Search DubaiPRNetwork.com

Home >> Travel & Tourism

Weak Air Freight Demand Continues

Wednesday, May 8, 2019/ Editor -  

Share

Home >> Travel & Tourism
Dubai, United Arab Emirates - May 08, 2019:  The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), increased 0.1% in March 2019, compared to the same period in 2018.
 
While this is a significant improvement on the 4.9% contraction in February, in seasonally adjusted terms, demand is still down 1.5% over the past year. 
Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 3.1% year-on-year in March 2019. Capacity growth has now outstripped demand growth for 11 out of the last 12 months. 
 
Demand for air cargo continues to face significant headwinds:
 
  •  Global trade volumes have fallen by 1% over the past year; 
  •  Global economic activity and consumer confidence continue to weaken; 
  •  And the export order component of the global manufacturers Purchasing Managers Index (PMI) has indicated falling global export orders since September 2018. 
 
Industry confidence regarding the outlook, however remains relatively upbeat with only 13% of respondents from IATA’s Business Confidence Survey expecting to see a decrease in freight volumes in 2019 compared to 2018.
 
“Year-on-year demand for air freight edged back into positive territory in March with 0.1% growth. After four consecutive months of contraction, this is an encouraging development. But the headwinds from weakening global trade, growing trade tensions and shrinking order books have not gone away,” said Alexandre de Juniac, IATA's Director General and CEO.   
 
Regional Performance
All regions reported year-on-year demand growth in March 2019, except Asia-Pacific which contracted.
Asia-Pacific airlines saw demand for air freight shrink by 3.4% in March 2019, compared to the same period in 2018. This was a significant improvement from the 12.0% decline in growth from the previous month. Weaker manufacturing conditions for exporters in the region, ongoing trade tensions and a slowing of the Chinese economy impacted the market. Capacity decreased by 1.0%.  

North American airlines saw demand increase by 0.4% in March 2019, compared to the same period a year earlier. The recent easing of growth is partly due to a slowing of US domestic economic activity in the later part of 2018 and falling global trade volumes. Despite this, new export orders are rising which would support air cargo growth. Capacity increased by 2.6% over the past year. 

European airlines posted a 3.6% increase in freight demand in March 2019 compared to the same period a year earlier. Given the weaker manufacturing conditions for exporters in Germany, and uncertainty over Brexit, March’s performance represents a positive outcome. Capacity increased by 6.4% year-on-year. 

Middle Eastern airlines’ freight volumes increased 1.3% in March 2019 compared to the year-ago period. Capacity increased by 3.8%. A clear downward trend in seasonally-adjusted international air cargo demand is now evident with weakening air freight volumes to/from North America and to/from Asia Pacific contributing to the softer performance.    

Latin American airlines experienced an increase in freight demand growth in March 2019 of 3.6% compared to the same period last year and capacity increased by 16.9%. The emergence of the Brazilian economy from recession is supporting a resurgence in air cargo demand. Nevertheless, ongoing economic and political uncertainties in various parts of the region continue to present challenges for the industry. 

African carriers posted the fastest growth of any region in March 2019, with an increase in demand of 6.0% compared to the same period a year earlier. Seasonally-adjusted international freight volumes are lower than their peak in mid-2017; despite this, they are still around 30% higher than their most recent trough in late-2015. Capacity grew 15.2% year-on-year.
 

Previous in Travel & Tourism

Next in Travel & Tourism


Home >> Travel & Tourism Section

Latest Press Release

Supreme Armenian Patriarch Hails UAE as Global Model of Peaceful Coexistence

Turkish Airlines to Open Five Lounges at the New Istanbul Airport

KIA Telluride Offers Rugged Luxury

Game Of Phones: 8 reasons why software should sit on the throne

HP and Siemens Deepen Additive Manufacturing Alliance to Advance Digital Manufac ...

Pure Gold Jewellers launches Arabic calligraphy diamond pendants for Eid

Dubai Cares successfully wraps up its Ramadan volunteering initiative with the p ...

Boss Bottled Oud Aromatic and Saffron: the New Enticing Fragrances

Dubai Culture gathers the community to support ‘Well of Hope'

Quran Tech by Dubai Culture inspires visitors at The Dubai Mall in a hi-tech wa ...

Nissan to equip new Skyline with world's first next-gen driver assistance system

**Decor with an ethnic flare to change the aesthetic of any room**

W Motors Joins Partner Iconiq Motors at World Intelligence Congress in Tianjin, ...

This Ramadan, experience IKEA at Al-Futtaim Toyota

Crazy Diamonds – Tradition With a Twist

Burjeel Hospital for Advanced Surgery, Dubai performs a first-of-its-kind knee r ...

Xerox Announces Industry's Lightest Paper Kit

Celebrate Eid Al-fitr With Limitless Beach Views at Le Meridien Al Aqah

Saudi's KAUST first Middle East university to chair Europe's supercomputing ISC ...

Gulf Navigation Holding announced 19% revenue growth in Q1