July recovery slows
24 / 08 / 2010
FIGURES for July show continued strengthening of demand for cargo, with traffic rising 22.7 per cent from last year.
This is less than June’s growth of 26.6 per cent but this is likely due to the fact that by July 2009 traffic was already starting to recover.
The recovery is apparently slowing. During the second half of 2009, cargo demand was up 28 per cent compared to the first half of the year because of businesses re-stocking their inventories. With that re-stocking cycle completed, airfreight demand will be driven by consumer spending and business capital expenditure, the former is weak but the latter is strengthening, which could continue to drive robust freight growth. In addition, July’s demand was four per cent higher than pre-crisis levels in early 2008.
Nevertheless, European carriers continue to lag behind other regions with only a 12.1 per cent increase in July, less than half the 25.3 per cent increase by Asia-Pacific carriers or the 27.1 per cent growth recorded by North American carriers.
Weak consumer spending, lack of confidence in the economy and strikes continue to heavily affect the industry’s recovery.