Indian Air Cargo Set To Hit Record Volumes In FY25, Growing 9-11% : Icra

India’s air cargo volumes are expected to achieve new highs in FY2025, with projected growth of 9-11 per cent year-on-year, reaching around 3.6-3.7 million tonnes, according to  Icra. This growth will be driven by an 11-13 per cent expansion in international cargo volumes and a 4-6 per cent rise in domestic cargo.

Despite global economic challenges and geopolitical tensions, such as the Red Sea crisis that began in October 2023, the international cargo segment saw a robust recovery, growing by 18 per cent in the second half of FY2024. 

The crisis caused disruptions in seaborne trade, shifting more cargo to air transport, which contributed to the air cargo volume surge.

Vinay Kumar G, Vice President and Sector Head, Corporate Ratings,  Icra, noted, "Cargo volumes proved more resilient to the Covid-19 pandemic than passenger traffic and recovered faster. While growth slowed during FY2023 and early FY2024, the international segment has rebounded strongly, with a 20 per cent year-on-year rise during the first five months of FY2025. We expect international cargo volumes to continue growing by 11-13 per cent in FY2025, touching record levels."

The continued growth in India's air cargo volumes will be driven by shifting global supply chains, a rise in export demand, and increased air traffic in response to geopolitical disruptions.