IATA reports 0.2% cargo, 3.9% passenger demand growth

In July 2026, global air cargo and passenger demand both grew slightly, according to the International Air Transport Association (IATA). Air cargo demand increased by 3.9% year-on-year, while passenger demand rose by a mere 0.2%. The growth was driven primarily by airlines in Asia-Pacific, Europe, and North America, which accounted for more than 90% of the overall increase.

IATA reported that total air cargo demand, measured in cargo tonne-kilometres, climbed 3.9% compared to July 2025. International operations showed even stronger growth at 4.7%. Capacity, measured in available cargo tonne-kilometres, also rose, by 1.7% year-on-year, while international capacity increased by 1.8%.

Marie Thomsen, IATA's Senior Vice President of Sustainability and Chief Economist, noted that despite rising fuel costs and geopolitical uncertainties, the outlook for air cargo remains broadly positive. She highlighted that dedicated freighters gained market share due to the decline in belly-hold traffic, reflecting the demand for larger or specialized shipments and the operational flexibility offered by freighters.

Thomsen also expressed confidence in the market for the latter part of the year, citing factors such as manufacturing activity, export orders, and global trade growth. However, she cautioned about the impact of higher fuel prices, geopolitical tensions, and tariff uncertainties.