Subscribe Free
in General Aviation

Middle Eastern airlines’ freight volumes expanded 1.7% in November

Posted 9 January 2019 · Add Comment

The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), was flat (0%) in November 2018, compared to the same period the year before. This was the slowest rate of growth recorded since March 2016, following 31 consecutive months of year-on-year increases.

 

Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 4.3% year-on-year in November 2018. This was the ninth month in a row that capacity growth outstripped demand.

While international e-commerce continues to grow, overall demand faced significant headwinds:

    Signs of weakness in global economic activity;

    A contraction in export order books in all major exporting nations, with the exception of the US;

    Shorter supplier delivery times in Asia and Europe;

    Weakened consumer confidence compared to very high levels at the beginning of 2018.

“Normally the fourth quarter is a peak season for air cargo. So essentially flat growth in November is a big disappointment. While our outlook is for 3.7% demand growth in 2019, downside risks are mounting. Trade tensions are cause for great concern. We need governments to focus on enabling growth through trade, not barricading their borders through punitive tariffs,” said Alexandre de Juniac, IATA’s Director General and CEO. 

Middle Eastern airlines’ freight volumes expanded 1.7% in November 2018 compared to the same period a year earlier. Capacity increased by 7.8% over the same period. Seasonally-adjusted international air cargo demand has now trended upwards for the past six months helped by stronger trade to/from Europe and Asia.  

Regional Performance 

Three of the six regions reported year-on-year demand growth in November 2018 – North America, Middle East and Latin America. Asia Pacific, Europe and Africa all contracted.

Asia-Pacific airlines saw demand for air freight shrink by 2.3% in November 2018, compared to the same period in 2017. This was the first time since May 2016 that monthly year-on-year demand declined. Weaker manufacturing conditions for exporters and shorter supplier delivery times particularly in China impacted the demand. Capacity increased by 3.1%. 

North American airlines posted the fastest growth of any region for the second consecutive month in November 2018 with an increase in demand of 3.1% compared to the same period a year earlier. Capacity increased by 6.3%. The strength of the US economy and consumer spending have helped support the demand for air cargo over the past year, benefiting US carriers. 

European airlines experienced a contraction in freight demand of -0.2% in November 2018 compared to the same period a year earlier. Capacity increased by 3.1% year-on-year. Weaker manufacturing conditions for exporters, and shorter supplier delivery times particularly in Germany, one of Europe’s key export markets, impacted demand.

Latin American airlines’ freight demand rose 3.1% in November 2018 compared to the same period in 2017. Capacity increased by 2.0%. International year-to-date demand recovered into positive territory, increasing 6.3%. The key markets, however, to and from the region are showing signs of weakness, particularly between South America and Europe, which contracted in year-on-year terms in October (last data available).

African carriers saw freight demand decrease by 7.8% in November 2018, compared to the same month in 2017. This was the eighth time in nine months that demand contracted. Capacity shrank 7.4% year-on-year. Demand conditions on all key markets to and from Africa remain weak. Seasonally-adjusted international freight volumes are 7% lower than their peak in mid-2017, nonetheless, they are still 28% higher than their most recent trough in late-2015. 

 

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Etihad Airways relaunches Etihad Guest

Etihad Airways has relaunched its loyalty programme, Etihad Guest. The redesigned and upgraded reward scheme now offers its members significantly enhanced benefits.

Oman Aviation Academy selects Diamond DA40 NG and DA42-VI fleet

Oman Aviation Academy (a CAE Authorised Training Centre) has signed a contract with Diamond Aircraft for the purchase of eight aircraft – including six single-engine DA40 NG and two twin-engine DA42-VI – with an option to add 16 more.

Rolls-Royce Trent 700 certified to power new Airbus BelugaXL Transporter

The Rolls-Royce Trent 700 engine has received certification to power the new Airbus BelugaXL air transporter.

Etihad Engineering unveils 3D printing lab

Etihad Engineering has collaborated with EOS and BigRep, both leading 3D printing technology providers, to open the region’s first additive manufacturing facility with Design and Production Approval from the European Aviation

Emirates wins at APEX 2020 Regional Passenger Choice Awards

Emirates' clinched awards for Best Wi-Fi and Best Food & Beverage in the Middle East at the APEX 2020 Regional Passenger Choice Awards held in Singapore this week.

Qatar Airways and CFM International sign LEAP-1A engine and service agreements

Qatar Airways has selected CFM International LEAP-1A engines to power its new fleet of 50 A321neo family aircraft, the largest order of A321neo family aircraft in the Middle East.

Aviation Part SK0611311219
See us at
Dubai AS BT2006211119DIAC19_BT0509161119AVAFA20BT2607050320AVMENA20 BT1309100620