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Updated May 28, 2026 · 18:56
Business World News Updated May 28, 2026

Air Cargo Demand Rises 4% in April Despite Middle East Disruptions

Global air cargo demand increased 4% year-on-year in April 2026, driven by strong Asia-linked trade flows, according to IATA. Asia Pacific carriers recorded the strongest growth at 10.5%, while Middle Eastern airlines saw a sharp 18.2% decline due to ongoing conflict. The disruptions have reshaped cargo routes and squeezed capacity on key corridors, particularly affecting Europe-Middle East and Middle East-Asia trade lanes. Rising fuel costs and tighter capacity have pushed cargo yields up 32.2% year-on-year.

Air cargo demand rises 4% in April despite Middle East disruptions: IATA

Geneva, May 28

Global air cargo demand rose four per cent year-on-year in April 2026, driven largely by strong Asia-linked trade flows, even as disruptions caused by the ongoing Middle East conflict continued to reshape cargo routes and squeeze capacity on key global corridors, according to the International Air Transport Association.

According to IATA data, total demand, measured in cargo tonne-kilometres (CTK), increased 4 per cent in April compared to the same month last year, while global cargo capacity, measured in available cargo tonne-kilometres (ACTK), fell 0.4 per cent.

"Air cargo demand grew 4% year-on-year in April, driven by strong Asia-linked trade flows. But this positive news masks a more complex operating environment," said Willie Walsh, IATA's Director General.

He added, "Severe disruption at major Gulf hubs due to the war in the Middle East continued to reshape trade routes and constrain capacity on key corridors. With dedicated freighters carrying much of the growth, air cargo is once again keeping supply chains moving amid trade disruptions."

Walsh further said, "The coming months will test how well the sector can absorb continued geopolitical uncertainty and elevated operating costs."

The IATA Air Cargo Market Analysis for April showed that Asia Pacific carriers emerged as the biggest driver of growth, recording a 10.5 per cent rise in cargo demand year-on-year, the strongest among all regions. Capacity in the region increased 5.3 per cent.

North American airlines posted a 5 per cent increase in cargo demand, while European carriers recorded a 6 per cent rise. African airlines also registered a strong growth of 7.7 per cent despite a 9.4 per cent decline in capacity.

In contrast, Middle Eastern airlines saw the sharpest decline, with cargo demand plunging 18.2 per cent and capacity falling 22.9 per cent year-on-year as operational disruptions and restricted airspace affected Gulf aviation hubs.

The report noted that international cargo demand remained concentrated around Asia-linked trade lanes. Asia Pacific carriers recorded an 11.3 per cent increase in international CTKs, supported by strong intra-Asia and trans-Pacific cargo flows.

Among trade corridors, the Europe-Asia route recorded one of the strongest performances, with cargo traffic growing 16.2 per cent year-on-year and extending a multi-year expansion trend. Intra-Asia cargo traffic also rose 13 per cent, while Asia-North America volumes increased 8.3 per cent, marking a sixth consecutive month of expansion.

However, trade lanes directly linked to the Middle East remained under pressure. Europe-Middle East cargo traffic contracted 25.9 per cent, while Middle East-Asia traffic fell 22.4 per cent due to ongoing regional conflict and rerouting challenges.

The report also highlighted rising operating costs for airlines. Jet fuel prices surged 121.1 per cent year-on-year in April, while crude oil prices rose 77.7 per cent amid supply concerns linked to geopolitical tensions around the Strait of Hormuz.

IATA said tighter cargo capacity and higher fuel costs pushed air cargo yields sharply higher, with USD-denominated cargo yields rising 32.2 per cent year-on-year in April.

Despite geopolitical and cost pressures, IATA said global manufacturing activity remained in expansion territory during April.

The global Manufacturing Output PMI rose to 53.4, while the New Export Orders Index stood at 50.2, both above the 50-point threshold that indicates growth.

— ANI

Reader Comments

Priya S

The jet fuel price surge of 121% is scary! 😱 This will inevitably push up shipping costs for everything from electronics to medical supplies. As a small business owner importing raw materials, I'm already feeling the pinch. IATA needs to push for more stable fuel pricing mechanisms.

Michael C

Interesting data from IATA. The 18.2% drop in Middle Eastern airlines' demand shows how fragile regional air cargo networks are. Meanwhile, the Europe-Asia route growing 16.2% is impressive—clearly trade is rerouting away from conflict zones. The question is how long this diversion will last.

Kavya N

I appreciate the growth but we must question IATA's optimism. Capacity dropping 0.4% globally while demand rises 4% means tighter supply—and that means higher costs for consumers like us. Also, with Strait of Hormuz tensions, our energy imports could get pricier. Not a rosy picture for India's import-dependent sectors.

Sarah B

The 32.2% rise in cargo yields is massive—that's great for airlines' bottom lines but tough for exporters. India's textile and pharmaceutical exporters rely heavily on air cargo; they'll struggle if costs keep climbing. Hope the government steps in with some support or bilateral agreements to stabilize routes.

Rohit P

PMI at 53.4 is a good sign! Manufacturing in India is doing well despite global chaos. But we need to diversify trade routes—over-reliance on Gulf hubs is risky. Maybe India should invest more in direct freighter services to Europe and North America. Self-reliance in logistics, yaar! 🇮🇳

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