in Air Transport

African FTKs fell by 3.4% in March

Posted 2 May 2018 · Add Comment

The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 1.7% in March 2018, compared to the same period the year before. This was five percentage points lower than the February result and the slowest pace of growth in 22 months.

 

The year-on-year increase in capacity, measured in available freight tonne kilometers (AFTK) fell to 4.4% compared to 6.3% in February. This was the first time in 20 months, however, that annual capacity rose faster than demand.

The sharp growth slowdown is principally due to the end of the restocking cycle, during which businesses rapidly increased their inventory to meet unexpectedly high demand. A softening of global trade is also evident.

“It’s normal that growth slows at the end of a restocking cycle. That clearly has happened. Looking ahead we remain optimistic that air cargo demand will grow by 4-5% this year. But there are obviously some headwinds. Oil prices have risen strongly, and economic growth is patchy. The biggest damage could be political. The implementation of protectionist measures would be an own-goal for all involved—especially the US and China,” said Alexandre de Juniac, IATA’s Director General and CEO.

African FTKs fell by 3.4% in March. This result may, however, be influenced by the comparison with unusually strong growth in March 2017. Indeed, Africa has reported the fastest growth of all regions for 17 of the last 18 months, so it would be premature to suggest this is the start of a negative trend. 

Other Regional performance 

All regions except Latin America reported year-on-year declines in growth in March, with Africa in negative territory 

Asia-Pacific carriers reported FTK growth of just 0.7% compared to the same period a year ago. Export orders in Japan and Korea have fallen in recent months and the region remains particularly exposed to the impact of protectionist measures.

European airlines FTKs rose 1.0% in March compared to March 2017. A stronger Euro and a softening of export orders in Germany partially explain the result, but the seasonally-adjusted trend in FTKs has been slowing in recent months. 

Latin American airlines posted growth of 15.5% in March compared to a year ago, the only region to improve on its performance compared to February 2018. Freight volumes in the region have been recovering over the past 18 months, in part due to the better performance of the Brazilian economy.

Middle East carriers saw growth of 0.8% in March compared to March 2017. This is consistent with the general weakening in regional performance over recent months, and in particular may reflect an especially strong March 2017 result. 

North American carriers’ freight volumes expanded 3.9% compared to March 2017. The US inventory-to-sales ratio has risen in 2018, indicating the boost to cargo growth from restocking is over.

* required field

Post a comment

Other Stories
Latest News

Tiger wants the Russians to roar

Tiger Aviation Services (TAS) started its ground-handling services with just four staff in a small office at Cairo International Airport nearly three decades ago.

Bombardier sees increasing demand for pre-owned aircraft in Africa

At the African Aviation Finance conference in Johannesburg, South Africa, Bombardier Commercial Aircraft reflected on the development of the African Regional Aircraft market, stating that it was seeing a surge in demand in Africa for

Embraer Phenom to make impact with debuts at EBACE

Embraer will debut the Phenom 100EV business jet at the European Business Aviation Conference and Exhibition (EBACE) in Geneva, Switzerland, from May 29 to May 31.

Ethiopian marks African aviation history with 100th aircraft in active service

Ethiopian Airlines and SKYTRAX have announced that it will take delivery on June 5 2018 of its 100th aircraft, a Boeing 787-900, making it the first African airline to operate a 100 aircraft fleet in the history of the continent.

Kenya turns to crop dusters to turbo charge its forces

Kenya’s requirement for new light attack/armed intelligence, surveillance, and reconnaissance (ISR) aircraft has been dogged by controversy. Jon Lake attempts to unravel a complicated situation.

Air BP expands its network with six new locations in Africa

Air BP has collaborated with Vivo Energy to grow its network in Africa, adding six new locations: Sir Seewoosagur Ramgoolam International Airport, Abidjan-Felix-Houphouet-Boigny International Airport, Nelson Mandela

Routes African SK1505180718
See us at
AAD2018 BTGroundHandling BT2205130918AirCargoAFA_BT220318210219