Global air freight demand inched up in October year-on-year, while passenger traffic enjoyed healthy growth, based on data released by the International Air Transport Association (IATA).
The air freight market rose 3.1% in October 2018 year-on-year, the pace of growth up from a 29-month low of 2.5% in September. Freight capacity increased by 5.4% year-on-year in October, the eighth month in a row that capacity growth outstripped demand.
Growing international e-commerce and an upturn in the global investment cycle are supporting freight growth, but IATA found that demand continues to be negatively impacted by a contraction in export order books in all major exporting nations in October, longer supplier delivery times in Asia and Europe, and weakened consumer confidence compared to very high levels at the beginning of 2018.
“Cargo is a tough business, but we can be cautiously optimistic as we approach the end of 2018,” said Alexandre de Juniac, IATA’s director general and CEO.
“Slow but steady growth continues despite trade tensions. The growth of e-commerce is more than making up for sluggishness in more traditional markets. And yields are strengthening in the traditionally busy fourth quarter. We must be conscious of the economic headwinds, but the industry looks set to bring the year to a close on a positive note,” he added.
All regions reported year-on-year cargo demand growth in October 2018, except Africa which contracted.
Asia-Pacific airlines saw demand expand by 1.9% in October 2018 compared to the same period last year. This pace of growth was relatively unchanged from the previous month. Weaker manufacturing conditions for exporters, and longer supplier delivery times, particularly in China and Korea, impacted the demand.
“As the largest freight-flying region, carrying more than one-third of the total, the risks from rising trade tensions are disproportionately high,” said IATA.
Meanwhile, global passenger traffic results for October showed a 6.3% spike in demand compared to the same month last year. This marked a rebound from the 5.5% growth recorded in September, which was an eight-month low.
Capacity also grew 6.3% and load factor was flat at 81.1%, matching last year’s record for the month.
“October’s healthy performance is reassuring after the slower demand growth in September—some of which was attributable to weather-related disruptions,” said de Juniac. “However, the bigger picture is that traffic growth has moderated compared to earlier in the year, reflecting a more mixed economic backdrop and reduced demand stimulation from lower fares.”
Asia-Pacific airlines’ traffic rose 5.8% compared to the year-ago period, up from 5.4% year-over-year growth in September. Capacity climbed 5.4% and load factor rose 0.3 percentage points to 78.9%.
“Underlying passenger demand is continuing to be supported by structural changes, including rising living standards in the region, as well as network changes that stimulate demand,” observed IATA.
Photo: Ashashyou
