WEAK DE­MAND AF­FECTS AIR CARGO VOL­UMES

Mid­dle East-based air­lines saw cargo vol­umes slump by 7% in June com­pared to the same month last year

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Mid­dle East-based air­lines saw cargo vol­umes slump by 7% in June com­pared to the same month last year

Ac­cord­ing to new data from the In­ter­na­tional Air Trans­port As­so­ci­a­tion (IATA), Mid­dle East-based air­lines saw cargo vol­umes slump by 7 per­cent in June com­pared to the same month last year, weighed by weak­en­ing de­mand in Europe and Asia-Pa­cific. Ca­pac­ity in­creased by 2.7 per­cent.

It said sea­son­ally ad­justed de­mand has been falling since late 2018, and the lat­est data show vol­umes to Europe (down by 7.2 per­cent) and Asia-Pa­cific (down by 6.5 per­cent) were par­tic­u­larly weak.

Glob­ally, IATA said air cargo de­mand de­creased by 4.8 per­cent in June com­pared to the same pe­riod in 2018. This marks the eighth con­sec­u­tive month of year-on-year de­cline in freight vol­umes.

IATA said signs of a mod­est re­cov­ery in re­cent months ap­pear to have been pre­ma­ture, with the June con­trac­tion broad-based across all re­gions with the ex­cep­tion of Africa. Ca­pac­ity growth re­mains sub­dued and the cargo load fac­tor con­tin­ues to fall.

“Global trade con­tin­ues to suf­fer as trade ten­sions—par­tic­u­larly be­tween the US and China—deepen. As a re­sult, air cargo mar­kets con­tinue to con­tract. No­body wins a trade war. Bor­ders that are open to trade spread sus­tained pros­per­ity. That’s what our po­lit­i­cal lead­ers must fo­cus on,” said Alexan­dre de Ju­niac, IATA’s di­rec­tor gen­eral and CEO.

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