Air cargo demand sees first annual growth in 19 months

August air cargo data shows that demand rose year over year for the first time in 19 months. Global demand, measured in cargo tonne-kilometers (CTKs), increased 1.5% YoY in August, according to data released Tuesday by IATA . IATA Director General Willie Walsh called the growth “welcome news,” but cautioned that “it is off a low 2022 base and market signals are mixed.” Capacity, measured in available CTKs, increased 12.2% YoY, which IATA mainly attributes to belly capacity, which rose 30% YoY due to the summer travel season. “Inflation saw a mixed picture in August, with an increase in U.S. consumer prices for the second month in a row,” IATA’s report stated. “Meanwhile in Europe and Japan, consumer and producer prices fell. In China, which is fighting deflationary pressures, consumer prices rose.” Global cross-border trade contracted for the fourth month in a row in July, decreasing 3.2% YoY, according to the most recent data from IATA. “This reflects the cooling demand environment and general macroeconomic conditions,” the report stated. In August, both the manufacturing output Purchasing Managers Index (PMI), at 49.4, and new export orders PMI, at 47, saw a slight improvement from the previous month. “They remained, however, below the critical threshold represented by the 50 mark, indicating a continuing, if slower, annual decline in global manufacturing production and exports,” the report stated. Despite this, Walsh said he is pleased with the increased PMI figures. “Looking ahead, while many uncertainties remain, we can take some optimism from PMI data moving towards positive territory,” Walsh said. “This is particularly significant as we head into air cargo’s traditional peak year-end season.” [caption id="attachment_57138462" align="alignnone" width="1024"] (Photo/IATA)[/caption] Asia Pacific Asia-Pacific airlines saw air cargo volumes increase by 4.9% YoY, significantly better than July’s 2.3% YoY increase. Carriers in the region benefited from growth on the Europe-Asia and Middle East-Asia trade lanes. The within-Asia trade lane also improved in August, with international CTKs contracting by 4.7% YoY compared to the 9.7% annual decline in July. Available capacity for the region’s airlines increased by 28.5% YoY as belly capacity increased. North America Carriers saw air cargo volumes decrease by 1.2% YoY, which was an improvement in performance compared to July, which was down 5.4% YoY. Carriers in the region benefited from a slight improvement in growth on the North America-Europe and Asia-North America trade lanes. Capacity in the region increased 2.7% YoY. Europe European carriers saw air cargo volumes decline by 0.2% YoY, an improvement from July, which was down 1% YoY. Volumes saw an increase due to the Europe-Asia performance and a 0.4% increase in the Middle East-Europe markets. Capacity increased 3.6% YoY. Middle East Middle Eastern carriers saw a 1.4% YoY increase in cargo volumes, an improvement from July’s decline of 0.1% YoY. The demand on the Middle East-Asia market has been trending upward in the past three months, expanding its year-on-year growth from 1.8% in June to 3.5% in August. Capacity increased 15.7% YoY. Latin America Latin American carriers had the strongest performance in August, with a 6.2% increase YoY in cargo volumes, a significant jump from July’s increase of 0.5% YoY. Capacity was up 13.7% YoY. Africa African airlines had the weakest performance in August, with a 4.7% decline YoY in cargo volumes. This was a significant decrease in performance compared to July, which increased 2.3% YoY. Africa-Asia routes declined by 1.1% in August, following an 11.2% growth in July. Capacity was up 3.8% YoY.

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