Tensions in Middle East hits air cargo demand in March

Air cargo demand went down by 4.8% in March on a yearly basis, mostly due to severe disruptions at major Gulf hubs due to war in the Middle East, the International Air Transport Association (IATA) announced on Wednesday.

"The underlying demand trends, at this point, appear strong and the recent World Trade Organization and International Monetary Fund revisions to trade and GDP projections continue to see growth in 2026," the association said in a press release.

The air cargo demand in the Middle East region saw a 54.3% year-on-year decrease in March, the weakest performance of all regions.

It said that importantly, air cargo networks are providing the flexibility needed to support global supply chains as they adjust to geopolitical, tariff, and operational strains.

"All eyes are on fuel supply and price, which are expected to test the industry's resilience in the coming months," said Willie Walsh, IATA's Director General.

The association said jet fuel prices doubled in March on a yearly basis, up 106.6%, alongside a 43.1% increase in crude oil prices and a 320% surge in refining margins.