Middle East Conflict Disrupts Global Air Cargo; Demand Slumps 4.8% in March 📈

Global air cargo markets faced a sharp contraction in March 2026, primarily driven by severe disruptions at major Gulf hubs due to regional conflict and seasonal post-Lunar New Year trends. • Overall Performance: Total global demand (CTK) fell by 4.8% YoY, while international demand dropped 5.5%. Global capacity (ACTK) also contracted by 4.7%. • Regional Breakdown: • Middle East: Suffered the steepest decline, with demand plunging 54.3% and capacity down 52.4%. • Asia-Pacific: Showed resilience with 5.4% growth in demand, supported by strong intra-Asia and Africa-Asia trade lanes. • Africa: Recorded the strongest growth at 7.0%, highlighting its emerging role in global logistics and trade. • Europe & Latin America: Saw modest growth of 2.2% and 1.8% respectively. • Economic Context: Despite the dip, global industrial production rose 3.1% and goods trade grew 8.0%. However, the industry faces significant pressure from a 106.6% YoY surge in jet fuel prices and a 320% spike in refining margins. • Outlook: While the Middle East crisis impacts key transit routes for Sri Lankan apparel & textiles and perishable exports, global manufacturing sentiment remains in expansion territory (PMI 51.4), suggesting underlying demand for supply chain flexibility remains robust.