Capacity increases by 8.8%
According to the latest figures from The International Air Transport Association (IATA), Middle Eastern airlines’ freight volumes, measured in freight tonne kilometers (FTKs), expanded 5% in October 2018 compared to the same period last year.
Capacity, measured in available freight tonne kilometers (AFTKs), increased by 8.8% over the same period. There are signs of a pick-up in seasonally-adjusted international air cargo demand helped by more trade to/from Europe and Asia.
Meanwhile, global air freight markets showed that demand rose 3.1% in October 2018, compared to the same period the year before.
This pace of growth was up from a 29-month low of 2.5% in September.
Freight capacity rose by 5.4% year-on-year in October 2018.
This was the eighth month in a row that capacity growth outstripped demand.
Growing international e-commerce and an upturn in the global investment cycle are supporting the growth.
However, demand continues to be negatively impacted by a contraction in export order books in all major exporting nations, longer supplier delivery times in Asia and Europe, and weakened consumer confidence compared to very high levels at the beginning of 2018.
Said Alexandre de Juniac, IATA's Director General and CEO: “Cargo is a tough business, but we can be cautiously optimistic as we approach the end of 2018.
“Slow but steady growth continues despite trade tensions. The growth of e-commerce is more than making up for sluggishness in more traditional markets.
“And yields are strengthening in the traditionally busy fourth quarter.
“We must be conscious of the economic headwinds, but the industry looks set to bring the year to a close on a positive note.”