TÜRKİYE’S GROWING INFLUENCE IN AIR CARGO TRANSPORTATION

Positioned at the crossroads of speed, reliability, and digitalisation, air transportation is taking its place at the heart of global logistics due to Istanbul’s leadership, the boost from e-commerce, and Türkiye’s strategic location

Air transportation has become one of the most favoured and fastest-growing logistics modes, due to its speed and reliability. The demand for speed brought on by globalisation, along with disruptions in logistics routes due to wars and climate change, are among the key forces fueling this rapid expansion. As the global economy has become more interconnected, customers now expect faster and more reliable deliveries. This shift has increased the reliance on air transport for perishable goods, intensified competition in the freight space, and helped air cargo evolve. That said, air transport still holds the title for the highest unit cost among transport modes.

Despite this downside, today’s intense international competition is speeding up the progress of this sector. The presence of modern airports, advanced aircraft, expanded capacity, and advanced warehousing systems has made air transport widely accessible.

Türkiye provides quick access to a population of 1.3 billion and a market worth USD 28 trillion, spanning Europe, the Middle East, North Africa, and Central Asia within a four-hour flight radius. Its strategic location also enables same-day access to markets across 16 time zones, from Tokyo to New York. This makes it a highly effective and cost-efficient logistics hub for major global markets.

Furthermore, Türkiye’s proximity to large economies and its position along key routes make it a compelling option for investors seeking to shorten transit times and boost logistics performance. Türkiye’s geographical edge firmly places it as a central link in the global logistics network. In fact, data shows that in 2023, 9.9 per cent of Türkiye’s exports and 14.8 per cent of its imports were handled by air.

ISTANBUL TAKES THE LEAD IN CARGO LOGISTICS

According to 2024 European air traffic data released by Airports Council International Europe (ACI EUROPE), Istanbul Airport moved 1.97 million tons of freight and surpassed Frankfurt, previously recognised as Europe’s leading cargo hub, to claim the top spot. Thus, it earned the title of Europe’s largest cargo airport and became one of the most important hubs not only in Europe but globally as well.

In this context, in April, the ICAO Global Air Cargo Summit, organised by the Directorate General of Civil Aviation and the International Civil Aviation Organisation (ICAO) with support from UTİKAD, brought nearly 700 participants from 80 countries to Antalya. At the summit, discussions highlighted a move within ICAO to give air cargo a distinct and elevated status. In previous years, air cargo volumes were around 2.4 million tons. This year, that number has reached close to 2.7 million tons. Overall, Istanbul is considered an ideal transit point due to its strategic location. The expansion of Istanbul Airport as a cargo distribution hub is continuing at a rapid pace.

E-COMMERCE DRIVES AIR CARGO FORWARD

E-commerce stands out as a key factor in the growth of air cargo transportation. Despite ongoing trade tensions, e-commerce is expected to keep growing and to open up a wide range of opportunities for the air freight industry. Among all drivers, e-commerce is delivering the most noticeable growth in air cargo. It currently makes up about 20 per cent of the cargo industry, but it is projected to represent at least one-third of all cargo shipments. By 2027, the e-commerce market is forecasted to reach USD 8 trillion in value. The “Outlook of E-commerce in Türkiye” report, prepared by the Ministry of Trade, was recently released.

According to the report’s findings, Türkiye’s e-commerce sector showed remarkable growth in 2024, surpassing the TRY 3 trillion mark. Nearly 6 billion transactions were recorded across more than 600 thousand businesses. With government incentives to boost e-export, the share of e-export in total exports rose to 2.9%, reaching an annual level of USD 8 billion. These growth figures show that the digital economy has now become a lasting and influential part of Türkiye’s economic structure. By 2024, Türkiye’s e-commerce volume had grown by 61.7 per cent year over year, reaching TRY 3 trillion 162 million. Retail e-commerce also saw a 63.7 per cent increase compared to 2023, hitting TRY 1 trillion 619 billion. In dollar terms, total e-commerce volume rose by 15 per cent to USD 90 billion.

Retail e-commerce volume in dollar terms stands at approximately USD 17 billion. The total number of e-commerce transactions in Türkiye last year was 5 billion 910 million, and the number of retail e-commerce transactions was 1 billion 850 million. As of 2024, e-commerce’s share in Gross Domestic Product (GDP) reached 6.5%. The data reveal that e-commerce has become a major sector contributing directly to GDPİ

GLOBAL RISKS, NEW OPPORTUNITIES, AND ENVIRONMENTAL RESPONSIBILITIES

According to the International Air Transport Association (IATA), supported by e-commerce and activity in the Red Sea, air cargo volume is projected to grow by 5.8 per cent in 2025 compared to the previous year, reaching 72.5 million tons. However, the tariffs and trade wars announced by United States President Donald Trump could put downward pressure on demand for air cargo. Continued conflict in Europe and the Middle East may also cause shifts in oil prices. Although demand is expected to continue rising, average yield is projected to undergo a downward correction of 0.7%, but it is still anticipated to remain well above pre-pandemic levels.

According to IATA forecasts, the growth rate of air cargo volume is expected to be halved in 2025. Due to ongoing issues in maritime transportation, air cargo is likely to remain a preferred option this year. At this point, the e-commerce sector and Istanbul Airport are playing a significant role in advancing air cargo transport. In the sector’s ongoing efforts, investments and initiatives related to long-term environmental sustainability, waste reduction, carbon emission reduction, and resource efficiency are of critical importance. As UTİKAD, we closely follow developments in the sector through all our working groups.

In the UTİKAD Air Working Group, briefings are provided on the operational practices and innovations of airlines and ground service providers, ICS2 regulations, evaluations regarding Istanbul Airport becoming a hub in cargo transportation, legislative changes, international sectoral meetings, and changes in the United States TSA ACAS regulations. In the UTİKAD Micro Logistics and Digitalisation Working Group, evaluations are conducted on elements that will increase the efficiency of our airports in e-commerce, monitoring of developments related to e-commerce, legislative changes regarding postal and express cargo, updates on the current state of e-commerce in our country and tracking of recent developments in innovation and digitalisation. We also guide the future by contributing to the industry through guides prepared with the support of our working group members and reports published by UTİKAD.