Global air cargo in ‘demand limbo’—IATA

0
338

Air freight volumes in June recorded a slight increase over the same month the previous year, boosted by the strong growth in the Middle East market and the improvement in African and North American demand, said the International Air Transport Association (IATA).

While industry performance remains soft, freight demand grew by 0.8 percent in June while capacity expanded by 1.7 percent. Current demand level is a 2.5 percent improvement on the market lows reached in the fourth quarter of 2011, IATA said.

But Tony Tyler, IATA’s director general and CEO, cautioned against optimism over this good news. “The uncertainty that we see in the global economic situation is being reflected in air transport’s performance. Although there are some pockets of solid performance, it is difficult to detect a strong trend—positive or negative—at the global level.”

He described the  situation as “a demand limbo as consumers and businesses hedge their spending while awaiting clarity on the European economic front.”

The Middle East carriers helped lift June statistics as they posted a 17.9 percent increase in demand against a 14.2 percent increase in capacity, IATA said in its latest report.

African airlines were also in positive territory with a 15.9 percent increase in demand against a 12.1 percent increase in capacity.

Likewise on an upswing are the North American carriers, which saw demand grow 1.8 percent compared to the previous June, while capacity shrank by 1 percent.

Asia-Pacific airlines reported a 3 percent decline in demand ahead of a 1.3 percent trimming of capacity, as China and India experience an economic slowdown that has put a dampener on air freight demand in the region.

Continued economic woes in Europe pushed down air freight in the region by 1.1 percent compared to June 2011, even as capacity grew by 1.8 percent. Latin American airlines recorded a 1.4 percent decline in demand while capacity grew by 12.5 percent.

 

Photo: davidreid