Air France-KLM Cargo reported an increase in cargo volumes in the first quarter, even as revenues declined, highlighting continued pressure on pricing in the global air freight market.
The airline group said higher shipment volumes were driven by steady demand across key trade lanes, including industrial goods, pharmaceuticals, and e-commerce-related cargo. However, weaker freight rates offset the volume growth, resulting in lower overall cargo revenues for the quarter.
The performance reflects a broader industry trend where air cargo demand has remained relatively stable, but yields have come under pressure due to increased capacity, shifting trade flows, and competitive pricing among carriers.
Air France-KLM Cargo operates a combination of dedicated freighter services and belly capacity on passenger aircraft, giving it flexibility to adjust to changing market conditions. Despite strong operational volumes, pricing dynamics continue to be a key challenge across the sector.
Industry analysts note that global air freight markets are still adjusting to post-pandemic normalization, with fluctuations in demand and capacity leading to uneven revenue outcomes for carriers.
Looking ahead, cargo performance will depend on rate stabilization, fuel cost trends, and demand recovery in major export-driven economies, particularly in Asia and Europe.
The results underscore a widening gap between volume growth and revenue performance in the air cargo sector, as carriers navigate a competitive and price-sensitive environment.
