Global air freight volumes still weak

by Array

GENEVA, Switzerland: The air freight industry demonstrated a small bit of growth in June.

Figures released by the International Air Transport Association (IATA) indicate freight volumes recorded a 0.8 percent increase in June while capacity increased 1.7 percent, when compared with data from June 2011. According to the IATA this brings the seasonally adjusted June demand to about 2.5 percent above the low reached in the fourth quarter of 2011.

What isn’t reflected in the overall numbers is a strong growth of 17.9 percent for airlines based in the Middle East (in comparison with a 14.2 percent increase in capacity),  and a slight 1.8 percent increase in demand for North American air freight. African airlines were also in positive territory with a 15.9 percent increase in demand against a 12.1 percent increase in capacity.

Airlines in the Asia-Pacific region experienced a three percent decline in demand and a reduction of 1.3 percent in capacity, while European carriers had a 1.1 percent decrease in demand and a 1.8 percent growth in capacity when compared with the previous year. Latin American airlines recorded a 1.4 percent decline in demand while capacity grew by 12.5 percent.

“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. Passenger markets have been growing more slowly since the beginning of the year and freight markets gains have been mostly very weak. The net effect is a demand limbo as consumers and businesses hedge their spending while awaiting clarity on the European economic front,” said Tony Tyler, IATA’s director general and CEO.