Kuala lumpur: Global demand for international air cargo experienced a significant decline of 4.8 percent in March this year compared to March 2025 levels, with international operations seeing a 5.5 percent drop, as reported by the International Air Transport Association (IATA).
According to BERNAMA News Agency, capacity measured in available cargo tonne-kilometres decreased by 4.7 percent as opposed to March 2025, with international operations experiencing a 6.8 percent decrease. Willie Walsh, IATA's director general, attributed the reduction in demand largely to severe disruptions at major Gulf hubs caused by ongoing conflicts in West Asia. The usual post-Lunar New Year slowdown also contributed to the decline.
Walsh noted that despite the current dip in demand, underlying trends remain strong. Recent revisions by the World Trade Organisation and the International Monetary Fund to trade and GDP projections continue to indicate potential growth in 2026. He emphasized the critical role of air cargo networks in maintaining global supply chains amidst geopolitical, tariff, and operational challenges. However, he expressed concerns about fuel supply and prices, which are anticipated to challenge the industry in the coming months.
In terms of regional performance, Walsh highlighted that Asia-Pacific airlines saw a 5.4 percent year-on-year growth in air cargo demand in March, with capacity increasing by five percent year-on-year. He noted a divergence in air cargo performance across major trade lanes, with Africa-Asia leading growth, followed by Asia-Europe, and strong intra-Asia trade flows. Conversely, Gulf-linked corridors were severely affected by the ongoing West Asian conflict.
IATA also reported on global passenger demand for March 2026, revealing a 2.1 percent increase compared to March 2025, as measured in revenue passenger kilometres. Total capacity decreased by 1.7 percent year-on-year, while the load factor rose to 83.6 percent, up 3.1 percentage points from the previous year. International demand fell by 0.6 percent from March 2025, with a 6.2 percent decrease in capacity, and the load factor increased to 84.1 percent, up 4.7 percentage points.
The report noted a significant 60.8 percent decline in traffic by carriers in West Asia, leading the overall drop in international traffic. Despite disruptions in West Asia, demand for air travel continued to grow. Outside of the Middle East, demand increased by eight percent. Walsh warned of potential supply shortages in regions heavily reliant on Gulf supplies, particularly Asia and Europe, and highlighted the impact of rising jet fuel costs on ticket prices.
Walsh emphasized the importance of regulatory flexibility on slots due to airspace capacity restrictions and potential fuel rationing. Asia-Pacific airlines achieved an 11.5 percent year-on-year increase in demand, with a 1.5 percent increase in capacity and a load factor of 91.2 percent, up 8.1 percentage points from March 2025. The region's traffic was bolstered by the Lunar New Year travel period and international routes, excluding those to West Asia.
IATA represents over 360 airlines, accounting for approximately 85 percent of global air traffic.