Global airfreight demand increased by 11.4% in July 2017 compared to the same period a year ago, the fourth time in five months that double-digit annual growth was recorded, according to data from the International Air Transport Association (IATA).
July’s year-on-year increase in demand is nearly four times higher than the 10-year average growth rate of 3.1%, IATA noted.
Freight capacity grew by 3.7% year-on-year in July 2017. Demand growth continues to significantly outstrip capacity growth, which is positive for airline yields and the industry’s financial performance.
The robust growth in air cargo demand is consistent with an uptick in global trade, rising export orders, and upbeat business confidence indicators.
“July was a strong month for air cargo with double-digit growth. And for the third consecutive month demand for air freight grew at a faster pace than demand for air travel. While the outlook for the rest of the year remains positive, there are signs that the cyclical growth period may be nearing a peak,” said Alexandre de Juniac, IATA’s director general and CEO.
All regions posted robust freight growth in July 2017.
For Asia-Pacific airlines, freight volumes grew 11% in freight tonne kilometer terms compared to July 2016. Capacity measured in available freight tonne kilometers increased by 6.3%. Demand growth was robust on all the major routes to, from, and within the region. Seasonally adjusted international freight volumes fell slightly in July but remained more than 3% above the volumes reached following the 2010 post-global financial crisis bounce-back.
North American carriers posted an increase in freight volumes of 11.9% in July 2017, and a capacity increase of 1.1%. International freight volumes continued their strong upward trend. The strong U.S. dollar has boosted the inbound freight market over the past few years, but the dollar’s decline since the start of the year is likely to help rebalance trade flows.
European airlines posted a 12.1% increase in freight demand in July 2017 and a capacity increase of 5.5%. Double-digit growth in international demand has now been recorded in nine out of the past 11 months, bolstered by strong demand on the Europe-Asia market.
Middle Eastern carriers’ year-on-year freight volumes increased 9.3% in July 2017 and capacity decreased 0.4%. International freight volumes have maintained their solid upward trend. However, amid strong competition, the Middle East carriers are not seeing as strong a pickup in the seasonally adjusted traffic trend as other regions’ carriers.
Latin American airlines experienced a growth in demand of 5.8% in July 2017 compared to the same period in 2016. Capacity increased by 4.7% over the same period. International freight volumes grew strongly in July 2017; however, they remained 9% lower than at the peak in 2014.
African carriers posted the largest year-on-year increase in demand of all regions in July 2017 with freight volumes growing 33.7%, the second fastest monthly rise in seven years. Capacity increased by 4.5% over the same time period. Demand has been boosted by very strong growth on the trade lanes to and from Asia, which increased 80% year-on-year in June and by 65% in the first half of the year.
Photo: Karelj
