IATA: Cargo traffic decline slows, capacity increases in August

Lowering inflation, easing COVID-19 restrictions and increases in global trade contributed to a brighter outlook for the airfreight industry, though uncertainty remains with the approach of peak season. Industrywide cargo traffic, measured in cargo tonne kilometers (CTKs), fell 8.3% year over year, a slight improvement compared with the 9.7% decline in July, according to today’s report from the International Air Transport Association (IATA). However, CTKs rebounded in August, with 1% month-over-month growth compared to July . For international operations in August, traffic fell 9.3% YoY, another slight improvement from July’s 10.2% YoY drop. Capacity, measured in available cargo tonne kilometers (ACTKs), grew significantly over the 3.6% YoY increase seen in July, rising 6.3% YoY in August. Meanwhile, capacity for international operations jumped 6.1% YoY, driven mainly by increased summer flight schedules. Industrywide cargo load factors were down 7.5 percentage points YoY at 46.7% in August, IATA reported. Easing COVID-19 restrictions in China positively impacted cargo markets in August , though the war in Ukraine continues to dampen capacity despite steady increases. August also saw global goods trade rebound slightly, though new export orders — a leading indicator of cargo demand — decreased in all regions except the U.S. Inflation levels also slowed globally for the first time since November 2020, strengthening the airfreight industry as a result, the report stated. Despite the stability of the airfreight industry in the face of uncertainty, market signals remain mixed, IATA Director General Willie Walsh said in the release. “August presented several indicators with upside potential: oil prices stabilized , inflation slowed and there was a slight expansion in goods traded globally,” Walsh said. “But the decrease in new export orders in all markets except the U.S. tells us that developments in the months ahead will need to be watched carefully.” Asia-Pacific Carriers in the Asia-Pacific region benefited most from easing COVID-19 restrictions, with available capacity increasing 13.9% YoY, much higher than the 2.7% YoY rise in July . However, carriers also reported an 8.3% YoY decrease in total CTKs, an improvement over July’s 9% YoY drop. International CTKs, meanwhile, fell 8.8% YoY. Latin America Latin American carriers continued to perform stronger than any other region, reporting an increase of 9% YoY in total CTKs and 11.2% YoY in international CTKs. With airlines introducing new services and investing in additional aircraft, capacity rose 24.3% YoY in August. North America Airlines based in North America saw total CTKs decrease 3.4% YoY, while international CTKs were 4.5% lower YoY. The dip in total cargo volumes was a slight improvement against July’s decline of 5.7%, driven in part by lifting restrictions in China, which improved demand. Meanwhile, capacity jumped 5.7% YoY, higher than July’s YoY capacity increase of 4.2%. Europe, Middle East, Africa Europe once again saw the largest decrease in volumes, marking the fourth consecutive month of the largest decline of all regions. Total CTKs for the region fell 15.1% YoY and international CTKs fell 15.3% YoY. As labor shortages , high inflation and the war in Ukraine continue, volumes are likely to remain affected, IATA reported. Capacity remained relatively flat, increasing 0.4% YoY. Middle Eastern airlines also saw substantial declines in volumes, with total CTKs down 11.3% YoY and international CTKs decreasing 11.2% YoY. Capacity remained flat, decreasing 0.1% YoY, largely due to stagnant cargo volumes to and from Europe. African carriers saw both total and international CTKs rise 1% YoY in August, an improvement over July’s total CTK decline of 3.5% YoY. Capacity for the region fell 1.4% YoY, an improvement from July’s capacity decrease of 2.2% YoY. Join Air Cargo World for our next webinar, “Dangerous goods in focus: Shoring up air cargo logistics,” on Tuesday, Nov. 15, at 11 a.m. ET. Click here for more information and to register.

IATA: Cargo traffic decline slows, capacity increases in August

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