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Home Read a ride Aerospace

Airlines rake in billions as cargo demand soars 30% above pre-pandemic levels

David Ijaseun by David Ijaseun
March 24, 2025
in Aerospace, Business
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Air cargo is fast becoming a golden ticket for airlines, contributing between 5% and 10% of their total revenue. With e-commerce surging and traditional shipping routes disrupted, cargo demand in January 2025 rose 3.2% year-on-year, according to the International Air Transport Association (IATA). That’s 30% higher than pre-pandemic levels; proof the boom is far from over.

The biggest winners are airlines with robust cargo operations or partnerships, such as FedEx Express, Qatar Airways Cargo, and Emirates SkyCargo. These giants dominate the air freight market by capacity, measured in cargo ton kilometers. The Asia-Pacific region leads with 34.2% of global market share, followed by North America at 25.8% and Europe at 21.5%.

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Although air freight makes up less than 1% of global trade by volume, it accounts for approximately 35% of total trade value. This disparity highlights the critical role of air cargo in transporting high-value, time-sensitive goods such as medical supplies, electronic components, and luxury items. Speed remains its greatest advantage, making air freight a vital pillar of the global economy.

Passenger planes are also doubling as freighters. The Boeing 747-400, for example, can carry over 5,000 cubic feet of cargo along with hundreds of passengers. Combi variants push that figure to 10,000 cubic feet. Airlines charge between $2.50 and $5.00 per kg, with discounts for bulk or contract shipments, making every inch of belly space profitable.

This renewed focus on cargo has seen innovative partnerships flourish. Sun Country Airlines, for instance, now partners with Amazon Air to optimize logistics. Meanwhile, Emirates SkyCargo recently refreshed its livery and launched a marketing campaign positioning itself as more than a carrier—calling it a lifeline for essential global goods.

Despite higher labour costs and a shortage of skilled personnel, falling fuel prices and rising e-commerce activity continue to bolster profitability. Still, IATA warns of geopolitical risks, including possible tariff changes under the returning Trump administration, which could shake up international trade flows.

Looking ahead, IATA projects that by 2043, there will be nearly 3,900 dedicated cargo aircraft worldwide—many converted from passenger planes. About 2,800 of these will be new freighter deliveries, half replacing older models. Narrow-body jets like Boeing 737s and Airbus A320s will form a large share of this expansion, serving the growing demand for short- and mid-haul logistics.

Read more on Nigerian air cargo volume slides 6.7% in 2023 due to inflation, production costs

Tags: air cargoAround the worldcommercial airlinesHeadlineIATA

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