Market Size of Air Freight Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 151.22 Billion |
| Market Size (2029) | USD 201.57 Billion |
| CAGR (2024 - 2029) | 5.92 % |
| Fastest Growing Market | Middle-East and Africa |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Air Freight Market Analysis
The Air Freight Market size is estimated at USD 151.22 billion in 2024, and is expected to reach USD 201.57 billion by 2029, growing at a CAGR of 5.92% during the forecast period (2024-2029).
The air cargo industry faced considerable challenges in 2022, primarily due to the ongoing conflict between Russia and Ukraine, which significantly reduced the volume of dedicated air cargo originating in Russia.
- According to the International Air Transport Association (IATA), in July 2023, the air cargo industry experienced a 20.7% increase from the previous month, maintaining steady growth since February 2023. However, compared to July 2022, the industry's cargo tonne kilometers (CTKs) decreased by 0.8%, placing it 0.3% below the July 2022 level and 3.7% lower than the pre-crisis level in 2019. This year-on-year increase in CTKs worldwide is partly due to the rise resulting from the lower base year in 2022.
- Throughout the historic shock of the pandemic, airlines have demonstrated remarkable innovation and agility, displaying resilience during this period. The financial profitability of airlines is within reach of the industry at large despite continued pressure on cost evolution from the macroeconomic environment. The substantial gap between jet fuel and oil prices limits airlines' ability to benefit from potential oil price declines, unlike other industries. Limited refinery capacity might sustain this issue into 2023. Tight labor markets lead to higher wages, and unsustainable pricing power within the downstream aviation value chain is likely to persist in 2023."
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