Air moves along their tracheae and tracheoles by diffusion, reaching all the tissues. Vast number of tiny tracheoles give a very large surface area for diffusion. Oxygen dissolves in moisture on the walls of the tracheoles and diffuses into into the surrounding cells. Towards the end of the tracheoles there is tracheal fluid, which limits the penetration of air for diffusion. When oxygen demands build up, for example when the insect is flying, a lactic acid build up in the tissues results in water moving out of the tracheoles by osmosis. Exposing more surface area for diffusion.