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Air Cargo Recovery Continues in June but at a Slow Pace
Middle East carriers experience improvements over May volumes
The International Air Transport Association (IATA) released data for global air freight markets in June showing improvement, but at a slower pace. The Middle East region experienced a slightly less dramatic decline at 19.1% year-on-year in June.
This was an improvement from the 24.9% fall in May. Meanwhile, international freight capacity of the Middle East decreased 25.8%, the best of all regions. This was driven by the aggressive operational strategies of some of the region’s major carriers like Emirates and Etihad.
Global demand fell by 17.6% in June (-19.9% for international operations) compared to the previous year. That is a modest improvement from the 20.1% year-on-year drop recorded in May.
Global capacity, measured in available cargo tonne-kilometers (ACTKs), shrank by 34.1% in June ( 33.9% for international operations) compared to the previous year. This was on par with the 34.8% year-on-year drop in May.
Belly capacity for international air cargo shrank by 70% in June compared to the previous year due to the withdrawal of passenger services amid COVID-19. This was partially offset by a 32% increase in capacity through expanded use of freighter aircraft.
Global manufacturing demand stabilized in June:- The new export orders component of the Purchasing Managers Index (PMI) rose by 11 points compared to May, the strongest monthly increase since the series began in 1999.
The PMI tracking global manufacturing output rebounded in June to its highest level since January.
Alexandre de Juniac, IATA's Director General and CEO said: “Cargo is, by far, healthier than the passenger markets but doing business remains exceptionally challenging.
"While economic activity is re-starting after major lockdown disruptions there has not been a major boost in demand.
"The rush to get personal protective equipment (PPE) to market has subsided as supply chains regularized, enabling shippers to use cheaper sea and rail options. And the capacity crunch continues because passenger operations are recovering very slowly.”