The skies are shifting. After years of volatility and disruption, the global air cargo market is witnessing a powerful resurgence. The year 2024 marked a significant turning point: worldwide air cargo demand, measured in cargo tonne-kilometers (CTKs), grew by 11.3% year-on-year, surpassing even the record volumes of 2021. In December alone, demand rose by 6.1%, underscoring a sustained and broad based recovery.
This growth has been largely fuelled by the explosive rise of cross-border e-commerce, ongoing disruptions in ocean freight routes, particularly through the Red Sea, and a surge in the transport of high-value goods such as electronics, pharmaceuticals, and perishables.
As manufacturers diversify supply chains and shippers seek faster, more resilient delivery channels, air cargo is no longer viewed merely as a premium fallback but as a strategic necessity. The narrowing cost differential between air and ocean freight has further accelerated this reconfiguration of global logistics flows.
At the heart of this transformation lies the Asia Pacific region, which is not just participating in the rebound but leading it. According to IATA, in 2024, Asia-Pacific airlines recorded an impressive 14.5% year-on-year growth in air cargo demand. The momentum has continued into 2025. Structural shifts such as China-plus one strategies, rising intra-Asia consumption , and ongoing investments in logistics infrastructure are turning the region into the epicenter of global air cargo activity.
Amid this momentum, India is carving out a pivotal role. It no longer is a peripheral player, the country is fast emerging as a strategic node on the global air cargo map. With focused investments in cargo infrastructure, policy reforms like PM Gati Shakti, and rising exports in key sectors such as pharmaceuticals, electronics, and perishables, India is steadily building both capacity and credibility. The result is increased visibility in international supply chains and a growing influence in shaping the future of global air logistics.
Let’s take a deeper dive and explore how the Asia Pacific region is redefining global air cargo flows, the emergence of new and revitalized hubs, and how India is positioning itself at the heart of this shift.
Asia-Pacific: The New Powerhouse
The Asia-Pacific region has firmly established itself at the centre of the global air cargo revival. Building on the momentum from 2024, global air cargo demand in 2025 registered a 3.2% increase in cargo tonne-kilometers (CTKs) in January, followed by a 4.4% rebound in March. While February saw a marginal 0.1% dip, partly due to the leap year base effect, the overall trajectory remains upward. By April 2025, demand strengthened further, recording a 5.8% year-on-year increase.
Amid this resurgence, Asia-Pacific carriers are leading the charge. According to IATA’s March 2025 Air Cargo Market Analysis, the region posted a 9.6% year-on-year growth in CTKs, nearly matching North America’s 9.5 % and well ahead of Latin America (5.8%) and Europe (4.5%). More importantly, this performance reflects a long-term structural transformation rather than a transient post-COVID rebound.
“2025 marks a turning point for global air cargo, with industry revenues expected to surpass USD 1 trillion. Asia-Pacific’s resurgence is not merely cyclical—it signals a structural shift,” says Dr. Stéphane Graber, Director General of International Federation of Freight Forwarders Associations (FIATA). “Supply chains are evolving toward resilience and diversification, with stronger intra-Asia traffic and the proliferation of regional production-consumption loops.”
What’s driving the Resurgence?
This momentum is powered by more than just recovery; it’s reinvention. The China-plus-one strategy has dispersed manufacturing activity into economies like Vietnam, India, and Indonesia, creating new export corridors and demand for outbound freight.
“India’s ‘Make in India’ initiative continues to accelerate its emergence as a manufacturing powerhouse,” says Mark Sutch, Chief Commercial Officer—CarGo International, IndiGo. For the airlines, “this resurgence is being driven by sustained manufacturing output, strong e-commerce momentum, and increased demand for speed and reliability in supply chains.”
At the same time, cross-border e-commerce, especially B2C flows, has been a major catalyst.
“A significant contributor is the booming e-commerce sector, particularly from China to Western markets,” notes Yukki Nugrahawan Hanafi, FIATA Region Asia Pacific Chair and Vice President Director of Interport Group. “Rapid delivery expectations are increasing reliance on air freight. Additionally, companies are reconfiguring supply chains to reduce overdependence on single-country sourcing— especially in response to geopolitical tensions— by adopting a “China+1” strategy that favours Southeast Asian manufacturing hubs. This diversification is making logistics more complex and boosting demand for the speed and flexibility of air cargo.”
Some growth is also being pulled forward due to trade policy changes. The removal of the U.S. de minimis tax exemption has triggered preemptive shipping activity from exporters across Asia.
“Exporters adjusted their strategies by accelerating shipments to avoid added costs, which may have contributed to a temporary spike in volumes,” adds Dr. Stéphane speaking on those lines, Ashish Asaf, Group Managing Director & CEO, S.A. Consultants & Forwarders Pvt. Ltd., suggests that “We might not call it real growth; the uncertainty surrounding US tariffs was seen as short-term positive for air cargo growth.”
He highlights that India’s Purchasing Managers’ Index (PMI) reflected this momentum
“Indian exporters would have shipped goods in advance to avoid tariff-related challenges,” says Ashish. “India’s PMI climbed to 60.0 in April—the strongest in 8 months.”
This policy-induced bump aside, intra-Asia trade continues to grow rapidly, as Asia becomes both a manufacturing engine and a rising consumption centre.
Short-haul air freight within the region is increasing, creating dense and efficient regional trade loops.
“Intra-Asia traffic has benefited from the volatile situation regarding exports to the USA,” observes Glyn Hughes, Director General, TIACA. “And overall ecommerce volumes remain healthy, although destinations may shift in response to de minimis policy changes.”
Meanwhile, Asia-Pacific airports are investing heavily in logistics infrastructure. Upgrades in freighter terminals, customs digitization, AI based tracking, and multimodal integration are transforming hubs into smart, high-efficiency cargo ecosystems.
