Kuala lumpur: The air cargo industry’s demand, measured in cargo tonne-kilometers (CTK), increased 0.8 per cent year-on-year (y-o-y) in June 2025, down from 2.2 per cent in May, reflecting continued uncertainty in the cargo market amid trade tensions.

According to BERNAMA News Agency, the International Air Transport Association (IATA) reported that international CTK increased by 1.6 per cent y-o-y, with most regions and routes posting single-digit gains, while Asia Pacific led the international air cargo growth with an 8.3 per cent y-o-y increase. In contrast, trade measures introduced by the United States government in recent months have led to a significant drop in traffic to and from North America.

IATA Director General Willie Walsh commented on the June air cargo data, highlighting the importance of stability and predictability as essential supports for trade. He noted that while emerging clarity on US tariffs allows businesses greater confidence in planning, the higher tariffs on goods imported into the US pose economic challenges. He urged governments to simplify and secure trade facilitation through digitalisation.

According to the IATA, which represents some 350 airlines comprising over 80 per cent of global air traffic, air cargo volumes remained strong in most markets despite the restrictive US trade policy. However, in June 2025, airspace disruption in the Middle East hindered the region’s ability to develop and expand operations through its hubs.

The association noted that many routes connecting North America and the Middle East have seen a marked drop in demand, resulting in a 2.5 per cent y-o-y decrease in cargo yields. Despite this, the market has absorbed part of the initial shock, with a slight rebound of 0.9 percentage points compared to the previous month.

On global manufacturing, IATA observed that output measured by the purchasing managers index (PMI) returned above the 50-point threshold, achieving a 51.2 in June 2025, representing a 1.6 per cent y-o-y decline, but a sharp 4.5 per cent increase compared to the previous month. While output increased in June, new export orders rose 1.2 index points from May, reaching 49.2, which remains below the 50 mark. New export orders continue to be affected by changes in the US trade policy, impacting trade flows and reshaping global demand dynamics.