in General Aviation

Air freight demand growth slows in May

Posted 7 July 2016 · Add Comment

The International Air Transport Association (IATA) released global air freight data showing that demand measured in freight tonne kilometers (FTKs) slowed in May with growth falling to 0.9% year-on-year.

Yields remained pressured as freight capacity measured in available freight tonne kilometers (AFTKs) increased by 4.9% year-on-year. 

Freight demand decreased or flat lined in May across all regions with the exception of Europe and the Middle East. These regions recorded growth in air cargo volumes of 4.5% and 3.2%, respectively, in May, compared to the same period last year.

African carriers saw freight growth in May 2016 of 0.3% compared to the same period last year. African airlines’ capacity increased by 22.2% year-on-year on the back of long-haul expansion continuing the trend seen since December 2015

Broad weakness in world trade volumes, which have largely tracked sideways since the end of 2014, accounts for about 80% of air freight’s sluggish performance.

“Global trade has basically moved sideways since the end of 2014 taking air cargo with it. Hopes for a stronger 2016 are fading as economic and political uncertainty increases. Air cargo is vital to the global economy. But the business environment is extremely difficult and there are few signs of any immediate relief,” said Tony Tyler, IATA’s Director General and CEO.

Asia-Pacific airlines reported a 0.7% decrease in demand for air cargo in May compared to last year. Capacity expanded 3.7%. Airlines in Asia-Pacific continue to face headwinds from weak trade in the region and globally.

North American carriers experienced a decline in demand in year-on-year performance of 0.2%. Freight volumes have suffered from the strength of the US dollar which has kept the US export market under pressure. This has contributed to the freight demand of US carriers remaining in negative territory for the past twelve consecutive months.

European airlines witnessed a 4.5% increase in freight volumes and a 5.7% increase in capacity in May 2016. The positive European performance corresponds with an increase in export orders in Germany over the last few months.

 

Latin American airlines reported a decline in demand of 9.7% and a decrease in capacity of 7%, as economic conditions continued to worsen in Latin America, particularly in the region’s largest economy, Brazil.

* required field

Post a comment

Other Stories
Advertisement
Latest News

Emirates service to Tunis becomes daily

Emirates has reaffirmed its commitment to Tunis by increasing the frequency of flights between Dubai and Tunis from six to seven a week starting 30th October 2017.

TIACA expands global reach with new board member from Africa

A new board member, representing the ground handling and cargo carrier sectors of Africa has been appointed to the TIACA Board of Directors.

Global Aviation to lease an A300 freighter

Libya's Global Aviation will shortly wet-lease an A300C4 freighter from Moldova's Air Stork , reports ch-aviation.

New CEO of SAA to start role in November

South African Airways (SAA) has announced the start date of its new Chief Executive Officer (CEO) at the airline's headquarters, Airways Park, Johannesburg, as November 1, 2017.

Construction at terminal 3 at Accra-Kotoka International effects certain operators

With construction work on Accra-Kotoka Internationals new Terminal 3 flagship project moving into top gear some operators at the airport have had to change location to facilitate the development.

Sanjeev Gadhia elected to TIACA board

Africa has its first representative on the board of TIACA (The International Air Cargo Association, USA) which is the largest air-cargo association in the world.

Honeywell ADSBSK0109300917
See us at
Global Aerospace BT28218ACI Africa BT77181017AfBAC Expo BT2017AIMA Africa 2017Aviation Africa BT18418GroundHandling BT0303280917