in General Aviation

IATA release data for global air freight showing African Airlines' decline

Posted 8 March 2016 · Add Comment

The International Air Transport Association (IATA) released data for global air freight markets in January showing a rise in freight tonne kilometers (FTK) of 2.7% compared to January 2015.

This continues the improving trend witnessed toward the end of 2015, and is the fastest pace since April of last year. The freight load factor (FLF) fell 1.8 percentage points, however, indicating that yields are likely to come under further pressure. 

African airlines’ FTKs declined by 1.4% in January compared to January 2015, and the FLF was 22.6%, down 4.8 percentage points, and the lowest of any region. The largest economies in the region, Nigeria and South Africa, are heavily dependent on energy industries and have been hit hard by the slump in global commodity prices. 

Total FTKs in January surpassed the previous all-time peak reached in February 2015. All regions except the smallest markets of Africa and Latin America expanded in January, but all regions reported declines in the FLF. Despite this good start, the underlying weak trade performance makes it unlikely that growth will accelerate significantly in the coming months. 

“It is good news that volumes are growing, but yields and revenues are still under tremendous pressure. Air cargo plays a vital role in our globalized and fast-paced world in which trade is the foundation for long-term prosperity. Removing barriers to trade is a win-win. It will shore-up the foundations for stronger economies. And an improved business environment for air cargo will help facilitate much needed technology and process investments so that the industry will be an even stronger catalyst for growth and development. A third of the value of goods traded internationally are delivered by air. But the value of air cargo goes much deeper in the prosperity that it creates in supporting jobs and economic opportunity,” said Tony Tyler, IATA’s director general and CEO. 

Regional Analysis in Detail 

Asia-Pacific carriers, which comprise almost 39% of all air freight, expanded by 1.3% year-over-year (although the international freight figure was a much lower 0.2%). The FLF fell 2.3 percentage points to 49.8%, still the highest of any region. Emerging Asia trade contracted in the second half of 2015 and in general trade to and from Asia-Pacific is weak. 

European airlines’ demand grew by 2.5% in January but the FLF fell 1.5 percentage points, to 41.6%. Growth may have been flattered by the volatility and weakness seen a year ago. The growth trend for volumes looks weak for the months ahead, so there is a strong possibility that Europe could slip back into negative growth.  

Latin American carriers continued the weak performance of recent months, declining by 3.6%. The FLF fell 2.7 percentage points, down to 32.9%. Brazil, the region’s largest economy, has struggled, particularly with the fall in the price of oil and other commodities.  

Middle Eastern carriers resumed their strong growth trend, expanding 8.8% in January. The FLF was broadly stable, declining just 0.3 percentage points to 39.2%. The region’s airlines continue to enjoy strong growth, helped by large-scale network and fleet expansion.  

North American airlines saw FTKs expand 2.5% in January compared to January 2015. The FLF was 34.6%, a fall of 1.4 percentage points. Following the spike in volumes due to last year’s West Coast ports strike, air freight from the US across the Pacific fell away. On the other hand trade with Europe, particularly imports, has increased.

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Boeing Global Services Forecasts 1.2 million pilots and technicians needed by 2036

Now in its eighth year, the outlook is a respected industry study that forecasts the 20 year demand for crews to support the world's growing commercial airplane fleet.

Customers eyeing up the all-seeing Mwari

With Paramount Group starting production of its AHRLAC advanced high-performance light reconnaissance aircraft, attention is now switching to the weaponised version, Mwari. Sam Basch reports.

Zambia to acquire five SuperJets from Sukhoi

Sukhoi Civil Aircraft t has signed contracts with customers in Zambia for the supply of five SSJ 100-95s, reports ch-aviation.

Dassault delivers 2,500th Falcon business jet

Dassault Aviation recently delivered its 2,500th business jet, marking yet another landmark event in the storied saga of the Falcon line.

Air Serv begins operations in Kananga, Democratic Republic of the Congo

Air Serv has deployed a start up team and Cessna Caravan to Kananga, Democratic Republic of the Congo (DRC), to launch a new program in support of humanitarian organizations working in the region. July 10, 2017 saw the departure of the

SA Airlink to provide services to St Helena and Ascension Island

St Helena Government and SA Airlink (Airlink) has signed an agreement for Airlink to provide scheduled commercial air services to St Helena Island. Airlink will also operate a monthly charter service between St Helena and Ascension

Aviation Africa SK18418
See us at
Global Aerospace BT28218ACI Africa BT77181017GroundHandling BT0303280917AfBAC Expo BT2017Aviation Africa BT18418