IATA: Air freight vols pick up in May
Growth in demand for air freight remains weaker than the expansion in capacity.
July 8, 2014
Air freight volumes increased slightly in June compared to May. The improvement in demand is consistent with a pick-up in world trade volumes as well as small rise in business confidence after a broadly flat trend in prior months. Growth in demand, however, was stronger and supported an increase in load factors over the month. Air freight capacity appears to have broken a side-ways trend seen throughout 2014. This is consistent with renewed signs of improvement in the demand environment. But unlike passenger markets, growth in demand for air freight remains weaker than the expansion in capacity.
First quarter financial results indicate that airlines are continuing to improve financial performance, particularly at the operating level. Operating profits have increased thanks to the performance of North American airlines. By contrast, however, in Asia Pacific, a combination of weakness in cargo revenues as well as rising cost pressures for Chinese carriers due to a depreciating local currency have had negative impacts on regional financial performance.