Air Freight sees 4.1% growth during April, says IATA
May 30, 2018: The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 4.1 percent in April 2018, compared to the same period the year before. This was up from the 1.8 percent growth in annual demand recorded in March 2018.
May 30, 2018: The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 4.1 percent in April 2018, compared to the same period the year before. This was up from the 1.8 percent growth in annual demand recorded in March 2018.
Freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 5.1 percent year-on-year in April 2018. This was the second time in 21 months that capacity growth outstripped demand growth.
After a sharp fall in March 2018, to a 23-month low, global air freight volumes recovered slightly in April 2018. The pace at which demand is growing, however, remains significantly slower than in much of 2017.
The weaker growth in air cargo is primarily due to the end of the restocking cycle, during which businesses rapidly increase their inventory to meet unexpectedly high demand. This is consistent with demand drivers moving away from the highly supportive levels seen last year. The Purchasing Managers’ Index (PMI) for manufacturing and export orders fell in April 2018 to its lowest level since 2016. A softening of global trade is also evident with containerised freight demand slowing in tandem with air freight demand. Seasonally-adjusted freight volumes continue to track sideways.
"April saw a strengthening from the abrupt slowdown in growth experienced in March. This is good news. We remain cautiously optimistic that demand will grow in the region of 4 percent this year. But the forecast appears to have increasing downside potential. Oil prices continue to rise as does protectionist rhetoric. Borders open to people and to trade drive economic growth and social prosperity. We are all disadvantaged when they are closed," said Alexandre de Juniac, IATA's director general and CEO.
Asia-Pacific airlines saw freight demand recover in April 2018 to grow 3.9 percent compared to the same period last year. Capacity increased by 6.7 percent. Seasonally-adjusted volumes are broadly trending sideways. As the largest freight-flying region, carrying close to 37 percent of global air freight, the risks from protectionist measures impacting the region are disproportionately high.
April 2018 | World share¹ | FTK | AFTK | FLF | FLF |
Total Market | 100.0% | 4.1% | 5.1% | -0.5% | 44.8% |
Africa | 1.9% | 5.6% | 23.0% | -3.5% | 21.3% |
Asia Pacific | 36.9% | 3.9% | 6.7% | -1.5% | 54.6% |
Europe | 24.2% | 2.4% | 4.0% | -0.7% | 46.7% |
Latin America | 2.7% | 10.6% | -4.6% | 5.3% | 38.9% |
Middle East | 13.7% | 7.3% | 4.8% | 1.0% | 44.4% |
North America | 20.6% | 3.2% | 3.4% | -0.1% | 35.8% |
¹% of industry FTKs in 2017 ²Year-on-year change in load factor ³Load factor level