Air passenger traffic growth continues to moderate, freight industry remains in decline

October continued the general pattern throughout 2019 of moderation in global passenger growth and contraction for the freight industry, according to a new report from Airports Council International (ACI) World.

Global passenger traffic grew by +2.3% in October, slightly less than the +2.6% rate recorded in September, ACI said.

“The figure remained in line with the moderation pattern observed since June, in which growth rates for the industry have hovered between +2% and +3%,” it added. Year-to-date growth was recorded at +3%.

Against a constantly challenging global economic backdrop, the decline in the global air freight industry continued in October, falling by -2.9% year-over-year.

“This was a slight improvement over September’s figure of -4% and was quite close to the industry’s year-to-date result which stands at -3%,” said ACI.

“A weakened freight industry and a moderation in passenger traffic growth was recorded in October which was mostly a continuation of the general trend in 2019,” ACI World director general Angela Gittens said. The domestic freight market managed a slight recovery but with the volatile trade environment still present in the global stage, end-of-year results could go either way, she said.

“The possibility of a decline in total freight volumes by year’s end, due primarily to international freight performance, however, is fairly assured.”

For the passenger market, the international segment grew +3.2% during the month, with year-to-date reaching +4.2%. Domestic passenger growth was just +1.5%, bringing year-to-date to +2.1%.

By region, Asia-Pacific performed the worst of the three major markets. It grew +1.1% year-over-year in October, maintaining its +1.7% year-to-date growth with two months left to the year. The region’s domestic market, with strong links to its major markets such as China, India and Japan, only gained +0.2% during the month.

Said ACI: “Now standing at +0.4% on a year-to-date basis, the segment is vulnerable to fall into negative territory by the end of the year.”

North America was once again the best-performing major market in October, posting a +3.2% year-over-year growth rate. Its year-to-date stood at +3.5%.

Europe only gained +2% during the period, just below its September’s +2.1% figure. The region’s year-to-date growth stood at +3.4%, driven by a particularly resilient international passenger segment.

Africa posted +5.2% growth in October, slower than September’s +6.7%, continuing a downtrend that started a few months back. Its year-to-date growth remains at +6.9%, and should once again be the top-ranking region for growth in 2019.

The Middle East and Latin America-Caribbean gained +5.2% and +3.1%, respectively, in October year-on-year. Year-to-date results for the Middle East was a subdued +2.2%, while Latin America-Caribbean stood at +3.9%, second only to Africa at this point.

For the freight industry, October figures showed a slight improvement over September, with the domestic segment posting positive growth during the period.

Global freight volumes declined by -2.9% but the domestic market reached +0.7% year-over-year, maintaining year-to-date results in the positive, at +0.6%.

Asia-Pacific volumes fell by -4% in October, bringing the region’s year-to-date growth rate to -5.5%. Both the domestic and international segments remained in the negative in Asia-Pacific, though its international freight market suffered the brunt of the losses, reaching -6.2% on a year-to-date basis.

Europe experienced the least decline among the major markets in October, down by -1.4%, bringing its year-to-date figure to -2.7%.

North America declined by -1.5%, with its year-to-date growth rate at -0.3%. The region’s domestic market remained in the positive, at +2.9% year-to-date, but its international market fell to -4.9%.

Africa, the Middle East and Latin America-Caribbean all posted declines in October. The regions declined by -3.4%, -4%, and -8% year-over-year, respectively. All of these regions stood at a negative rate for the first 10 months of the year; Africa reached -0.2%, while the two other regions were both at -3.1%.

Photo by chuttersnap on Unsplash