Airfreight capacity outstrips demand for sixth month in a row
17 / 10 / 2018
Airline freight capacity growth continues to outstrip demand, according to the final Q2 2018 financial data released by IATA.
“Available freight tonne kilometres (AFTKs) grew by 4.5% year-on-year in August, up from 3.9% in July and faster than the corresponding annual demand growth rate for the sixth month in a row.”
The Airlines Financial Monitor report states that faster capacity growth compared to demand has seen the industry-wide load factor fall by 0.9 percentage points compared to August 2017.
The good news for the airlines is that “yields appear to be holding up”.
In contrast, the industry-wide passenger load factor rose by 0.7 percentage points relative to August 2017, to an all-time (unadjusted) record high of 85.3%.
However, airline profitability overall has declined compared to the same quarter a year ago. The report notes that oil prices have risen by around 40% over the past year and jet fuel prices averaged more than $90 per barrel in September.
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