IATA: Air Cargo Recovery Predictions ‘Premature’
The International Air Transport Association (IATA) has released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), decreased by 4.8% in June 2019, compared to the same period in 2018, marking the eighth consecutive month of year-on-year decline in freight volumes.
Signs of a modest recovery in recent months appear to have been premature, with the June contraction broad-based across all regions with the exception of Africa.
Capacity growth remains subdued and the cargo load factor continues to fall.
Globally, trade growth is languishing, and business uncertainty is compounded by the latest tariff increases in the US-China trade dispute.
Alexandre de Juniac, IATA's Director General and CEO, said: "Global trade continues to suffer as trade tensions—particularly between the US and China—deepen.
“As a result, air cargo markets continue to contract. Nobody wins a trade war. Borders that are open to trade spread sustained prosperity. That's what our political leaders must focus on."
Read: Maersk CEO - World has Survived Trade War
Airlines in the Middle East faced difficulty again, suffering the sharpest declines in year-on-year growth in total air freight volumes in June 2019.
Africa was the only region to show any growth, while Asia-Pacific airlines saw demand for air freight contract by 5.4% in June 2019 year-on-year.
Other key regions scored as follows:
- North American airlines' freight demand decreased by 4.6% year-on-year in June 2019
- European airlines posted a 3.6% decrease in freight demand in June 2019
- Middle Eastern airlines' freight volumes decreased 7.0% in June 2019 compared to the year-ago period
- Latin American airlines experienced a decrease in freight demand in June 2019 of 1.0% compared to the same period last year and capacity increased by 4.6%
- African carriers were the only ones to report growth in June 2019, with an increase in demand of 3.8% compared to the same period a year earlier
Read more: Passenger Demand Accelerates in June
