Travel Industry News at TravelNewsAsia.com since 1997. Interviews, podcasts, videos, pictures and more
Wed, 1 July 2020

Air Cargo Down 20% in May, Capacity Down 34.7%

IATA's data for global air freight markets in May shows a slight improvement on April, but capacity remains unable to meet demand as a result of the loss of belly cargo operations on passenger aircraft that have been parked.

Global demand, measured in cargo tonne-kilometers (CTKs), fell by 20.3% in May (-21.5% for international operations) compared to the previous year. That is an improvement from the 25.6% year-on-year drop recorded in April.

Global capacity, measured in available cargo tonne-kilometers (ACTKs), shrank by 34.7% in May (-32.2% for international operations) compared to the previous year, a slight deceleration from the 41.6% year-on-year drop in April.

Belly capacity for international air cargo shrank by 66.4% in May compared to the previous year due to the withdrawal of passenger services amid the COVID19 crisis. This is up slightly from the 75.1% year-on-year decline in April and was partially offset by a 25.2% increase in capacity through expanded use of freighter aircraft.

Cargo container onboard a Qatar Airways Boeing 747F. Picture by Steven Howard of TravelNewsAsia.com Click to enlarge.

The cargo load factor (CLF) rose 10.4 percentage points in May. This was a slight decrease from the 12.8 percentage point rise in April. However, the extent of the increase suggests that there is still pent-up demand for air cargo which cannot be met due to the continued grounding of many passenger flights.

Global export orders continue to fall but at a slower pace. The Purchasing Managers Index (PMI) tracking new manufacturing export orders improved from the trough seen in April despite remaining in contractionary territory.

Air cargo demand is down by over 20% compared to 2019. And with most of the passenger fleet grounded capacity was down 34.7%, said Alexandre de Juniac, IATA's Director General and CEO. "The gap between demand and capacity shows the challenge in finding the space on the aircraft still flying to get goods to market. For that the prospects for air cargo remain stronger than for the passenger business but the future is very uncertain. Economic activity is picking up from April lows as some economies unlock. But predicting the length and depth of the recession remains difficult."

All regions suffered declines in May. Airlines in Europe and Latin America suffered the sharpest drops in year-on-year growth in total air freight volumes, while airlines in Asia-Pacific and the Middle East experienced slightly less dramatic declines. Airlines in North America and Africa saw more moderate drops compared to the other regions.

Asia-Pacific airlines saw demand for international air cargo fall by 21.3% in May 2020 compared to the same period a year earlier. This was a solid improvement over the 25.2% drop in April. Seasonally adjusted freight volumes also rebounded slightly in May and have now reached 75% of their pre-COVID19 crisis levels. Shipments of personal protective equipment (PPE) are helping support airlines in the region. International capacity decreased 31%.

North American carriers reported a single digit fall in international cargo demand of 9.0% year-on-year in May. This was the smallest contraction of all regions except Africa. The resilient performance is due to shorter and less stringent lockdowns in certain regions, the large freighter fleets of a few regional airlines as well as robust US-China trade volumes. Demand on the large AsiaNorth America route was down only 0.4% year-on-year in May. International capacity decreased 28%.

European carriers reported a 29.7% annual drop in international cargo volumes in May, the weakest performance of all regions. Limited manufacturing output and lockdowns through to mid-May contributed to the weak performance. International capacity decreased 40.1%.

Middle Eastern carriers reported a decline of 25% year-on-year in May, a significant improvement from the 36.2% fall in April. Despite a number of carriers in the region maintaining some cargo capacity, traffic on all key routes was low. International capacity decreased 24.4%.

Latin American carriers posted a 22.1% drop in year-on-year international demand. This was a significant improvement from the 40.7% decline in April. The COVID-19 crisis is particularly challenging for airlines based in Latin America owing to strict lock-down measures. International capacity decreased 39.5%.

African airlines posted the smallest contraction of any region in May, extending a run of resilient performance. Africa has now ranked in the top two regions for 15 consecutive months. Year-on-year international demand fell by 6.3%. The small Africa-Asia market was particularly resilient in May, down only 0.4%. International capacity decreased 37.7%.

See latest Travel News, Video Interviews, Podcasts and other news regarding: COVID19, IATA, Cargo, Freight.

