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Jet fuel becomes 121% expensive, yet demand for air freight is increasing in the world

May 28, 2026 by Uma Shankar

According to the April 2026 report of the International Air Transport Association, there has been an increase in the demand for air freight i.e. air cargo across the world. According to the report, global air cargo demand in April 2026 increased by 4 percent compared to last year. There was also a growth of 4 percent in international cargo business. However, a slight decline of 0.4 percent was recorded in the total cargo carrying capacity. Despite this, strong activity on Asian trade routes supported the air cargo sector.

Asia becomes the biggest growth engine

IATA Director General Willie Walsh said that the air cargo business remains strong due to trade routes connected to Asia. Especially the highest increase was recorded on Asia-Europe and Africa-Asia routes. Trade within Asia has also increased rapidly.

According to the report, Asia-Pacific Airlines recorded the highest increase of 10.5 percent. An increase of 6 percent was seen in Europe and 5 percent in North America. African airlines also increased by 7.7 percent.

impact of middle east conflict

The report said that due to the ongoing war in the Middle East, many major air cargo hubs have been affected. This forced many international trade routes to change and affected air cargo capacity. The biggest impact was seen on air cargo routes connected to Gulf countries. Demand among Middle East airlines declined by 18.2 percent, the biggest decline in the world. At the same time, a decrease of 2.8 percent was also recorded in Latin America and Caribbean region.

Fuel expensive, yet demand strong

According to the report, global trade declined by 2.1 percent in March 2026. Despite this, the strength of the manufacturing sector supported the demand for air cargo. However, jet fuel prices increased by a whopping 121 percent on an annual basis, while crude oil prices also increased by about 78 percent. Despite this, the air cargo business remains strong due to the global supply chain and the need for fast delivery.

About Uma Shankar

Uma Shankar writes about finance, business, and investment topics. He simplifies complex subjects like stock market, banking, tax, and cryptocurrency to help readers make informed financial decisions. Data-driven reporting is his strength.

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