Middle East Conflict Weighs on Air Cargo as IATA Flags Fuel Crisis

(MENAFN) The air cargo industry is facing mounting pressure from the ongoing conflict in Iran and escalating regional instability across the Middle East, the International Air Transport Association (IATA) cautioned on Monday.

Willie Walsh, the association's director general, flagged a confluence of deepening threats to global freight operations in an official press release.

"Sharply rising fuel costs, fuel scarcity in parts of the world, and the severe disruption to key cargo hubs in the Gulf are major shifts," Walsh said.

Despite the turbulence, IATA data showed global air cargo demand surging 11.2% year-on-year in February — a robust figure now overshadowed by geopolitical uncertainty. Walsh acknowledged that the war's escalation makes it nearly impossible to forecast how the industry will close out the full year.

Jet fuel costs climbed 1.2% year-on-year in February, with a widening Brent–jet fuel crack spread signaling persistent volatility in refining margins — adding further strain to an already pressured supply chain.

Walsh struck a cautiously optimistic tone while underscoring the stakes for the broader global economy.

"While air cargo has repeatedly proven its resilience in the face of disruption, an early resolution of the war along with a normalization of fuel supply and costs would be in everybody's interest," he said.

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