Global air cargo demand increased 4.4% in August compared with the same month last year, while available capacity declined slightly, according to new data from the International Air Transport Association (IATA).

Demand, measured in cargo ton-kilometers, increased 5.3% for international operations. Meanwhile, global cargo capacity decreased 0.1%, pushing the worldwide cargo load factor up two percentage points to 46%.

The figures point to tightening capacity as the air cargo industry approaches its year-end peak shipping season.

North American carriers recorded the strongest regional growth, with demand increasing 6.6% year over year despite a 2.5% reduction in capacity. European carriers experienced a similar trend, with demand rising 4.1% while capacity declined 3.5%.

Asia-Pacific airlines reported a 4.3% increase in demand and a 1.2% increase in capacity. Latin American and Caribbean carriers saw demand grow 5.1%, while African carriers recorded 3% growth. Middle Eastern carriers experienced the slowest growth at 1%.

"Strong demand and higher load factors helped airlines to recoup some of the exceptionally high fuel costs," said Marie Owens Thomsen, IATA's senior vice president of sustainability and chief economist.

She noted that cargo yields increased month over month for the first time since April, while global goods trade continued to expand.

Growth varied significantly across major international trade lanes. Asia-North America recorded a 13.2% increase in demand, marking its seventh consecutive month of growth. Europe-North America traffic increased 4.3%, while Europe-Asia demand rose 3.1%.

In contrast, Europe-Middle East cargo traffic declined 12.1%, reflecting continued disruptions to Gulf-linked trade routes.

The broader economic environment remained supportive of air cargo activity. Global trade increased 6% year over year in July, extending its run of annual growth to 33 consecutive months. Global manufacturing activity also strengthened in August, with both manufacturing output and new export orders indexes increasing.

However, rising fuel costs continued to pressure airlines. Jet fuel prices increased 8.3% from July and were 79.2% higher than a year earlier.

For cargo handlers and ground operations providers, the combination of rising demand and constrained capacity highlights the importance of efficient aircraft turnarounds, cargo processing and equipment availability as the industry prepares for its busiest shipping period.