Global Air Cargo Industry Anticipates 5.5% Expansion in 2025 Despite Prevailing Worldwide Adversities, According to IATA
The global air cargo industry is gearing up for continued growth in 2025, according to Brendan Sullivan, the Global Head of Cargo at the International Air Transport Association (IATA). Speaking at the World Cargo Symposium 2025 in Dubai, Sullivan outlined key growth drivers and challenges for the sector.
One of the primary growth drivers is the increase in perishable goods volumes. Air freight plays a crucial role in transporting fresh produce from farms to supermarket shelves quickly, preserving product freshness and reducing food waste. This sector, due to its short shelf life and time sensitivity, heavily relies on air cargo.
Another driver is the essential nature of air freight for time-sensitive products. Although air cargo accounts for less than 1% of global trade volume, it represents nearly 35% of trade value, reflecting the premium and time-sensitive nature of goods carried by air.
To accommodate market growth and consumer needs, IATA is collaborating with airlines and shippers to develop standards, training, efficient handling techniques, and packaging methods that ensure food safety while maintaining speed as a non-negotiable factor in transport.
However, the air cargo industry faces several challenges. Capacity constraints, linked to aircraft production delays, supply chain disruptions, and labor shortages, impact the ability to expand capacity quickly to meet rising demand. The need for specialized handling, training, and packaging for perishable goods adds complexity and cost to air cargo operations.
Moreover, potential changes in trade tariffs and regulations could exacerbate supply chain constraints and production limitations, indirectly affecting air cargo capacity.
Despite these challenges, the air cargo sector remains resilient, as stated by Sullivan. He highlighted the Middle East, particularly the UAE, as well-positioned to align with global growth trends, due to its advanced infrastructure and continued investment in logistics. The region is expected to expand its footprint in high-value specialized cargo segments, such as pharmaceuticals and perishables.
Sullivan's outlook for air cargo is cautiously optimistic, anchored in strong demand, regional investment, and strategic focus on high-value sectors. The momentum from 2024's performance is expected to carry through into 2025, with the global air cargo industry projected to grow by 5.5% in 2025.
Sources: [1] IATA (2025). Air Cargo Market Analysis. Retrieved from https://www.iata.org/contentassets/4a3e1118a8f546a48e7b563602f8d9eb/air-cargo-market-analysis-2025.pdf [2] IATA (2025). Perishable Cargo: The Future of Air Cargo. Retrieved from https://www.iata.org/contentassets/19335814d9704f4396e2d7b3272d6688/perishable-cargo-the-future-of-air-cargo.pdf
Investments in the aerospace industry could contribute to the future growth of the air cargo sector, given the increasing demand for time-sensitive goods and perishable products. The finance industry plays a crucial role in providing the necessary capital for such investments, especially in regions like the UAE, which are strategically positioned to expand their footprint in high-value cargo segments.
In the upcoming years, the air cargo industry will continue to address challenges such as capacity constraints and potential changes in trade regulations. Overcoming these hurdles through collaborative efforts, innovative solutions, and strategic investments in infrastructure and technology will be essential for maintaining and accelerating the sector's growth.