Headlines: Cebu Pacific Begins COVID19 Test Before Boarding Trial in Philippines  Ryanair Orders 75 More Boeing 737 MAX Aircraft  Government Supports Hong Kong's Airport City Development Plans  Air New Zealand to Add 16,000 Seats to Domestic Schedule  Qantas Launches Three New Routes Between Tasmania and Mainland  The Ven at Embassy Row in Washington DC to Open in January  Whitbread Opens 274-Room Premier Inn Hotel in Southwark, London  Smiths Detection to Supply TSA with Explosives Trace Detection Systems  Annie Torkia Lagacé Joins Bombardier as SVP and General Counsel  IHG Signs Franchise Agreement for Third Crowne Plaza Hotel in Bangkok  The Hari Hong Kong to Open 12 December  Takuya Kishi Joins Four Seasons Hotel Kyoto as General Manager  British Airways' Last Two B747s Find Homes in Surrey and Vale of Glamorgan  Gulf Air Implements Sabre's Branded Fares Technology  Singapore Airlines and Travelport Put NDC into Action  WTTC Calls for 72-Hour Quarantine-Free Journeys  Bart Demosky Joins Bombardier as EVP and CFO  Aman Resorts, Hotels and Residences in Indochina - Interview with Tom Rutherford  Dusit Opens Golf Resort in Singapore  Asia Pacific Airlines Carried Just 1.5 Million Pax in October  FlyArystan Launches Flights from Almaty and Nur-Sultan to Turkistan  Qatar Airways to Resume Flights to Tokyo Haneda on 11 December  EmbraerX and Airservices Australia Publish CONOPS for Urban Air Mobility  WATG Appoints David D. Moore as President and CEO  Mali Orders Second Airbus C295  Air Travel Bubble Between Hong Kong and Singapore Postponed Until 2021  Marriott Opens Second Sheraton Hotel in Hong Kong  SLH Signs One of World's Most Unique Luxury Boutique Hotels  Long Weekends in Thailand Create Much Needed Spike in Hotel Bookings  Chile Trials VeriFLY Digital Health Pass with American Airlines  Two Executive Appointments at Delta  Flexjet Takes Delivery of First Praetor 600 Business Jet  Women's Rugby World Cup to Expand to 16 Teams from 2025  ASEAN Tourism Forum 2021 Postponed Until January 2022  Adrian Zecha Rebrands Hotel in Vietnam for Third Azerai Resort  Wyndham Signs First Grand Hotel in Australia  Murray L. Aitken Joins Hard Rock Hotel Desaru Coast as GM  Accor Doubles Portfolio of MGallery Hotels in Japan  Etihad Airways Trials Facial Biometrics for Cabin Crew Check-In  Air Canada Appoints Jason Berry as Vice President - Cargo  Korean Air Wins H-53E Helicopter Contract from US Defense Dept  Agoda Upgrades Thailand's ASQ Booking Process  Aviation: Regulators Urged to Quickly Adopt Airport Slot Proposals  NCL Appoints Nicholas Lim as General Manager Sales Asia  Air France's Paris - Papeete Flights to Stop in Vancouver Instead of LA  Mandarin Oriental to Take Over Hotel in Riyadh, Saudi Arabia  Delta to Trial Quarantine-Free Entry into Italy  Global Tourism Plastics Initiative Welcomes 26 New Signatories  Embraer Issues HEPA Filter Service Bulletin for ERJ 145 Jets  German Bundeswehr Orders 31 NH90 NFH Sea Tiger Helicopters  Dusit Thani Wellness Resort Opens in Suzhou, China  RAF Red Arrows and Breitling Give Aerobility's Grand Auction Major Boost  AirAsia's Teleport Ready to Distribute COVID19 Vaccines  Korean Air Wins F-16 Fighter Jets Contract from U.S. Defense Department  IHG Opens 347-Room Holiday Inn and Suites Siracha Laem Chabang  Jesús Jean Arnedo Biurrarena Joins Anantara Tozeur Sahara as GM  GHM Appoints Jackson Sim as Group Director of Marketing  Melia Celebrates First Christmas and New Year on Samui with Promotion  Hyatt Regency Phnom Penh to Open 15 January  Accor to be Majority Shareholder in New Lifestyle Venture with Ennismore  Leadership Changes at IATA  ATPCO Launches New Pricing Tool  Stephan Moonen Moves to Sri Lanka as GM of Anantara Resort  GHM Appoints Ilkin Ilyaszade as VP of Operations and Pre-Opening Services  Accor Buys sbe  SAS to Resume Select Flights for Year-End Holiday Season  Boeing Forecasts Middle East to Require 2,945 New Planes Through 2039  IATA to Pilot Travel Pass by Year-End; Launch Scheduled for Q1 2021  Accor Signs First Mövenpick Hotel in Australia  