Air cargo records second month of solid growth

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MAS AirGlobal airfreight markets logged another strong month in August, the second month in a row of robust volume expansion, according to statistics from International Air Transport Association (IATA).

Measured by freight tonne kilometers, volumes rose 5.1 percent compared to August 2013, and come on the heels of a 6.1 percent year-on-year rise recorded in July. Capacity grew at a slower pace of 3.4 percent in August from the previous year.

Carriers in all regions reported expanded volumes following improvements in world trade and business activity. The strongest growth in the 5 percent to 8 percent range was reported by airlines in the Middle East, North America, and Asia.

Europe and Latin America, however, lagged in the 1 percent to1.5 percent range as a result of Brazilian economic weakness and EU sanctions on business with Russia, respectively.

Tony Tyler, IATA’s director general and CEO, said that while the outlook for air cargo is “clearly getting better,” he warned of “limiting factors” to potential gains.

“Demand for air cargo is growing more slowly than global economic activity. Businesses are reported to have more confidence in the future, but the list of political and economic risks continues to moderate how that confidence translates into actual activity,” he added.

By region, Asia-Pacific carriers continued the acceleration of recent months with a 6.3 percent growth in August year-over-year. Emerging Asia trade volumes expanded volumes solidly in June and July. A notable rise in Chinese export orders bodes well for future demand growth. Capacity expanded 4.4 percent.

European airlines grew just 1.4 percent as economic activity within the Eurozone continues to deteriorate. EU sanctions as a result of the Russia-Ukraine crisis also continue to affect demand. Capacity expanded 4.8 percent.

North American carriers increased airfreight volumes by 5.5 percent compared to a year ago as business activity rebounded, and “positive underlying economic growth trends should support stronger growth in the coming months,” said IATA. Capacity fell 0.4 percent.

Middle Eastern carriers reported vigorous cargo growth of 7.8 percent, a little below the year-to-date average of 9.6 percent, on growing links to developing markets, as well as diversification into perishables. Capacity was up 6 percent.

Latin American airlines saw air cargo grow by a sluggish 1.1 percent compared to August 2013, reflecting declines in regional trade activity and the anemic performance of the Brazilian economy. Capacity expanded 7.6 percent

African airlines reported a solid 9.2 percent year-on-year expansion, although market volatility, coupled with the slowdown in key African economies such as South Africa, makes definite forecasts difficult, noted IATA. Capacity grew 4.2 percent.

Hong Kong airport’s new CEO takes over

Meanwhile, Airport Authority Hong Kong, operator and developer of Hong Kong International Airport, announced that Fred Lam Tin-fuk has assumed office as chief executive officer.

Lam’s tenure began with an immersion into the round-the-clock operations of the Integrated Airport Centre to gain familiarity with its scale and complexity. He was also briefed on airport contingency plans in the event of unexpected operational issues.

Lam said his priorities will be focused on three areas: maintaining HKIA’s high efficiency, planning and implementing development projects, and attracting and developing talent.

“There is also an urgent need for us to expand the airport and move forward with our medium- and long-term developments—namely the Midfield development, the North Commercial District development and the proposed three-runway system,” added Lam.

Photo: Aero Icarus