IATA: Air cargo improves in December but declines for the full year
31 / 01 / 2024
Photo: Travel mania/ Shutterstock
Air cargo demand surged in December last year but it was not enough to push overall figures for the year into positive territory.
IATA figures show that air cargo tonne kms (CTK) for December were up 10.8% year, but CTKs for the whole year were down 1.9% on 2022 levels and 3.6% behind 2019.
The airline association described December’s performance as “exceptionally strong” and said that it was the strongest annual growth performance over the past two years.
It said there was a modest improvement in demand and yields in December due to a modal shift as a result of the Red Sea crisis’ impact on container shipping.
Willie Walsh, IATA director general, said: “The recent disruption to maritime routes in the Red Sea has seen some shippers pivot to air cargo. The increased demand saw a spike in air cargo yields on related trade lanes.
“A similar spike is expected in January as disruptions intensified. While not all cargo is suitable for air transport, it is a vital option for some of the most urgent shipments in extraordinary circumstances. And that is critical to the continuity of the global economy.”
This year, IATA is expecting air cargo demand to improve by 4.5%.
Meanwhile, capacity for the year was up 11.3% on last year and as a result, the average cargo load factor was down 1.2 percentage points to 45.9%.
“Despite political and economic challenges, 2023 saw air cargo markets regain ground lost in 2022 after the extraordinary Covid peak in 2021,” said Walsh.
“Although full-year demand was shy of pre-Covid levels by 3.6%, the significant strengthening in the last quarter is a sign that markets are stabilising towards more normal demand patterns.
“That puts the industry on very solid ground for success in 2024. But with continued, and in some cases intensifying, instability in geopolitics and economic forces, little should be taken for granted in the months ahead.”
Looking at economic indicators, IATA said that cross-border trade figures for October improved for the third month in a row while inflation in the US and EU was below 3.5%.
On the other hand, China is battling deflation and manufacturing/export order indices continue to indicate contraction.
Looking at regional performance, Asia Pacific airlines saw demand increase by 0.9% year on year in 2023, while in December there was an 18.5% improvement.
North American carriers reported “the worst year-on-year performance of all regions”, with a 5.7% decrease in demand in 2023. In December this decrease narrowed to 2%.
European carriers posted a 3.9% decrease in demand in 2023, but in December there was an 8.6% increase.
Airlines based in the Middle East reported an increase in demand of 1.6% for the year and an 18.3% increase for December.
Latin American carriers posted the strongest year-on-year performance of all regions, with a 2% increase in demand in 2023, while in December this improved to 13.2%.
African airlines reported a decrease in demand of 1.8% for the year and in December there was a 1.2% fall.
