Aviation

African carriers record 6% air freight growth

 

The International Air Transport Association (IATA),  at the weekend released data for global air freight markets. It showed weak air freight demand despite six per cent surge in the African region.
IATA, the clearing house for over 280 airlines in the world, recorded increased demand of 0.1 per cent in March 2019, compared to the same period in 2018.
While this is a significant improvement on the 4.9 per cent contraction in February, in seasonally adjusted terms, demand is still down 1.5 per cent over the past year.
Freight capacity, measured in available freight tonne kilometres (AFTKs), rose by 3.1 per cent year-on-year in March 2019. Capacity growth has now outstripped demand growth for 11 out of the last 12 months.
African carriers, however, posted the fastest growth of any region in March 2019, with an increase in demand of 6.0 per cent compared to the same period a year earlier.
Seasonally-adjusted international freight volumes are lower than their peak in mid-2017; despite this, they are still around 30 per cent higher than their most recent trough in late-2015. Capacity grew 15.2 per cent year-on-year.
Indeed, global demand for air cargo continues to face significant headwind. Global trade volumes have fallen by one per cent over the past year; global economic activity and consumer confidence continue to weaken; and the export order component of the global manufacturers Purchasing Managers Index (PMI) has indicated falling global export orders since September 2018.
Industry confidence regarding the outlook, however, remains relatively upbeat with only 13 per cent of respondents from IATA’s Business Confidence Survey expecting to see a decrease in freight volumes in 2019 compared to 2018.
IATA’s Director General and Chief Executive Officer (CEO), Alexandre de Juniac, remarked that year-on-year demand for air freight edged back into positive territory in March with 0.1 per cent growth.
“After four consecutive months of contraction, this is an encouraging development. But the headwinds from weakening global trade, growing trade tensions and shrinking order books have not gone away,” de Juniac said.

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