IATA reports continued double digit demand growth for freight
The International Air Transport Association (IATA) released data for global air freight markets showing continued double digit demand growth for freight.
October 6, 2017
The outlook for air freight remains strong. With several months of double-digit growth in 2017, the current IATA forecast of 7.5% growth in air freight demand for 2017 appears to have significant upside potential even if we are approaching a cyclical peak.
“Air cargo had another stellar performance in August. Demand for air cargo grew at a double-digit rate for the fourth month in a row – outperforming demand for passenger travel for the fourth consecutive month. Rapid growth in cargo demand means that cargo capacity is now growing in response to real cargo demand rather than automatically as carriers responded to passenger demand. The pace of capacity growth, however, has slowed even as freighter fleets are being utilized more intensely. Overall, that should be good news for much beleaguered cargo yields,” said Alexandre de Juniac, IATA’s Director General and CEO.
All regions with the exception of Latin America posted double digit freight growth in August 2017.
Asia-Pacific airlines’ freight volumes grew 11.3% in August 2017 compared to the same period a year earlier, and capacity increased by 5.7%. Demand growth was strong on all the major routes to, from and within Asia-Pacific, consistent with strong export order books for the region’s manufacturers. Seasonally-adjusted international freight volumes increased in August after a slight dip in July and are now almost 6% above the volumes reached following the 2010 post-global financial crisis bounce-back.