Global air cargo demand edged up by 2.2% in May 2025 compared to the previous year, supported in part by a sharp drop in jet fuel prices, according to the International Air Transport Association (IATA). Jet fuel costs were down 18.7% year-on-year, providing cost relief across the aviation sector and helping carriers better manage weaker trade flows and regional slowdowns.

While international cargo volumes rose 3%, the benefit of lower fuel prices was offset by a notable 10.7% decline on the critical Asia, North America route; an area heavily affected by shifting U.S. trade policies and tighter customs regulations on e-commerce.

IATA’s Director General Willie Walsh pointed to the industry’s flexibility in flight scheduling and cargo routing as key to weathering ongoing volatility. He said that despite macroeconomic headwinds, the drop in fuel costs is helping operators stay competitive in a tough global environment.

Fuel pricing continues to be a central concern for air cargo operators, especially as manufacturing and export activity remain weak. Global manufacturing PMI slipped to 49.1 in May, and export orders continued to decline highlighting the fragility of goods movement.

Regionally, Asia-Pacific airlines saw the strongest demand boost at 8.3%, taking full advantage of lower fuel costs. Middle Eastern, Latin American, and European carriers also posted gains, while North American and African operators faced declining volumes even as capacity grew.

In summary, falling jet fuel prices are easing some pressure for air cargo carriers, but broader economic and trade challenges continue to weigh on overall performance.