International air cargo growth slows down at major airports
Last year airports in Bengaluru, Delhi and Hyderabad registered growth of upwards of 20%, but this time around, growth ranged between 1.7% to 2.1%
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baranozdemir
International air cargo growth at major Indian airports has moderated to low single digits in the April-July period, after registering strong double-digit gains during the same period last year, data compiled by the Airports Authority of India (AAI) shows..
Houthi-rebel attacks on vessels in the Red Sea forced shipping lines to take de-tours, leading to congestion at ports. The crisis also led to a shift of cargo volume from the sea mode to air, as exporters worked to keep up with their trade commitments. This benefitted airlines and airports in India, leading to strong cargo volumes last summer. In the absence of this tailwind, international cargo growth at major airports has moderated to single digits again.
On an overall basis, international air cargo volume at Indian airports rose 4.5 per cent in the April-July period, compared to 19.9 per cent growth in the same period last year.
Last year airports in Bengaluru, Delhi and Hyderabad registered growth of upwards of 20 per cent, but this time around, growth ranged between 1.7 per cent to 2.1 per cent. Mumbai reported growth of 3.9 per cent. The only exception was Chennai, which saw a 17.1 per cent year-on-year gain in international cargo during April-July.
“Shippers have now adjusted to new shipment routes via the Cape of Good Hope and congestion at sea has also eased, compared to last year. As a result, the urgency to rely on air has reduced. What we are witnessing is not a decline, but a normalisation, where ocean freight regains its share for non-critical shipments and air freight returns to its regular volumes,” said Deepak Kumar, national air logistics manager (India, Sri Lanka, Maldives), Kuehne + Nagel, a leading global logistics company.
Withdrawal of trans-shipment facilities to Bangladesh’s exports, too, has impacted the growth, especially at Delhi and Kolkata airports.
In April, the Central Board of Indirect Taxes and Customs issued a circular, rescinding the facility to export cargo from Bangladesh. The move followed demands from domestic apparel exporters and came amid a strain in India-Bangladesh ties.
Withdrawal of transshipment facilities to Bangladesh’s exports, too, has impacted the growth especially at Delhi and Kolkata airports.
In April, the Central Board of Indirect Taxes and Customs issued a circular rescinding the facility to export cargo from Bangladesh. The move followed demands from domestic apparel exporters and came amid a strain in India-Bangladesh ties.
“Domestic market has performed reasonably well but the international market has been soft compared to last year,” said Yashpal Sharma, Chairman of Skyways group, a freight and logistics company. Sharma cited Bangladesh trans-shipment ban, geopolitical issues and US tariff as reasons for slower growth in international cargo.
Queries sent to Bengaluru, Delhi, Hyderabad and Mumbai airports went unanswered.
India’s merchandise exports grew 2.5 per cent in the April–August period, according to the latest data released by the Ministry of Commerce. Exports to the US grew 18 per cent on a year-on-year basis. However, on a month-on-month basis, exports to the US declined by 14 per cent, with the imposition of additional 25 per cent tariff on Indian goods.
“Typically, international air cargo volume picks up sequentially post August, led by export shipments. This time though, volume growth will be muted due to uncertainty caused by US tariffs. Many exporters are in a wait-and-watch mode, anticipating removal of the extra 25 per cent US tariffs and early conclusion of a trade deal,” said Manoj Singh, a senior air cargo professional.
Published on September 16, 2025
