Volumes making slight recovery, yields still under pressure: IATA
Volumes continue their improving trend witnessed toward the end of 2015, and reached its fastest pace in January since April of last year, but freight load factors fell 1.8 percentage points, however, indicating that yields are likely to come under further pressure.
March 7, 2016
By Donald Urquhart
The International Air Transport Association (IATA) released data for global air freight markets in January showing a rise in freight tonne kilometers (FTK) of 2.7 per cent compared to January 2015. This continues the improving trend witnessed toward the end of 2015, and is the fastest pace since April of last year. The freight load factor (FLF) fell 1.8 percentage points, however, indicating that yields are likely to come under further pressure.
Total FTKs in January surpassed the previous all-time peak reached in February 2015. All regions except the smallest markets of Africa and Latin America expanded in January, but all regions reported declines in the FLF. Despite this good start, the underlying weak trade performance makes it unlikely that growth will accelerate significantly in the coming months.
“It is good news that volumes are growing, but yields and revenues are still under tremendous pressure,” said Tony Tyler, IATA’s director general and CEO. “Air cargo plays a vital role in our globalised and fast-paced world in which trade is the foundation for long-term prosperity. Removing barriers to trade is a win-win. It will shore-up the foundations for stronger economies. And an improved business environment for air cargo will help facilitate much needed technology and process investments so that the industry will be an even stronger catalyst for growth and development.