Search DubaiPRNetwork.com

Home >> Travel & Tourism

Air Freight Demand Down 1.1% in November 2019

Wednesday, January 8, 2020/ Editor -  

Share

Home >> Travel & Tourism

08 January 2020 (Geneva) - The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), decreased by 1.1% in November 2019, compared to the same period in 2018. This marks the thirteenth consecutive month of year-on-year declines in freight volumes. 

Despite the decline in demand, November’s performance was the best in eight months, with the slowest year-on-year rate of contraction recorded since March 2019. In part, November’s outcome reflects the growing importance of large e-commerce events such as Singles Day and Black Friday.  

While international e-commerce continues to grow, overall air cargo demand continued to face headwinds from the effects of the trade war between the US and China, the deterioration in world trade, and a broad-based slowing in global economic growth.
Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 2.9% year-on-year in November 2019. Capacity growth has now outstripped demand growth for the 19th consecutive month. 

“Air cargo recovered slightly in November, with demand down 1.1% - a significant improvement over the 3.5% decrease in October. However, the fourth quarter is a peak season for air cargo. So, a decline in growth is still a disappointment. Looking forward, signs of a thawing in US-China trade tensions are good news but there is still a long way to go if cargo is to achieve 2.0% growth forecast in 2020,” said Alexandre de Juniac, IATA’s Director General and CEO.

Regional Performance

Airlines in Asia-Pacific, Latin America and the Middle East suffered sharp declines in year-on-year growth in total air freight volumes in November 2019, while North American carriers experienced a more moderate decline. Europe and Africa were the only regions to record growth in air freight demand compared to November last year. 

Asia-Pacific airlines saw demand for air freight contract by 3.7% in November 2019, compared to the same period in 2018. This was the sharpest drop in freight demand of any region for the month.  Capacity increased by 1.8%. The US-China trade war has significantly affected the region, with demand on the large Asia - North America market down 6.5% year-on-year in October (latest available data). 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 1.1% in November 2019, compared to the same period a year earlier. Capacity increased by 3.3%. Slower growth in the US economy and trade tensions with China have affected demand.  However, positive progress in trade negotiations between both countries highlighted by the ‘phase one’ deal is a positive development. 

European airlines posted a 2.6% increase in freight demand in November 2019 compared to the same period a year earlier.  Better than expected economic activity in Q3 in some of the region’s large economies helped support demand. Capacity increased by 4.0% year-on-year. 

Middle Eastern airlines’ freight volumes decreased 3.0% in November 2019 compared to the year-ago period – a significant improvement over the 5.7% decrease in October. Capacity increased by 2.6%. Against a backdrop of operational and geopolitical challenges facing some of the region’s key airlines, seasonally adjusted freight volumes in the region have continued a modest upwards trend which is a positive development for the region’s carriers. However, escalated geopolitical tensions threaten the regions’ carriers in the period ahead.  

Latin American airlines experienced a decrease in freight demand in November 2019 of 3.4% 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 decreased by 2.3% year-on-year.

African carriers posted the fastest growth of any region in November 2019, with an increase in demand of 19.8% compared to the same period a year earlier. Strong trade and investment links with Asia contributed to the positive performance. Capacity grew 13.7% year-on-year.


Previous in Travel & Tourism

Next in Travel & Tourism


Home >> Travel & Tourism Section

Latest Press Release

Volvo UAE Offers Flexible Financial Options to Make Owning a Volvo Even Easier

HUAWEI Sound X: the Latest Tech Prowess Co-engineered by Devialet a Stellar Bran ...

Hyundai Motor Unveils Rendering of New Elantra N Line

David Gandy Stars in Jaguar Racing Podcast Series - Re:Charge @ Home

67 Minutes Will Never Be Enough Empathy

Inauguration of Dubai Route 2020 Metro

UFC 251

IFS Named a Leader in the Gartner 2020 Magic Quadrant for Field Service Manageme ...

New York's Favorite Burger is Shakin' it up in Deira Dubai

Commodity Weekly: Gold Pops, Oil Drops as Covid-19 Maintain Its Grip

Etihad Airways to Resume Special Passenger Services to and From Abu Dhabi to Six ...

Travellers Should ‘Wear to Care' in the New Normal says WTTC

Dubai Customs' 2nd Consultative Council discusses challenges and opportunities o ...

Cebu Pacific resumes Manila-Dubai route starting July 12

Hollywood star Fassbender contests European Le Mans Series with Porsche

American School of Creative Science in Al Barsha will be Shifting to Nad Al-Sheb ...

Middle East Airlines (MEA) Receives its First Airbus A321neo

Schneider Electric Global Supply Chain recognized with 2020 Power of the Profess ...

Renault of Arabian Automobiles Partners With Adcb, Presents Customers 72 Hours o ...

Etihad Airways Announces a New Codeshare Agreement With Air Arabia Abu Dhabi