IATA confirms slowdown in air cargo demand growth in May
07 / 07 / 2016
Airfreight demand growth slowed in May after showing signs of improvement in April.
The latest IATA figures show a 0.9% year on year increase in freight tonne km demand in May. This follows a 3.2% improvement in April.
However, at the time the April figures were announced, IATA warned prospects looked bleak, while analyst WorldACD pointed out that the April Easter holiday fell much earlier in the month in 2016, pushing some of the negative impact of that holiday into March, while there was also an extra weekend, the busiest time of the week.
IATA added that yields remained under pressure during May as freight capacity measured in available freight tonne km increased ahead of demand at 4.9% year-on-year.
IATA director general and chief executive Tony Tyler said: "Global trade has basically moved sideways since the end of 2014 taking air cargo with it. Hopes for a stronger 2016 are fading as economic and political uncertainty increases.
"Air cargo is vital to the global economy. But the business environment is extremely difficult and there are few signs of any immediate relief."
There were some positives, with European airlines recording a 4.5% year on year increase in demand in May and Middle Eastern carriers registering a 3.2% improvement.
That said, capacity increased ahead of demand in both regions.
Elsewhere, Asia Pacific airlines reported a 0.7% decrease in demand, in North America there was a 0.2% decline, in Latin America a 9.7% decrease and in Africa a 0.3% increase.