IATA: Air cargo demand shows signs of improvement in February

Air cargo demand rose above pre-pandemic levels in February as the consistent drop in demand slowed. Industry cargo tonne-kilometers (CTKs) fell 7.5% compared with February 2022, and 8.3% for international operations, according to IATA figures released Tuesday. The drop was half the annual decline rate seen in the previous two months, and February demand was 2.9% higher than February 2019. This was the first time that demand surpassed pre-pandemic numbers in eight months. Capacity, measured in available CTKs, was up 8.6% year over year. As the passenger sector of the industry recovered, more belly capacity became available. In a release, IATA attributed the overall growth in capacity to the continued increase in belly capacity. International belly capacity increased by 57% YoY in February and hit 75.1% of 2019 capacity. China’s Purchasing Managers Index passed the 50 mark in February, indicating growing demand for manufactured goods from the country, IATA reported. IATA pointed to other key factors in the operating environment, including global goods trade decreasing by 1.5% in January, slower than the previous month’s 3.3% drop. The Consumer Price Index for G7 countries fell to 6.4% in February from 6.7% in January. “The story of air cargo in February is one of slowing declines,” IATA Director General Willie Walsh said in a release. “This shifting of gears was sufficient to boost the overall industry into positive territory compared to pre-pandemic levels. An optimistic eye could see the start of an improvement trend that leads to market stabilization and a return to more normal demand patterns after dramatic ups and downs in recent years.” [caption id="attachment_57135081" align="aligncenter" width="1024"] Source: IATA[/caption] Asia-Pacific Asia-Pacific airlines saw air cargo volumes decrease 6% in February YoY, improving from a 19% YoY drop in January . The region’s available capacity in February rose 19.9% YoY. China’s reopening benefited the region and led to more belly capacity in the passenger side of the industry, according to IATA. The region had a load factor level of 46.4% in February, down 12.8% YoY. North America North American carriers saw a 3.2% YoY drop in February cargo volumes, a slower decline compared with 8.7% in January. Capacity increased 2.8% YoY for the region. North America’s international cargo market share increased to 21.7%, 3.5 percentage points higher than February 2019. The region had a load factor of 40%, down 2.5% YoY. Europe European carriers had the largest regional decline with a 15.3% YoY drop in cargo volumes. The region also had the worst performance in January and in 2022. Capacity decreased 1.5% YoY. The war in Ukraine continued to affect the region, IATA said. Europe had a load factor level of 57.4%, a 9.4% YoY decline. Middle East Middle Eastern carriers saw an 8.1% YoY decrease in cargo volumes in February. The region has seen consistently slower declines each month in 2023. Capacity grew 9.3% YoY. The region’s load factor level increased 3.4 percentage points to 44.5%, an 8.4% YoY decline. Latin America After an increase in January, Latin American carriers saw cargo volumes decrease by 2.7% YoY in February. Capacity increased 27.6% YoY from February 2022, and load factor level dropped 11.2% YoY to 36.1%. Africa African airlines saw a 3.4% YoY decrease in cargo volumes, improving from 9.5% and 10% decreases in the previous months. Capacity increased 4.7% YoY, while load factor level fell 3.9% YoY to 46.8%. The Africa to Asia route area saw significant growth in cargo demand with a 39.5% YoY increase in February, IATA said.

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