Search DubaiPRNetwork.com

Home >> Travel & Tourism

Air Cargo Peak Season off to Slow Start, Annual Demand down 3.5% in October

Wednesday, December 4, 2019/ Editor -  

Share

Home >> Travel & Tourism

Dubai, United Arab Emirates, December 04, 2019:   The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), decreased by 3.5% in October 2019, compared to the same period in 2018. This marks a weak start to the traditional peak season for air cargo and the twelfth consecutive month of year-on-year declines in freight volumes.
Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 2.2% year-on-year in October 2019. Capacity growth has now outstripped demand growth for the 18th consecutive month. 


Over the past year, air cargo has suffered from the effects of the trade war between the US and China, the deterioration in global trade, and a broad-based slowing in economic growth. 


“Air cargo’s peak season is off to a disappointing start, with demand down 3.5% in October.  Demand is set to decline in 2019 overall - the weakest annual outcome since the global financial crisis. It has been a very tough year for the air cargo industry,” said Alexandre de Juniac, IATA's Director General and CEO. 

 

 Regional Performance


Airlines in Asia-Pacific and the Middle East suffered sharp declines in year-on-year growth in total air freight volumes in October 2019, while Latin American and European carriers experienced a more moderate decline. Africa was the only region to record growth in air freight demand compared to October last year. 
Asia-Pacific airlines saw demand for air freight contract by 5.3% in October 2019, compared to the same period in 2018. Capacity increased by 0.6%. The US-China and South Korea-Japan trade wars have negatively affected the region. And the disruption to operations at Hong Kong International Airport – the largest cargo hub in the world – continues to impact activity. However, the thawing of US-China trade relations and robust economic growth in key regional economies are positive developments. 


North American airlines saw demand decrease by 2.4% in October 2019, compared to the same period a year earlier. Capacity increased by 3.1%. The underlying strength of the US economy has seen domestic air cargo outperform international which, as noted above, has also been impacted by the trade tensions with China.   


European airlines posted a 1.5% decrease in freight demand in October 2019 compared to the same period a year earlier – a significant improvement over the 3.5% decrease in September. Better than expected economic activity in Q3 in several of the region’s large economies helped support demand. Capacity increased by 2.8% year-on-year. 


Middle Eastern airlines’ freight volumes decreased 6.0% in October 2019 compared to the year-ago period. This was the sharpest drop in freight demand of any region for the month. Capacity increased by 0.9%. Against a backdrop of operational and geopolitical challenges facing some of the region’s key airlines, seasonally adjusted freight volumes in the region have resumed a modest upwards trend which is a positive development for the region’s carriers.


Latin American airlines experienced a decrease in freight demand in October 2019 of 2.6% compared to the same period last year.  Various social and economic headwinds in the region’s key economies have impacted the region’s air cargo performance. Capacity increased by 2.3% year-on-year.


African carriers posted the fastest growth of any region in October 2019, with an increase in demand of 12.6% compared to the same period a year earlier. Strong trade and investment links with Asia contributed to the positive performance. Freight volumes on key Africa-Asia routes were up 23% annually in September (latest available data). Capacity grew 13.9% year-on-year.

 


Previous in Travel & Tourism

Next in Travel & Tourism


Home >> Travel & Tourism Section

Latest Press Release

DHA Announces Implementation of Diagnosis-Related Group (DRG) for the Health Sec ...

New Italy Visa Application Centre Opens in Dubai

WTTC Launches New Report on the Future of Travel & Tourism in a Post-COVID World

Heads of Ajman Municipality and Ministry of Climate Change and Environment Inspe ...

Mrs Cynthia Bou Khalil Shares Weight Loss Tips To Help Improve PCOS Symptoms

How Smart Wearables Are Contributing Towards Your Fitness And Well-Being: HUAWE ...

Dubai Teenager Climbed Up and Down Stairs at Home With Rio on Her Back

Abu Dhabi's Return to Fight Island Breaks UFC Viewership Records With Adesanya V ...

Rich Egyptian Archive of Photos, Artifacts, and More Comes to NYU Abu Dhabi Libr ...

2021 Cadillac CT4 and CT5 Add More Tech, Safety and Design Elements

Winners of First Voices of Future Generations Writing Competition Announced

ACME Intralog Partners With Kardex Remstar to Ease Pressure on Regional Warehous ...

Value of Dubai Chamber Member Exports Up 7.4% in June-August 2020

Trina Solar's Vertex 600w/550w Series Ultra-High Power Modules Pass Tüv Rheinlan ...

Six Sports Establishments Fined at Weekend for Non-Compliance with COVID-19 Prot ...

WCU: Commodities Lower on Dollar Strength; Silver Hardest Hit

#pinktober: The Ritz-carlton, Dubai Raises Funds and Awareness for Breast Cancer ...

Intersec Moves to 2022 at Dubai World Trade Centre

Genesis Named Double Finalist for 2020 Idea Awards

World Tourism Day 2020