Air cargo demand spikes by double digits for 5th month

Global air cargo markets are showing strong annual growth in demand into the second quarter of 2024. April demand, measured in cargo tonne kilometers (CTK), rose 11.1% compared with April 2023 and rose 11.6% year over year for international operations, according to April data released this week by IATA . April is the fifth consecutive month of double-digit YoY demand growth. Capacity, measured in available CTKs, increased 7.1% YoY and 10.2% YoY for international operations, according to IATA. “While many economic uncertainties remain, it appears that the roots of air cargo’s strong performance are deepening.” — IATA Director General Willie Walsh Growth drivers The release highlighted the following operating environment factors: The Purchasing Managers’ Index (PMI) for global manufacturing output and new export orders turned positive at 51.5 and 50.5, respectively, in April. This is the first time in two years that the new export orders PMI has been above 50, indicating growth. Industrial production increased 1.6% YoY in March, while global cross-border trade contracted 0.8% YoY in March. Inflation remained relatively stable across the United States, European Union and Japan in April with rates at 3.4%, 2.6% and 2.5%, respectively. China reported a 0.2% YoY increase in consumer prices, “a positive signal amid concerns over China’s economic slowdown,” according to IATA. “In recent months, air cargo demand grew even when the Purchasing Managers’ Index was indicating the potential for contraction,” IATA Director General Willie Walsh said in the release. “With the PMI now indicating growth, the prospects for continued strong demand are even more robust.” [caption id="attachment_57143362" align="alignnone" width="1024"] (Courtesy/IATA)[/caption] Asia Pacific Asia-Pacific airlines in April saw 14% YoY demand growth for air cargo, the most across all regions. The region’s March YoY growth was 14.3%. Demand grew: Within the Asia market by 13.2% YoY; On the Asia-Europe route by 17.7% YoY; and On the Middle East-Asia route by 10.4% YoY. Capacity in the Asia-Pacific region increased by 7.8% YoY in April. North America North American carriers saw 7% YoY demand growth, the weakest among all regions. The region’s March YoY growth was 0.9%. Demand on the Asia-North America trade lane grew 7.3% YoY, while the North America-Europe route grew 5.6% YoY, marking the largest demand growth for this route since September 2022, according to IATA. April capacity increased 4% YoY. Europe European carriers saw 12.7% YoY demand growth in April, compared with 10% YoY growth in March. Intra-European air cargo demand rose 34.4% YoY, the highest annual growth in more than a decade and a jump of 8.1 percentage points from March. Europe-Middle East routes saw demand increase by 30.1%, a drop of 8.5 percentage points from March. April capacity rose 10.3% YoY. Middle East Middle Eastern carriers saw 9.4% YoY growth in April, compared with 19.9% YoY growth in March. The Middle East-Europe market grew 30.1% YoY in April and Middle East-Asia grew 10.4% YoY. Capacity increased 5.7% YoY. Latin America Latin American carriers saw 11.7% YoY growth in April, compared with 9.2% YoY growth in March. Capacity increased 9.8% YoY. Africa African airlines saw 10.6% YoY growth in April, compared with 14.2% YoY growth in March. Demand on the Africa-Asia market increased 25.8% YoY in April. Capacity increased 18.7% YoY. Register here for Air Cargo Next ’s upcoming webinar, “Air Cargo and Pharma: Using Technology to Save Lives,” on Tuesday, June 18, at 11 a.m. ET.

Air cargo demand spikes by double digits for 5th month

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