Peak season arrives under pressure from the removal of the MD-11F from service following the crash of UPS Flight 2976 placing pressure on integrators who already face strains on capacity. IATA cargo data indicates a growing demand for air cargo matching indicators of a robust global economy. Asia in particular has a noted increase in demand, with trade to Europe and the Middle East driving growth.
Middle East governments has announced through the GCC an establishment of a new civil aviation authority operating in a similar fashion as EASA does in Europe. Airbus has released numbers reflecting lower delivery targets amid issues with the A320 family of narrow-body aircraft that have mostly received required modifications with limited service disruption.
Key Points:
• The GCC Supreme Council approved the establishment of the GCC Civil Aviation Authority, which will be headquartered in the United Arab Emirates.
• Airbus lowered its 2025 commercial aircraft delivery target to around 790 aircraft due to a supplier quality issue on A320 Family fuselage panels.
• Global air cargo demand grew by 4.1% year-on-year in October 2025, marking the eighth consecutive month of expansion and setting a new monthly record for volumes.
GCC Establishes Civil Aviation Authority
The Supreme Council of the Gulf Cooperation Council (GCC) approved the establishment of the GCC Civil Aviation Authority. The decision was made during the 46th session of the Supreme Council, which took place in the Kingdom of Bahrain on December 3, 2025. The Council determined that the new Authority will be headquartered in the United Arab Emirates. Similar to how EASA functions for Europe, this new Authority will aid in governing the growing global significance of major cargo hubs in Doha and Dubai and major air carriers operating growing cargo fleets.
Airbus Lowers 2025 Delivery Target Amid A320 Safety Measures
Airbus SE has updated its commercial aircraft delivery guidance for 2025, now targeting around 790 commercial aircraft deliveries. This change stems from a recent supplier quality issue on fuselage panels, which is impacting the delivery flow of its A320 Family. Despite the lower delivery target, Airbus maintained its financial guidance for the year. Concurrently, the company provided an update on precautionary measures deployed across the in-service A320 Family following an Alert Operators Transmission (AOT) published on November 28.
Airbus reported that the vast majority of the approximately 6,000 potentially impacted aircraft have received the necessary modifications. The company is actively working with airline customers to support the modification of the fewer than 100 remaining aircraft to ensure their return to service, citing a decision to put safety above all other considerations.
Global Air Cargo Demand Hits New Monthly Record
According to IATA data for October 2025, global air cargo markets experienced their eighth consecutive month of expansion. Total demand, measured in cargo tonne-kilometers (CTK), increased by 4.1% compared to October 2024 levels, setting a new monthly record for volumes. Capacity (ACTK) also rose by 5.1% year-on-year. This positive trend demonstrates air cargo’s role in enabling global supply chains to adapt to shifts like the impact of US tariffs.
This growth includes double-digit or near double-digit increases within Asia and between the Middle East/Europe and Asia. The sector enters the peak fourth quarter shipping season on the heels of robust global economic indicators, including 3.7% year-on-year growth in global industrial production in September.
