Air cargo market decline slows in April, IATA finds

Global air cargo markets in April showed a continued, but slower, decline against the previous year’s demand performance. Global demand fell 6.6% compared to April 2022, according to figures released by IATA today. This decline was an improvement from March, which saw global demand fall 7.6% year over year. Capacity was up 13.4% compared to April 2022. It was also up 3.2% compared to April 2019, marking the first time in three years that the capacity has surpassed pre-pandemic levels. The strong uptick is primarily driven by belly capacity as demand in the passenger business recovers, according to IATA. Adjusting for this, freighter capacity declined 2.3%. Preighter operations ceased in March after 2½ years of continuous activity, according to IATA. “The air cargo industry is adjusting itself to the implications of the recovery in passenger demand that brings with it an expansion of belly capacity,” IATA Director General Willie Walsh said in a statement. “The demand environment is challenging to read. Tapering inflation is definitely a positive. But the degree and speed at which that could lead to looser monetary policies that might stimulate demand is unclear. The resilience that got the air cargo industry through the COVID-19 crisis is also critical in the aftermath.” The global new export orders component of the Purchasing Managers’ Index (PMI), a leading indicator of cargo demand, improved in April, according to IATA analysts. China’s PMI surpassed the critical 50-mark, indicating that demand for manufactured goods from the world’s largest export economy is growing. Consumer and producer price increases have moderated. The April Consumer Price Index was 5% in the United States, 0.3% in China and 3.5% in Japan. While Europe was higher at 8.1%, it was still below its 11.5% peak in October 2022. [caption id="attachment_57136387" align="alignnone" width="1024"] (Graphic/IATA)[/caption] Asia-Pacific Cargo volumes decreased by 0.4% YoY, a significant improvement compared to March’s 7.3% YoY decrease. Available capacity in the region increased by 41.2% YoY as more belly capacity came online from the passenger side of the business. North America Carriers saw the weakest performance of all regions with a 13.1% YoY decrease in cargo volumes. This was a drop in performance compared to March’s 9.4% YoY decrease. Airlines in the region saw a decrease in international demand in April due to volume reductions on two major trade lanes: North America-Europe decreased by 13.5% and North America-Asia decreased by 9.3%. Capacity decreased 1.5% YoY. Europe Cargo volumes decreased 8.2% YoY, a slight decline in performance compared to March’s 7.8% YoY decrease. Airlines in the region saw a significant decrease in international demand due to double-digit contractions on the North America-Europe trade lane (13.5%), as well as within Europe (16.1%). This was partially offset by strong demand on the Europe-Asia route (3.4%), which helped mitigate the overall decline in the region. Capacity increased 7.8% YoY. Middle East Carriers saw a 6.8% YoY decrease in cargo volumes, a slight decline in performance compared to the previous month’s 5.5% YoY decrease. Capacity increased 10% YoY. Latin America Carriers reported a 1.6% YoY decrease in cargo volumes, an improvement in performance compared to March’s 5.3% YoY decrease. Capacity was up 8.1% YoY. Africa African airlines had the only positive performance in April, posting a 0.9% YoY increase in cargo volumes. The region saw cargo volumes decrease 6.2% YoY last month. The Africa-to-Asia trade route experienced a significant increase in cargo demand in April, up 20% YoY. Capacity was up 5.3% YoY. Join Air Cargo Next for the upcoming webinar , “What’s new in digital cargo systems,” on Tuesday, June 13, at 11 a.m. ET. F or more information on the webinar and to register , click here.

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