THE INTERNATIONAL Air Transport Association has reported signs of improvement for global air cargo markets.
New data from IATA suggests air cargo demand rose above pre-pandemic levels in February this year.
Global demand, measured in cargo tonne-kilometres, fell 7.5% compared with February 2022, which IATA said was half the rate of annual decline seen in the previous two months (-14.9% and -15.3% respectively).
February demand for air cargo was 2.9% higher than pre-pandemic levels (February 2019). This is the first time in eight months it has surpassed pre-pandemic levels.
Capacity (measured in available cargo tonne-kilometres) was up 8.6% compared with February 2022.
IATA said the strong uptick reflects the addition of belly capacity as the passenger side of the business continues to recover. International belly-capacity in February was 57% higher than it was a year earlier.
“The story of air cargo in February is one of slowing declines,” IATA director general Willie Walsh said.
“Year-on-year demand fell by 7.5%. That’s half the rate of decline experienced in January. This shifting of gears was sufficient to boost the overall industry into positive territory (+2.9%) compared with pre-pandemic levels.
“An optimistic eye could see the start of an improvement trend that leads to market stabilisation and a return to more normal demand patterns after dramatic ups-and-downs in recent years.”
Asia-Pacific airlines saw air cargo volumes decrease by 6% in February 2023 compared with the same month in 2022.
IATA said airlines in the region benefitted from China’s reopening, which saw restrictions lifted and economic activities resumed.
Available capacity in the region increased by 19.9% compared with February 2022 as more and more belly capacity came online from the passenger side of the business.
In North America, carries posted a 3.2% decrease in cargo volumes in February 2023 compared with the same month last year.
IATA noted the region saw a significant increase in international demand in February which boosted its market share in international cargo traffic to beyond pre-pandemic levels (21.7% in February 2023 versus 18.2% in February 2019). Capacity increased 2.8% compared with February 2022.
European carriers saw the weakest performance of all regions with a 15.3% decrease in cargo volumes in February 2023 compared with the same month in 2022.
Airlines in the region continue to be most affected by the war in Ukraine. Capacity decreased 1.5% in February 2023 compared with February 2022.
In the Middle East, airlines experienced an 8.1% year-on-year decrease in cargo volumes in February 2023.
IATA said this was a slight improvement to the previous month (-11.8%). Capacity increased 9.3% compared with February 2022.
Latin American carriers reported a 2.7% decrease in cargo volumes in February 2023 compared with February 2022.
This was a drop in performance compared to January which saw a 4.6% increase. Capacity in February was up 27.6% compared with the same month in 2022.
And African airlines saw cargo volumes decrease by 3.4% in February 2023 compared with February 2022.
The Africa to Asia route area experienced significant cargo demand growth in February, up 39.5% year-on-year. Capacity was 4.7% above February 2022 levels.
