Airfreight capacity outstrips demand for sixth month in a row

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. 

Read more air cargo data news

Share this story

Related Topics

Latest airfreight rates news

Awery reports Red Sea-related rates rise

There are conflicting opinions about the extent to which the Red Sea shipping crisis is impacting airfreight, but airfreight rates…

Read More

Share this story

Survey: Air cargo optimistic for the year ahead

Air Cargo News recently carried out a survey of airfreight professionals and found the majority are expecting market conditions to…

Read More

Share this story

Air cargo volumes up 10% in January but rates weaken

Air cargo volumes rose 10% year on year in January, but this hasn’t resulted in higher rates due to the…

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.