African/Latam airlines beat global peers in June cargo volumes

African airlines saw cargo volumes increase 5.7 percent in June 2022 compared to June 2021 compared to global demand which was 6.4 percent lower than June 2021 levels

African airlines introduced additional capacity, which was 10.3 percent above June 2021 levels and significantly more than the global average which was 6.7 percent higher than June 2021 levels, according to data released by the International Air Transport Association's (IATA).

Latin American carriers reported an increase of 19.6 percent in cargo volumes in June 2022 compared to June 2021. "This was the strongest performance of all regions. Airlines in this region have shown optimism by introducing new services and capacity, and in some cases investing in additional aircraft for air cargo in the coming months. Capacity in June was up 29.5 percent compared to the same month in 2021. Demand for the first half-year was 21.8 percent above 2021 levels and half-year capacity was 32.6 percent above 2021 levels. This was the strongest first half performance of all regions."

Air cargo performance is being impacted by several factors, says IATA:

*Trade activity ramped-up slightly in June as lockdowns in China due to Omicron were eased. Emerging regions (Latin America and Africa) also contributed to growth with stronger volumes.

*New export orders, a leading indicator of cargo demand and world trade, decreased in all markets, except China; and

*The war in Ukraine continues to impair cargo capacity used to serve Europe as several airlines based in Russia and Ukraine were key cargo players.

"Air cargo demand over the first half of 2022 was 2.2 percent above pre-Covid levels (first half 2019)," says Willie Walsh, Director General, IATA. "That's a strong performance, particularly considering continuing supply chain constraints and the loss of capacity due to the war in Ukraine. Current economic uncertainties have had little impact on demand for air cargo, but developments will need to be closely monitored in the second half."

June regional performance
Asia-Pacific airlines saw cargo volumes decline 2.1 percent in June 2022 compared to the same month in 2021. "This was a significant improvement over the 6.6 percent decline in May. Demand for the first half-year was 2.7 percent below 2021 levels. Airlines in the region have been heavily impacted by lower trade and manufacturing activity due to Omicron-related lockdowns in China." This, however, continued to ease in June as restrictions were lifted. Available capacity in the region fell 6.2 percent compared to June 2021.

North American carriers posted a 6.3 percent drop in cargo volumes in June 2022 compared to June 2021. Demand for the first half-year was 3.3 percent below 2021 levels. "High inflation is affecting the region. Demand in the Asia-North America market is falling and the Europe–North America market has started to decline." Capacity was up 5.6 percent in June 2022 and up 6.1 percent for the first half-year of 2022.

European carriers saw a 13.5 percent decrease in cargo volumes in June compared to the same month in 2021. "This was the weakest performance of all regions. It was, however, a slight improvement over the previous month's performance, which saw the sharpest fall in demand since early 2022. This is attributable to the war in Ukraine. Labour shortages and lower manufacturing activity in Asia due to Omicron also affected volumes. Demand for the first half-year was 7.8 percent below 2021 levels while capacity was up 3.7 percent.

Middle Eastern carriers experienced a 10.8 percent YoY decrease in cargo volumes in June. "Significant benefits from traffic being redirected to avoid flying over Russia failed to materialise. Capacity was up 6.7 percent compared to June 2021. Demand for the first half-year was 9.3 percent below 2021 levels, the weakest first half performance of all regions."

African airlines saw demand for the first half-year increase 2.9 percent above 2021 levels, and half-year capacity was 6.9 percent above 2021 levels.