ME air cargo demand declines in January

4.1%

dubai — Freight volumes of the Middle East carriers contracted 4.5 per cent in January 2019 compared to the year-ago period while globally the decline was at a lesser pace at 1.8 per cent, according to the data released by the International Air Transport Association.

Middle Eastern airlines reported in January a capacity surge of 4.1 per cent as seasonally-adjusted international air cargo demand, which trended upwards for the past three months helped by stronger trade to/from Europe and Asia, has started to decline.

Global air freight markets demand, measured in freight tonne kilometers (FTKs), decreased 1.8 per cent in January 2019, compared to the same period in 2018, the worst performance in the last three years.

Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 4.0 per cent year-on-year in January 2019. This was the eleventh month in a row that capacity growth outstripped demand growth.

Demand for air cargo continues to face significant headwinds. Global economic activity and consumer confidence have weakened. And the Purchasing Managers Index (PMI) for manufacturing and export orders has indicated falling global export orders since September 2018.

“Air cargo markets contracted in January. This is a worsening of a weakening trend that started in mid-2018. Unless protectionist measures and trade tensions diminish there is little prospect of a quick re-bound,” said Alexandre de Juniac, Iata’s Director General and CEO.

In a statement, Iata said only two of six regions reported yearon-year demand growth in January 2019 – North America and Africa. Asia-Pacific, Europe and the Middle East all contracted, while Latin America was flat.

Asia-Pacific airlines saw demand for air freight shrink by 3.6 per cent in January 2019, compared to the same period in 2018. Weaker manufacturing conditions for exporters in the region, ongoing trade tensions and a slowing of the Chinese economy impacted the market. Capacity increased by 4.1 per cent.

North American airlines posted the fastest growth of any region for the eighth consecutive month in January 2019, with an increase in demand of 3.3 per cent compared to the same period a year earlier.

European airlines experienced a contraction in freight demand of 3.1 per cent in January 2019 compared to a year ago while capacity increased by 2.8 per cent year-on-year. “Weaker manufacturing conditions for exporters, and shorter supplier delivery times particularly in Germany, one of Europe’s key export markets, impacted demand. Trade tensions and uncertainty over Brexit also contributed to a weakening in demand, Iata said.

Surge in January’s regional capacity