Global Air Cargo Demand Up --- IATA

The International Air Transport Association (IATA) reported a positive trend in global air cargo demand for October 2023, marking the third consecutive month of stronger year-on-year demand.

Growth was primarily attributed to the expansion of belly capacity, notably with a 30.5% year-on-year increase in international belly capacity due to strength in passenger markets. I Photo: FedEx

The data showed a 3.8% increase in global demand, measured in cargo tonne-kilometers (CTKs*), compared to October 2022, with international operations slightly lagging at 3.5%.

Capacity, measured in available cargo tonne-kilometers (ACTKs), also saw a significant increase of 13.1% compared to October 2022 (11.1% for international operations).

This growth was primarily attributed to the expansion of belly capacity, notably with a 30.5% year-on-year increase in international belly capacity due to strength in passenger markets.

Key points in the operating environment include:

• Economic activities slowed in October, as indicated by the Purchasing Managers’ Index for manufacturing output and export orders for major economies remaining below the critical 50 mark.

• Inflation in major advanced economies continued to ease, reaching between 3% and 4% for the US and the EU, respectively, in October. China's Consumer Price Index (CPI) indicated deflation for the second time this year, raising concerns of an economic slowdown.

• Global trade stabilized in September after reversing its downward trajectory. Although below its 2022 peak, global cross-border trade is more than 5% above pre-pandemic levels.

• Cargo yields, after a continuous 17-month decline, saw a 2.6% month-on-month gain in September and continued to rise in October, remaining well above pre-pandemic levels.

Willie Walsh, IATA’s Director General, commented on the findings, stating that while the air cargo industry is on course to end 2023 on a stronger note, caution is warranted due to the lingering uncertainty in the global economy.

He emphasized that a robust peak year-end season would be crucial in navigating potential economic fluctuations in 2024.

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