Global air freight markets in June 2019 decreased in demand, measured in freight tonne kilometers (FTKs) by 4.8%, compared to the same period in 2018. This marks the eighth consecutive month of year-on-year decline in freight volumes.
The data released by the International Air Transport Association indicated,
Signs of a modest recovery in recent months appear to have been premature, with the June contraction broad-based across all regions with the exception of Africa. Capacity growth remains subdued and the cargo load factor continues to fall. Globally, trade growth is languishing, and business uncertainty is compounded by the latest tariff increases in the US-China trade dispute.
“Global trade continues to suffer as trade tensions—particularly between the US and China—deepen. As a result, air cargo markets continue to contract. Nobody wins a trade war. Borders that are open to trade spread sustained prosperity. That’s what our political leaders must focus on,” said Alexandre de Juniac, IATA’s Director General and CEO.
Airlines in Asia-Pacific and the Middle East once again suffered
the sharpest declines in year-on-year growth in total air freight volumes in
June 2019. Africa was the only region to show any growth.
demand for air freight contract by 5.4% in June 2019, compared to the same
period in 2018. Although an important factor, the US-China trade war is
not solely responsible for the fall. FTKs for the within-Asia market have
decreased more than 10% over the past year. Air freight capacity increased
by 1.8% over the same period.
- North American
airlines’ freight demand decreased by 4.6% in June 2019,
compared to the same period a year earlier. Capacity increased by 1.9%
over the past year. US-China trade tensions are weighing on the
performance, with FTKs to Asia down 5%. FTKs on routes to/from Europe,
South America and Middle East were also lower.
airlines posted a 3.6% decrease in freight demand in June
2019 compared to the same period a year earlier. Comparatively strong
cargo volumes within Europe are helping to minimize the impact of weaker
German exports. Capacity increased by 2.8% year-on-year.
- Middle Eastern
volumes decreased 7.0% in June 2019 compared to the year-ago period.
Capacity increased by 2.7%. Seasonally-adjusted demand has been falling
since late 2018, and the latest data show volumes to Europe (-7.2%) and
Asia-Pacific (-6.5%) were particularly weak.
- Latin American
a decrease in freight demand in June 2019 of 1.0% compared to the same
period last year and capacity increased by 4.6%. Much of the decline in
traffic can be attributed to weakness in the within-South America market
(especially Brazil and Argentina) where FTKs fell 6.5%.
African carriers were the only ones to report growth in June 2019, with an increase in demand of 3.8% compared to the same period a year earlier. This makes Africa the strongest performer for the fourth consecutive month. Capacity grew 16.6%. Route analysis shows that the Africa-Asia performance is strong—up 12% year-on-year.