Air cargo traffic up 6% in April

Air cargo traffic saw strong growth in April, providing an encouraging outlook for the industry, according to data released today by IATA. April’s air cargo traffic , measured in cargo tonne kilometers (CTK), rose 5.8% year over year. In March, traffic rose 4.4% YoY , a historic peak for that month, following a slight contraction in February of 0.1% YoY. Traffic on international lanes rose 6.5% YoY. Capacity, measured in available CTKs, rose 6.3% YoY and rose 6.9% YoY for international operations. “Seasonal demand for fashion and consumer goods — front-loading ahead of U.S. tariff changes — and lower jet fuel prices have combined to boost air cargo,” IATA Director General Willie Walsh said in the release. “With available capacity at record levels and yields improving, the outlook for air cargo is encouraging.” It remains uncertain how the tariffs imposed by the United States will affect global trade, especially as the U.S. Court of International Trade ruled May 28 that President Donald Trump wrongly invoked a 1977 law when imposing many of his tariffs. The court has called for certain tariffs to be reversed, but a federal appeals court temporarily paused the ruling today. External factors The release highlighted these operating environment factors: Global industrial production rose 3.2% YoY in March and global trade grew 6.5% YoY in March, the latest data available. Jet fuel prices dropped 21.2% YoY and 4.1% month over month, the third consecutive monthly decrease. April’s Purchasing Managers’ Index (PMI) for global manufacturing output rose to 50.5. A PMI above 50 indicates growth and one below 50 indicates contraction. The PMI for new export orders fell to 47.2. “While April brought good news, stresses in world trade are no secret,” Walsh said. “Shifts in trade policy, particularly in the U.S., are already reshaping demand and export dynamics. Airlines will need to remain flexible as the situation develops over the coming months.” [caption id="attachment_57289174" align="aligncenter" width="1313"] (Courtesy/IATA)[/caption] Regional performance Latin American carriers saw the most YoY traffic growth of all regions, while the Middle East saw the least YoY growth. By region YoY: Latin American carrier traffic grew 10.1% and capacity grew 8.5%; Asia-Pacific carrier traffic grew 10% and capacity grew 9.4%; African carrier traffic grew 4.7% and capacity grew 9.7%; North American carrier traffic grew 4.2% and capacity grew 4.6%; European carrier traffic grew 2.9% and capacity grew 3.3%; and Middle Eastern carrier traffic grew 2.3% and capacity grew 5.5%. The Europe-Asia trade lane grew the most in April and accounted for 20.5% of the market share. The largest trade lane by market share at 24.4%, Asia-North America grew only 1.9% YoY. By trade lane: Europe-Asia grew 11.3% YoY, the 26th consecutive month of growth; Intra-Asia grew 10% YoY, the 18th consecutive month of growth; North America-Europe grew 9.6% YoY, the 15th consecutive month of growth; Middle East-Asia grew 6.7% YoY, the second consecutive month of growth; Asia-North America grew 1.9% YoY, the second consecutive month of growth; Middle East-Europe fell 4.6% YoY, the fourth consecutive month of contraction; Africa-Asia fell 7.9% YoY, the fifth consecutive month of contraction; and Intra-Europe fell 8.8% YoY, the second consecutive month of contraction since IATA began providing data on this trade lane in March.

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