the broader market conditions shaping air cargo. Global trade in goods grew by 3.6% annually, while manufacturing output and new export orders saw contractions, with PMI figures falling below the critical 50 mark in December. Inflationary pressures also varied by region, with the U.S. and EU seeing slight increases in December while China continued to experience deflation, reinforcing concerns about its economic slowdown. Despite these macroeconomic shifts, air cargo remains well-positioned for another strong year in 2025, with demand expected to remain resilient amid evolving global trade dynamics.