Middle Eastern airlines are experiencing a significant surge in air cargo growth, driven by a recovery in global trade and disruptions in maritime logistics. According to the International Air Transport Association’s (IATA) latest report, the region’s airlines registered a 9.4% increase in air cargo volumes in recent months, reflecting a robust demand across key trade routes, including those connecting Africa and the GCC countries.
E-commerce and Perishables Fuel Demand
A major factor contributing to this growth is the booming e-commerce sector, which continues to see a significant uptick in the Middle East and beyond. The rise in online shopping, coupled with the need for rapid delivery of goods, has boosted air cargo demand. Additionally, the transportation of perishables, pharmaceuticals, and high-value goods continues to play a pivotal role in the industry’s expansion.
Willie Walsh, IATA’s director general, noted that, with the peak season on the horizon, the year was expected to be particularly robust for air cargo. He highlighted that airlines had shown their capacity to adapt to political and economic uncertainties, responding flexibly to emerging demand trends.
“Air cargo demand hit record highs year-to-date in July with strong growth across all regions. The air cargo business continues to benefit from growth in global trade, booming e-commerce and capacity constraints on maritime shipping. With the peak season still to come, it is shaping to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to flexibly meet emerging demand trends,” said Walsh.
Maritime Disruptions Provide an Opportunity
The ongoing disruptions in maritime shipping, including port congestion and container shortages, have further highlighted the reliability of air cargo as an alternative. Preliminary July traffic figures released by the Association of Asia Pacific Airlines (AAPA) reveals a 12.3% year-on-year increase in international air cargo demand, measured in freight ton kilometers (FTK), while capacity grew by 11%. This has been particularly beneficial for airlines in the Asia-Pacific region, as highlighted by Subhas Menon, director general of the Association of Asia Pacific Airlines (AAPA). Speaking of the first seven months of the year, Menon recently stated that, “International air cargo demand rose by 15.6% year-on-year, in contrast to the depressed levels seen in the same period last year”.
The Middle East, with its strategic location and advanced logistics infrastructure, has capitalized on these disruptions to strengthen its position as a global cargo hub. This is evident in the increased cargo throughput at major airports.
Middle East Airlines Navigate Challenges and Opportunities
Despite the positive growth trajectory, Middle Eastern airlines face challenges, including fluctuating fuel prices, regulatory constraints, and competition from other regions. However, the airlines are proactively investing in technology and enhancing their cargo capabilities to remain competitive. This includes the adoption of digital solutions for tracking and managing shipments, as well as expanding their fleets with more cargo-friendly aircraft.
Looking ahead, the outlook for air cargo in the Middle East remains optimistic. The region’s strategic investments in infrastructure, combined with growing demand from emerging markets in Africa and Asia, position it well to sustain and build upon the recent growth.
The Road Ahead for Air Cargo in the Middle East
As the global economy continues to recover, Middle Eastern airlines are poised to benefit from sustained cargo demand. The integration of e-commerce with traditional supply chains, along with the ongoing challenges in maritime logistics, will likely keep air cargo as a preferred mode of transport for many businesses.
With continued focus on innovation and efficiency, Middle Eastern airlines are not only navigating current challenges but are also setting the stage for future growth in the cargo sector. This positions them well to meet the evolving needs of global trade, linking key markets in Africa, Asia, and beyond.
For more trade news, visit our dedicated archives.