Mandarin Oriental to Rebrand Historic Hotel in Zurich, Switzerland  Emanuel Grosch Appointed GM of Anantara Lawana Samui Resort  GHM Appoints Pissawan Srisakul as Director of Technical Services  Alexandre de Juniac Steps Down as DG of IATA; Willie Walsh to Take Over  Russian Helicopters Delivers First of Three Ansats to Republika Srpska  Air Astana Transforms Business Class into Premium Economy on E190-E2s  The Standard, Huruvalhi Maldives to Reopen 5 December  Accor Adds India and Turkey to Middle East & Africa Region  New Amadeus Report Looks at How Asia Pacific Travel Patterns Are Changing  ICC Sydney Approved to Host 1,500 Delegates at Events  Cebu Pacific Adds More Self-Service Features to Website  Pitak 'Chin' Norathepkitti Joins Anantara Angkor Resort as GM  ExxonMobil Orders Two Airbus H145 Helicopters for PNG LNG Project  Pools Confirmed for Women's Rugby World Cup 2021  Hong Kong - Singapore Air Travel Bubble Suspended at Last Minute  Capella to Open 47-Room Hotel in Hanoi, Vietnam  Sarah Moya Moves to Vietnam as GM of Two Hotels in Quy Nhon  Qatar Airways to Launch Thrice Weekly Flights to Abuja, Nigeria  Air Astana to Launch Flights to Maldives in December  Delta to Block Middle Seats Until 30 March 2021  Hosts in Thailand Commit to Airbnb's COVID19 Safety Practices  Qatar Airways Celebrates Countdown to FIFA World Cup with Special Livery  France Orders 7 Albatros Maritime Surveillance and Intervention Aircraft  New World Signs Third Hotel in Vietnam  Accor Opens 284-Room ibis Styles Hotel in Nagoya, Japan  Name Change for Conventions and Incentives New Zealand (CINZ)  TAT Donates Over 637,000 Baht to Elephant and Forest Conservation  ACI Re-Elects Jost Lammers as President  Accor Expands Partnership with Qantas FFP  HIA Upgrades Travel Experience with Latest CT Screening Technology  Airbus and Germany Submit Eurofighter Offer to Switzerland  New COVID19 Insurance for Inbound Travellers to Singapore  GHM Signs Stunning Chedi Resort on Koh Chang, Thailand  Wyndham Signs First Two Tryp Hotels in New Zealand  Emirates SkyCargo Adds Airbus A380 to Fleet  American Airlines and British Airways Trial Multi-COVID19 Testing  Alex Porteous Joins Four Seasons Hotel Kuala Lumpur as GM  Qatar Airways Signs Codeshare Agreement with Air Canada  Hungary Orders Two Embraer KC-390 Aircraft  Lufthansa and SWISS First to Use Star Alliance's Biometrics Platform  Qatar Airways Launches Student Club  IATA Publishes Guidance for Vaccine Logistics and Distribution  Far East to Open New Properties in Australia, Japan and Singapore  All Passengers on UA14 from Newark to Heathrow Tested for COVID19  Hahn Air Expands NDC Platform; Starts Accepting BSP Cash  Marcel Thoma Joins Mandarin Oriental, Marrakech as GM  20th WTTC Global Hybrid Summit to Take Place in Cancun 23-25 March  Association of Asia Pacific Airlines (AAPA) - State of the Industry with Subhas Menon  Korean Air to Buy Asiana Airlines  IHG Signs First Hotel Indigo in Kuala Lumpur, Malaysia  Anthony Tyler Returns to Mandarin Oriental Bangkok as GM  Aviation Leaders Debate Solutions to Rebuild Passenger Confidence  Mandarin Oriental Making Good Progress in Eliminating Single-Use Plastic  Etihad Airways to Launch Daily Scheduled Flights to Tel Aviv, Israel  Asia Pacific Airlines Strive for Greater Collaboration with Governments  Singapore Airlines Raises S$850 Million Through Convertible Bond Issue  Hong Kong Int. Airport Handled Just 79,000 Passengers in October  Grand Richmond Hotel in Nonthaburi Launches Quarantine Package  HD Videos and Interviews  Podcasts from HD Video Interviews  Travel Trade Shows in 2020 and 2021  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Subscribe to our Latest Travel News Daily Email Free of Charge by simply entering your email address to the right. You can also receive the daily news service by WhatsApp, stay updated with our RSS Feed Free Travel News RSS Feed and even add the travel news to your website. Have questions? Please read our travel news FAQ.
     
Advertising
Advertising
Copyright © 1997-2020 TravelNewsAsia.com