Middle East Carriers See 14.7% Drop in November Cargo Volumes
The International Air Transport Association (IATA) released data for November 2022 global air cargo markets showing that demand softened as economic headwinds persist.
Middle Eastern carriers experienced a 14.7% year-on-year decrease in cargo volumes in November 2022. This was a marginal improvement to the previous month (-15.0%).
Cargo volumes to/from Europe impacted the region’s performance, registering a 16.3% year-on-year decline in November. Capacity increased 2.1% compared to November 2021.
Global goods trade expanded by 3.3% in October. Given the softening in air cargo demand, this suggests that maritime cargo was the primary beneficiary.
Further, the US dollar has appreciated sharply, adding cost pressure as many costs are denominated in US dollars. This includes jet fuel, which is already at elevated levels.
Willie Walsh, IATA’s Director General said: “Air cargo performance softened in November, the traditional peak season. Resilience in the face of economic uncertainties is demonstrated with demand being relatively stable on a month-to-month basis.
"But market signals are mixed. November presented several indicators with upside potential: oil prices stabilized, inflation slowed and there was a slight expansion in goods traded globally. But shrinking export orders globally and China’s rising COVID cases are cause for careful monitoring.”
Read More: Headwinds Continue to Affect Air Cargo Demand in October