2019 worst year for air cargo since 2009—IATA  

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The global air freight industry saw declining volumes for the first time since 2012 in 2019, the year also marking its weakest performance since the global financial crisis in 2009, according to the International Air Transport Association (IATA).

Badly affected by trade tensions, global air freight demand as measured in freight tonne kilometers (FTKs) fell by 3.3% in 2019 compared to 2018. Meanwhile capacity rose by 2.1%.

In December, cargo volumes contracted 2.7% year-on-year while capacity rose 2.8%.

Air cargo’s performance in 2019 was dampened by weak growth in global trade of just 0.9%, slowing GDP growth in manufacturing-intensive economies, softer business and consumer confidence, and falling export orders.

“There are signs that confidence and orders could pick up in 2020. It is too early to say what long-term effects will be seen from the impact of restrictions associated with combatting the coronavirus outbreak,” said IATA in a release.

“Trade tensions are at the root of the worst year for air cargo since the end of the Global Financial Crisis in 2009. While these are easing, there is little relief in that good news as we are in unknown territory with respect to the eventual impact of the coronavirus on the global economy. With all the restrictions being put in place, it will certainly be a drag on economic growth,” said Alexandre de Juniac, IATA’s director general and CEO.

“And, for sure, 2020 will be another challenging year for the air cargo business,” he said.

All regional markets except Africa suffered volume declines in 2019. Asia-Pacific retained the largest share of freight traffic at 34.6%. The share of freight traffic increased modestly for both North America and Europe, to 24.2% and 23.7%, respectively. Middle East carriers’ traffic share held steady at 13%. Africa and Latin America saw their shares lift marginally, to 1.8% and 2.8%.

Asia-Pacific carriers in December posted a decrease in demand of 3.5% compared to the same period a year earlier. Capacity increased by 2.8%. The full-year 2019 saw volumes decline 5.7%, the largest decrease of any region, while capacity increased by 1.1%.

With Asia as the world’s main manufacturing region, international trade tensions and the global growth slowdown weighed heavily on regional air freight volumes in 2019. Within-Asia freight traffic was particularly affected, down 8% compared to a year ago.

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