Global air cargo demand increased 4.4% year on year in August 2026, with airlines benefiting from stronger trade and manufacturing activity even as capacity remained broadly flat and jet fuel costs climbed sharply.
The latest data from the International Air Transport Association (IATA) shows international cargo demand performing even more strongly, rising 5.3% compared with August 2025.
Capacity, measured in Available Cargo Tonne-Kilometres (ACTK), fell 0.1% globally, while international capacity edged up 0.1%.
The combination of stronger demand and constrained capacity helped improve cargo load factors, while yields increased month on month for the first time since April.
“Air cargo demand rose 4.4% year-on-year in August with all regions reporting growth even as capacity was trimmed by 0.1%,” said Marie Owens Thomsen, IATA’s senior vice president of sustainability and chief economist.
“Strong demand and higher load factors helped airlines to recoup some of the exceptionally high fuel costs. Yields rose month-on-month for the first time since April, while global goods trade growth continues. Both are positive signs as the year-end peak season comes into view.”
Trade and manufacturing underpin demand
The air cargo market is benefiting from a broader improvement in global trade activity.
Global trade increased 6.0% year on year in July, extending the run of consecutive monthly expansions to 33 months.
Manufacturing activity also strengthened in August. The Global Manufacturing Output Purchasing Managers’ Index (PMI) increased 0.3 points to 53.0, while the New Export Orders Index rose 1.4 points to 51.4.
Both indicators remained in territory supportive of air cargo demand, pointing to continued movement of manufactured goods and internationally traded products.
The improvement comes despite a challenging cost environment for airlines. Jet fuel prices rose 8.3% month on month in August and were 79.2% higher than a year earlier.
For cargo operators, stronger demand and improved yields therefore provide some relief against significantly higher operating costs.
North America leads regional growth
North American carriers recorded the strongest regional increase in air cargo demand, with CTK rising 6.6% year on year in August.
Capacity in the region declined 2.5%, creating a tighter supply-demand balance.
Latin American and Caribbean carriers followed with demand growth of 5.1%, while Asia-Pacific airlines recorded a 4.3% increase. Asia-Pacific capacity increased 1.2%.
European carriers reported 4.1% demand growth despite a 3.5% reduction in capacity.
The Middle East recorded the weakest regional growth at 1.0%, with capacity increasing 3.3%.
Africa also recorded growth, with demand increasing 3.0% year on year. However, the region added significantly more capacity, with ACTK rising 14.0%.
That imbalance contributed to a decline in the region's cargo load factor, which fell 3.9 percentage points to 36.5%.
Trade lanes reveal uneven recovery
While the overall market is expanding, the recovery is not uniform across international trade corridors.
The strongest growth came from the Asia–North America trade lane, where demand increased 13.2% year on year. The corridor has now recorded seven consecutive months of growth and represents 23.5% of industry CTK.
Within Asia, demand increased 6.1%, extending a run of growth to 34 consecutive months.
Europe–North America also continued to expand, with demand up 4.3% and four consecutive months of growth.
Europe–Asia increased 3.1%, marking 42 consecutive months of growth.
However, trade lanes connected to the Middle East remained under pressure amid disruption linked to the conflict in the region.
Europe–Middle East demand declined 12.1%, marking six consecutive months of contraction, while Middle East–Asia fell 11.0%, also its sixth consecutive month of decline.
Africa–Asia was another weak corridor, with demand down 11.9% and contraction extending to three consecutive months.
Capacity becomes a key factor
The August figures highlight how the relationship between demand and capacity is becoming increasingly important for cargo operators.
Globally, demand grew 4.4% while capacity declined marginally. In several major markets, airlines reduced available cargo capacity even as demand strengthened.
North America and Europe both recorded demand growth alongside capacity reductions, while Africa moved in the opposite direction, adding 14% capacity against 3% demand growth.
For airlines, freight forwarders and logistics businesses, the regional divergence creates different commercial conditions across markets and routes.
Higher demand can support yields where capacity remains constrained, while markets adding capacity faster than demand may face greater pressure on load factors and pricing.
Positive signal ahead of peak season
IATA's August data provides a relatively positive signal for the global air cargo market heading towards the year-end peak season.
The combination of expanding global trade, improving manufacturing indicators and rising cargo yields suggests that demand remains resilient despite higher fuel costs and geopolitical disruption.
At the same time, the uneven performance across regions and trade lanes highlights the importance of capacity management and route selection as airlines navigate the final months of 2026.
For Africa in particular, the sharp increase in capacity compared with more modest demand growth will be an important dynamic to watch as carriers seek to translate growing connectivity into sustainable cargo volumes and stronger commercial returns.
