The world’s airports reported slower growth in cargo volumes for September in comparison to passenger traffic, according to a new report by Airports Council International (ACI).
“Air freight markets remain relatively weak as compared to passenger traffic. An emerging market slowdown led by China has resulted in more subdued growth in air freight volumes across the world’s markets,” said the council.
Volumes increased by 1.4% year-over-year in September, and on a year-to-date basis, rose by 2.3% across the globe for the first three quarters of 2015.
Hong Kong, the world’s busiest international freight hub, reported modest gains of 1.1% in September compared to the same month a year ago. The major Chinese hubs of Shanghai and Beijing recorded flat growth.
The Asia-Pacific region as a whole experienced a slight gain of 0.5% in airfreight traffic in September, said ACI.
On the other hand, amid stronger economic fundamentals in advanced economies, North American airfreight hubs achieved the greatest gains in volumes in September. Cargo expanded 4.4%, attributed mostly to the boost in internal domestic demand. As North America’s international freight inched up by only 0.9%, the region’s domestic airfreight market grew by 6.9% year-over-year in September. Memphis, a major FedEx hub, and Louisville, the UPS hub, each experienced an increase of 5.7% and 6.6%, respectively, in year-over-year growth in volumes.
SIA narrows cargo loss
As this developed, Singapore Airlines’ (SIA) cargo unit booked a loss of US$12 million for the six-month period ended September 2015, a narrowing of the $34 million loss it chalked up in the first half of fiscal year 2014-2015.
SIA Cargo saw its cargo yield in the first half of 2015-2016 fall 8.5% mainly on lower fuel surcharges, while freight growth was flat, resulting in lower revenue, down by $86 million, which was offset by a $108 million reduction in expenditures, mostly fuel costs.
In the second quarter of fiscal year 2015-2016, SIA Cargo logged an operating loss of $3 million, which is still better than its loss of $16 million in the second quarter of fiscal year 2014-2015. Cargo performance in freight tonne kilometers in the first half was flat year-over-year.
In its outlook, SIA said, “Uncertainty in economic conditions persists, exacerbated by concerns about China’s slowing economy, which have led to weakening emerging-market currencies and volatility in stock markets. The outlook for both passenger and cargo traffic is cautious.”
Photo: Toyotaboy95
