IATA's September 2019 data for global air freight
markets shows that demand, measured in freight tonne kilometers
(FTKs), decreased by 4.5%, compared to the same
month in 2018.
This marks the eleventh consecutive month of
year-on-year decline in freight volumes, the longest period since
the global financial crisis in 2008.
measured in available freight tonne kilometers (AFTKs), rose by
2.1% year-on-year in September 2019. Capacity growth has now
outstripped demand growth for the 17th consecutive month.
Air cargo continues to suffer from:
- the intensifying trade war between the US and
China, and South Korea and Japan;
- the deterioration in global trade; and
- weakness in some of
the key economic drivers.
Global export orders continue
to fall. The Purchasing Managers Index (PMI) tracking new
manufacturing export orders has pointed to falling orders since
ďThe US-China trade war continues to take
its toll on the air cargo industry. Octoberís pause on tariff
hikes between Washington and Beijing is good news. But trillions
of dollars of trade is already affected, which helped fuel
Septemberís 4.5% year-on-year fall in demand. And we can expect
the tough business environment for air cargo to continue,Ē said Alexandre de Juniac, IATA's Director General and CEO.
Airlines in Asia-Pacific, Europe, North America and the Middle
East suffered sharp declines in year-on-year growth in total air freight volumes in September 2019, while Latin America carriers
experienced a more moderate decline. Africa was the only region to
record growth in air freight demand compared to September last
Asia-Pacific airlines saw demand for air freight
contract by 4.9% in September 2019, compared to the same period in
2018. The US- China and South Korea-Japan trade wars along with the
slowdown in the Chinese economy have significantly impacted this region. More recently, the disruption to operations at Hong Kong
International Airport Ė the largest cargo hub in the world Ė added
additional pressure. With the region accounting for more than 35%
of total FTKs, this performance is the major contributor to the
weak industry-wide outcome. Air freight capacity increased by 2.7%
over the past year.
North American airlines saw demand
decrease by 4.2% in September 2019, compared to the same period a
year earlier. Capacity increased by 1.9%. The US-China trade war
and falling business confidence continue to weigh on the regionís
carriers. Freight demand has contracted between North America and
Europe and between Asia and North America.
posted a 3.3% decrease in freight demand in September 2019
compared to the same period a year earlier. Weaker manufacturing
conditions for exporters in Germany, softer regional economies,
and ongoing uncertainty over Brexit, have impacted the recent
performance. Capacity increased by 3.3% year-on-year.
Eastern airlinesí freight volumes decreased 8.0% in September 2019
compared to the year-ago period. This was the sharpest drop in
freight demand of any region. Capacity decreased by 0.4%.
Escalating trade tensions and the slowing in global trade have
affected the regionís performance due to its strategic position as
a global supply chain link. Most key routes to and from the region
have seen weak demand in the past few months. The large Europe to
Middle East and Asia to Middle East routes were down 8% and 5%
respectively in August (last data available) compared to a year
Latin American airlines experienced a decrease in
freight demand in September 2019 of 0.2% compared to the same
period last year and a capacity decrease of 2.9%. Despite
indications of a recovery in the Brazilian economy, deteriorating
conditions elsewhere in the region along with a slowing in global
trade have impacted the regionís performance.
carriers posted the fastest growth of any region in September
2019, with an increase in demand of 2.2% compared to the same
period a year earlier. This was a significant slowdown in growth
from the 8% recorded in August. Strong trade and investment
linkages with Asia and robust economic performance in some key
regional economies contributed to the positive performance.
Capacity grew 9.4% year-on-year.
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