Jaideep Mirchandani, Group Chairman of Sky One, says that the emphasis on air cargo infrastructure should continue to maintain the momentum

Although uncertainty persists regarding how trade tensions will unfold in the second half of the year, the latest monthly data from the International Air Transport Association (IATA) indicate that global air cargo demand increased by 2.2% year-over-year in May. Capacity also increased by two per cent, with the load factor edging up to reach 44.5 per cent.

While overall volumes showed improvement, IATA noted a 10.7 per cent decline in demand on the Asia-to-North America trade route. In contrast, lanes such as those between Asia and Europe and the Middle East and Asia saw marginal growth. In the APAC region, India is among the countries experiencing steady growth in air travel, particularly in the domestic segment. Globally, only Brazil has recorded stronger growth in the domestic market than India. India’s expanding aviation ecosystem is also laying the groundwork for a stronger air cargo network. Boeing projects that driven by the surge in e-commerce and increased domestic connectivity, India’s air cargo market could grow at an average annual rate of 6.9 per cent over the next twenty years.

We are also seeing focused measures from the Government of India that place efficient air cargo movement at the centre of its trade framework. Recent steps to modernise customs procedures include simplifying the temporary import process for Unit Load Devices (ULDs), waiving transhipment permit fees, and enabling online filings. These changes aim to improve operational efficiency, lower compliance costs and support the uninterrupted flow of cargo. Such initiatives will help bring India’s trade facilitation practices closer to international standards and expand the country’s air cargo sector’s footprint.

Major players in the air cargo sector are also continuing to invest in and expand their presence in India. Earlier this year, Bangalore International Airport, in collaboration with UK ground handler Menzies Aviation, unveiled a new domestic cargo terminal at Kempegowda International Airport. Spread across seven acres with a built-up area of 2,45,000 square feet, the facility is designed for scalable operations, with the capacity to handle up to 4,00,000 metric tonnes.

Meanwhile, the cargo division of Qatar Airways, which reports that nearly ten per cent of its global cargo revenue comes from India, has announced plans to expand its operations in the country. Growing demand for perishables, pharmaceuticals, e-commerce, and high-value goods is expected to shape the next phase of air freight expansion.

For international cargo movement, most carriers rely on the belly space of passenger aircraft. However, India’s existing bilateral air service agreements may limit the ability of foreign airlines to increase passenger operations freely, which could in turn affect the availability of cargo space on such flights.

India has set a target of handling 10 million metric tonnes of air cargo annually by 2030, up from the current 3.5 million tonnes. Meeting this objective will require expanding dedicated cargo terminals, increasing the number of freighter flights operated by Indian carriers, and strengthening supporting infrastructure and logistics networks. The government has already announced a new $150 million cargo complex at the upcoming Dholera International Airport in Ahmedabad, which is a timely move in this direction.

Beyond new facilities, it will be essential to upgrade existing infrastructure, including temperature-controlled zones for pharmaceutical shipments, reliable cold chain systems, efficient handling of express and high-value cargo, and simplified clearance procedures across major airports. These steps will be crucial in bringing India’s cargo handling capacity in line with its growth targets.

Starting August 16, Mumbai International Airport will suspend freighter operations to carry out a significant infrastructure upgrade. As India’s second-busiest cargo hub, the airport’s temporary shutdown, expected to last several months, is likely to impact overall cargo movement during this period. However, it should not disrupt the momentum currently seen in the Indian air cargo sector. Navi Mumbai Airport is expected to open before that period, and with focused planning, it has the potential to handle dedicated cargo operations efficiently and help bridge the interim shortfall. It is expected that the relevant authorities are already working to ensure a smooth and timely transition.