Middle Eastern air cargo capacity grew 1.5 per cent year on year in June, even as regional demand contracted by 3.2pc due to geopolitical tensions and airspace disruptions, reports Arab News.
The rise in available cargo space, measured in available cargo tonne-kilometres, came amid route disruptions over parts of Iran, Iraq, Israel, and Lebanon. These factors drove the region’s second consecutive monthly contraction in cargo volumes, according to the International Air Transport Association’s latest air cargo market report.
The performance reflects a broader slowdown in global air cargo, with IATA’s mid-year forecast projecting 0.7pc volume growth, down from 11.3pc in 2024.
The slowdown is attributed to rising protectionism, including new US tariffs and the rollback of de minimis exemptions on low-value imports, which could dampen e-commerce-related air freight.
“The June air cargo data made it very clear that stability and predictability are essential supports for trade,” said Willie Walsh, IATA’s director general.
“Emerging clarity on US tariffs allows businesses greater confidence in planning. But we cannot overlook the fact that the ‘deals’ being struck are resulting in significantly higher tariffs on goods imported into the US than we had just a few months ago,” he added.
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