Global air cargo markets are showing continuing strong annual growth in demand
Air cargo has maintained double-digit growth throughout February, says a press statement issued by IATA. it says that air cargo demand, measured in cargo tonne-kilometers (CTKs), rose by 11.9 pc compared to February 2023 levels, which were 12.4 pc for international operations.
According to a press statement by International Air Transport Association’s (IATA) data for February 2024, global air cargo markets are showing continuing strong annual growth in demand as this is the third consecutive month of double-digit year-on-year demand growth.
IATA says that capacity, measured in available cargo tonne-kilometres (ACTKs), increased by 13.4 pc compared to February 2023, which was 16 pc for international operations.
This was largely related to the increase in international belly capacity accompanying growth in passenger markets at 29.5 pc year-on-year increase, which far exceeded international capacity on freighters at 3.2 pc year-on-year increase.
Willie Walsh
“February’s demand growth of 11.9 pc far outpaced the 0.9 pc expansion in cross-border trade. This strong start for 2024 could see demand surpass the exceptionally high levels of early 2022. It also shows air cargo’s strong resilience in the face of continuing political and economic uncertainties,” says Willie Walsh, IATA’s Director General.
African airlines saw the highest annualised demand growth at 22 pc year-on-year for air cargo in February. The intra-Africa trade lane showed 42.3 pc yoy growth. February capacity increased by 28.2 pc on an annualised base.
Middle Eastern carriers saw 20.9 pc y-o-y demand growth for air cargo in February. IATA says that the Middle East–Europe market was the strongest performing with an increase of 39.3 pc growth, far ahead of Middle East-Asia which grew by 21.9 pc. February capacity increased 16.2 pc yoy.
North American carriers saw 4.2 pc y-o-y demand growth for air cargo in February, the weakest among all regions. Demand on the North America–Europe trade lane grew by 5.2 pc y-o-y while Asia–North America grew by 3.9 pc y-o-y. February capacity increased by 1.9 pc y-o-y.
The statement adds that Latin American carriers saw 13.7 pc y-o-y demand growth for air cargo in February and their capacity increased 8.9 pc y-o-y.
Asia-Pacific airlines saw 11.9 pc year-on-year demand growth for air cargo in February. This was a significant decrease compared to January’s 24.3 pc year-on-year growth, likely related to slowing activity after the Lunar New Year celebrations. Capacity increased by 23.1 pc yoy as belly capacity came online with recovery in the passenger business.
European carriers saw 14.6 pc demand growth for air cargo in February. Intra-European air cargo rose by 24.5 pc yoy, the strongest performance in almost three years. Europe – Middle East routes saw demand grow by 39.3 pc yoy, while Europe – North America expanded by 5.2 pc yoy. February capacity increased 13.2 pc yoy.
Among the many responsible factors, global cross-border trade increased by 0.9 pc in January.
The statement adds that in February, the manufacturing output Purchasing Managers’ Index (PMI) climbed to 51.2, indicating expansion. The new export orders PMI also rose to 49.4, remaining slightly below the 50 threshold that would indicate growth.
IATA says that February year-on-year inflation dropped to 2.8 pc in the EU while rising to 2.8 pc and 3.2 pc in Japan and the US respectively. After four months of deflation, China reported a 0.7 pc increase in inflation year-on-year, a positive development amid concerns over China’s economic slowdown.
