IATA Forecasts 5.5% Growth In Global Air Cargo Sector Amid Economic Challenges

Brendan Sullivan, who leads the cargo division at the International Air Transport Association (IATA), expressed optimism about the air cargo industry's future. He believes that despite economic uncertainties, sustainable growth is achievable by 2025. Speaking at the World Cargo Symposium 2025 in Dubai, he highlighted a projected global air cargo growth rate of 5.5% for that year, surpassing expected global GDP growth.

Sullivan pointed out that the Middle East, especially the UAE, is strategically positioned to benefit from these trends. The region's advanced infrastructure and logistics capabilities are key factors. "What we’ve heard from Emirates SkyCargo confirms that this region is highly connected to the world and is making significant investments in infrastructure and customer-centric solutions delivered with high levels of flexibility and professionalism," he stated.

The UAE's focus on expanding logistics capabilities aligns well with global growth trends. Sullivan noted that the region could increase its market share in specialised cargo sectors like pharmaceuticals and perishables. These sectors depend heavily on air transport and are expected to grow significantly in the coming years.

Reflecting on recent performance, Sullivan mentioned that air cargo carriers benefited from increased global demand in 2024. This positive trend is anticipated to persist into the next year despite ongoing economic and geopolitical challenges.

Sullivan addressed concerns about delayed new aircraft deliveries affecting the sector. He explained that while these delays impact future expansion plans and operational efficiency, particularly regarding fuel consumption, they do not significantly affect current daily operations as existing fleets continue to operate at full capacity.

The ageing fleet presents challenges primarily related to efficiency rather than volume. However, Sullivan remains confident about maintaining operational capacity despite these hurdles.

The promising outlook for air cargo growth reflects a strong foundation laid by improved demand and strategic investments in infrastructure. As the industry navigates through uncertainties, regions like the Middle East stand ready to leverage their strengths for continued success.

With inputs from WAM