IATA's data for global air freight markets in
July 2016 shows a robust growth in demand.
Measured in freight tonne kilometers (FTKs), demand increased 5.0% in July 2016,
compared to July 2015. This was the fastest pace in almost 18
months. Freight capacity measured in available freight tonne
kilometers (AFTKs) increased by 5.2% year-on-year, outstripping
demand and keeping yields under pressure.
Despite the subdued global trade backdrop,
carriers in the world's four biggest air cargo markets -
Asia Pacific, Europe, North America and the Middle East - reported
an increase in freight demand. The strongest growth occurred in
Europe and the Middle East, with July demand up by 7.2% and 6.7%
respectively, compared to the same period last year.
was a positive month for air freight—which is an all too rare
occurrence. Despite that, we must recognize that we face some strong headwinds on fundamental aspects of the business. Global
trade growth is sluggish and business confidence is weak. And the
political rhetoric on both sides of the Atlantic is not
encouraging for further trade liberalization," said Alexandre de
Juniac, IATA’s Director General and CEO.
Asia Pacific airlines reported a 4.9% increase
in demand for air cargo in July compared to last year. In
particular, growth has been driven by strong increases in the
large ‘within Asia’ market in recent months, but the latest
business surveys from the region paint a mixed picture. Capacity
in the region expanded 2.7%.
North American carriers saw
freight volumes expand 4.1% in July 2016 compared to the same
period last year, and capacity increase by 3.4%. International
freight volumes (which grew 1.3% in July) continue to suffer from
the strength of the US dollar which has kept the US export market
European airlines posted the largest
increase in freight demand of all regions in July, 7.2%
year-on-year. Capacity increased 3.8%. The positive European
performance corresponds with an increase in export orders in
Germany over the last few months. Europe’s freight volumes have
now surpassed the level reached during the air freight rebound
following the Global Financial Crisis. The only other region to
achieve this is the Middle East.
Middle Eastern carriers
saw air freight demand increase by 6.7% in July 2016 year-on-year.
Capacity increased by 11%. The region’s growth rate, while still
strong, has eased to half the 14% recorded annually between 2012
and 2015. This is mainly attributable to slower freight growth
between the Middle East and Asia.
Latin American airlines
saw demand contract by 5.6% in July 2016 compared to the same
period last year and capacity increase by 10.1%. The region
continues to be blighted by weak economic and political
conditions, particularly in the region’s largest economy, Brazil.
African carriers recorded a 6.8% decrease in year-on-year
freight demand in July 2016 – the largest decline in seven years.
African airlines’ capacity surged by 31.3% on the back of
long-haul expansion (from a small base).
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