Subscribe Free
in Air Transport

Middle East carriers saw growth of 0.8% in March

Posted 2 May 2018 · Add Comment

The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), rose 1.7% in March 2018, compared to the same period the year before. This was five percentage points lower than the February result and the slowest pace of growth in 22 months.

 

The year-on-year increase in capacity, measured in available freight tonne kilometers (AFTK) fell to 4.4% compared to 6.3% in February. This was the first time in 20 months, however, that annual capacity rose faster than demand.

The sharp growth slowdown is principally due to the end of the restocking cycle, during which businesses rapidly increased their inventory to meet unexpectedly high demand. A softening of global trade is also evident.

“It’s normal that growth slows at the end of a restocking cycle. That clearly has happened. Looking ahead we remain optimistic that air cargo demand will grow by 4-5% this year. But there are obviously some headwinds. Oil prices have risen strongly, and economic growth is patchy. The biggest damage could be political. The implementation of protectionist measures would be an own-goal for all involved—especially the US and China,” said Alexandre de Juniac, IATA’s Director General and CEO.

Middle East carriers saw growth of 0.8% in March compared to March 2017. This is consistent with the general weakening in regional performance over recent months, and in particular may reflect an especially strong March 2017 result.

Other Regional performance 

All regions except Latin America reported year-on-year declines in growth in March, with Africa in negative territory.

African FTKs fell by 3.4% in March. This result may, however, be influenced by the comparison with unusually strong growth in March 2017. Indeed, Africa has reported the fastest growth of all regions for 17 of the last 18 months, so it would be premature to suggest this is the start of a negative trend. 

Asia-Pacific carriers reported FTK growth of just 0.7% compared to the same period a year ago. Export orders in Japan and Korea have fallen in recent months and the region remains particularly exposed to the impact of protectionist measures.

European airlines FTKs rose 1.0% in March compared to March 2017. A stronger Euro and a softening of export orders in Germany partially explain the result, but the seasonally-adjusted trend in FTKs has been slowing in recent months.

Latin American airlines posted growth of 15.5% in March compared to a year ago, the only region to improve on its performance compared to February 2018. Freight volumes in the region have been recovering over the past 18 months, in part due to the better performance of the Brazilian economy.

North American carriers’ freight volumes expanded 3.9% compared to March 2017. The US inventory-to-sales ratio has risen in 2018, indicating the boost to cargo growth from restocking is over.

* required field

Post a comment

Other Stories
Advertisement
Latest News

FIA2018: Wataniya Airways signs a contract for the E195-E2

In a deal that will see the Middle Eastís first E2 operator, Embraer announced at the Farnborough Airshow 2018, that it has signed a firm order for 10 E195-E2 aircraft with Kuwaiti airline, Wataniya Airways.

SaudiGulf Airlines launches new mobile app powered by CellPoint Mobile

CellPoint Mobile has partnered with SaudiGulf Airlines to develop and launch the airlineís first mobile app to support booking. As part of the launch, CellPoint Mobile enables payments through SADAD, the national electronic payment

Emirates celebrates five million passengers in Beirut

Emirates celebrated its five million passenger mark at Beirut Rafic Al Hariri International Airport. The airline has been operating in Lebanon for more than 27 years and in celebration of this milestone, a handful of passengers were

Etihad Airways innovates upgrade programme to a dynamic live auction

Etihad Airways has enhanced its upgrade offering to a dynamic live auction which will make it easier for customers to secure a premium seat in a higher cabin class.

TS&S secures major global partnership deals with airlines

Turbine Services and Solutions (TS&S), a leading maintenance, repair and overhaul (MRO) provider for gas turbines and driven equipment, is expanding its network of international customers.

Emirates announces one-off A380 service to Accra

Emirates A380 aircraft will operate a one-off flight to Kotoka International Airport (ACC), Accra, on Tuesday 2nd October, as the global airline joins local authorities in celebrating the opening of the airportís new Terminal 3.

TAA SK0902311218
See us at
MAPS18_BT1207131118Cargo BT1004091018Aviation Africa BT0607280219BIAS BT271017161118ASDubai BT1004091018GATM BT1004061118Istanbul Airshow BT22018MEBAA BT1004121218AIME19BTA3005120219