Menzies Aviation moved 620,000 tonnes of cargo across its global network in its most recent quarter, a 7% year-on-year increase, while aircraft turns rose 8% to 1.2 million, executive vice president of cargo Beau Paine has disclosed.

The ground services group now handles more than 2.4 million tonnes annually through 73 warehouses and 79 freighter-handling locations, spanning general cargo, pharmaceuticals, perishables, e-commerce and specialist shipments.

"Cargo volumes across our network have been positive overall during 2026, although performance has varied by region, facility and trade lane," Paine said.

How are regional flows diverging?

Demand has been strongest in markets benefiting from e-commerce, express, pharmaceutical and time-critical traffic, according to Paine. But the picture is uneven.

"Trade-policy changes, geopolitical disruption and constrained airspace have altered established cargo flows, while higher fuel costs and tariff uncertainty continue to affect capacity and customer decision-making," he said.

Internal Menzies analysis shows China and Hong Kong-to-Europe tonnage fell roughly 9% month-on-month in July, with Hong Kong volumes down around 19%. Menzies attributes the drop to the European Union's €3 charge on low-value imports, not to weakening underlying demand.

"The operational impact is more significant: the change increases the importance of accurate product-level information, tariff classification, duty processing, pre-arrival data validation and customs readiness," Paine said.

The shift toward e-commerce is reshaping warehouse operations. Paine noted handlers now process "millions of individual parcels rather than a smaller number of consolidated shipments," requiring parcel-level data, rapid customs processing, digital scanning and automated sorting.

Where is Menzies adding capacity?

Oceania has emerged as the principal investment focus.

• Western Sydney International Airport: 12,500 sq m facility, capacity for up to 200,000 tonnes annually, 24-hour operation adjacent to manufacturing and logistics clusters.
• Auckland: New Zealand's first dedicated airside cargo terminal, 32,000 sq m, serving 18 airline cargo partners, doubling the company's New Zealand footprint.
• Sydney: Three facilities with combined floor space exceeding 20,000 sq m and annual capacity of up to 250,000 tonnes, including the M1 site opened in 2025.

What role does technology play?

Menzies is scaling its MACH cargo management platform, now live at 50 airports, having processed more than 1.6 million air waybills and managing approximately 55% of network cargo tonnage.

In August, the company integrated PayCargo's Quick Pay service into the MACH customer portal, allowing shippers to view air waybill charges and complete payment digitally, reducing manual processes and accelerating cargo release.

At London Heathrow, Menzies is piloting AI-powered measurement and build-up technology that automatically captures pallet dimensions, weight, stackability and shipment references as cargo moves through the warehouse. The trial aims to improve data quality and decision-making from acceptance to aircraft loading.

Can handlers sustain investment through volatility?

Paine identifies volatility as the principal 2026 challenge.

"Geopolitical tensions, airspace restrictions, changing customs regimes, tariffs and higher fuel prices can quickly alter capacity, routing and demand," he said.

July jet fuel prices were 56.9% higher than a year earlier. Some Middle East-linked trade lanes contracted sharply despite continued global cargo demand growth.

At the same time, customers are demanding real-time visibility, faster truck turnaround, accurate data and predictable cargo release, sustaining pressure to invest while maintaining frontline resilience.

What is the forward outlook?

Paine sees growth tied to handlers integrating physical infrastructure with digital, customs and data capabilities.

"The companies best placed to succeed will be those that move beyond conventional warehouse handling and provide an integrated cargo ecosystem, combining physical infrastructure, forwarding, customs, digital visibility and data-driven operations," he said.

Whether Menzies can convert 7% volume growth and 55% MACH coverage into margin recovery will depend on jet fuel trajectories, the durability of EU low-value import rules, and whether e-commerce flows settle into a stable trade pattern or face further tariff-driven disruption.