IATA study reveals tough times for air cargo
According to the IATA study published in November 2012 the air freight markets are now in decline, making life particularly difficult for airlines heavily exposed to the markets in Asia- Pacific and S America.
The study reveals that the freighter fleet has been shrinking for some time, but overall freight capacity had been increasing because of the passenger fleet. Capacity has now been cut but is still lagging behind the decline in air freight demand.
Earlier, IATA’s global traffic results for October showed a significant deterioration in freight demand. In October freight demand was 3.5 per cent below the previous year level and declined 2.2 per cent compared to September. Air freight demand fell sharply in October, down 3.5 per cent compared to October 2011 after being up 0.9 per cent in September.
The weakness in demand continues to be focused on Asia- Pacific airlines, while Middle East carriers experienced strong demand growth. Cargo demand is expected to increase by 1.4 per cent ( not enough to make up for the 2.0 per cent decline in 2012). The mismatch between growth rates for passenger and cargo demand tends to lead to cargo capacity in excess of demand and yields falling by 1.5 per cent.