The International Air Transport Association (IATA) released data for September 2024 global air cargo markets showing continuing strong annual growth in demand. 

• Total demand, measured in cargo tonne-kilometers (CTKs), rose by 9.4% compared to September 2023 levels (10.5% for international operations) for a 14th consecutive month of growth.

• Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 6.4% compared to September 2023 (8.1% for international operations). This continued to be largely related to the growth in international belly capacity, which rose 10.3%--extending the trend of double-digit annual capacity growth to 41 consecutive months. 

Several factors in the operating environment should be noted:

• Year-on-year, industrial production rose 1.6% while global goods trade increased 2.8% for a sixth consecutive month of growth. Monthly trade grew by 1.4%, the highest in seven months. 

• The Purchasing Managers Index (PMIs) for global manufacturing output, and the PMI for new export orders, were both below the 50-mark at 49.4 and 47.5 respectively, indicating contraction.

• US headline inflation, based on the annual Consumer Price Index (CPI), declined by 0.2 percentage points to 2.4% in September, marking the seventh straight month of easing inflation. In the same month, the inflation rate in the EU fell by 0.3 percentage points to 2.1%, continuing a process started in January 2023. China’s consumer inflation remained low at 0.4% in September amid concerns of an economic slowdown. 

Trade Lane Growth: International routes experienced exceptional traffic levels for a fifth month, with a 10.5% year-on-year increase in September. Airlines are benefiting from rising e-commerce demand in the US and Europe amid ongoing capacity limits in ocean shipping.