Subscribe Free
in Air Transport

Middle Eastern airlines’ freight volumes expanded 5.0% in October 2018

Posted 6 December 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 3.1% in October 2018, compared to the same period the year before.

This pace of growth was up from a 29-month low of 2.5% in September.

Freight capacity, measured in available freight tonne kilometers (AFTKs), rose by 5.4% year-on-year in October 2018. This was 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 the growth. However, 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;

·        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. 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,” said Alexandre de Juniac, IATA's director general and CEO.

Middle Eastern airlines’ freight volumes expanded 5.0% in October 2018 compared to the same period a year earlier. Capacity increased by 8.8% over the same period. There are signs of a pick-up in seasonally-adjusted international air cargo demand helped by more trade to/from Europe and Asia.

Latin American airlines’ freight demand rose 0.3% in October 2018 compared to the same period last year and capacity increased by 3.3%. International demand slipped by 0.9%, marking the first contraction in 11months. International freight volumes have fallen month-on-month in four of the past five months, reflecting broad weakness in the region’s key markets. 

Other Regional Performance 

All regions reported year-on-year demand growth in October 2018, except Africa which contracted. 

Asia-Pacific airlines saw demand for air freight grow 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. Capacity increased by 4.2%. 

North American airlines posted the fastest growth of any region in October 2018, with an increase in demand of 6.6% compared to the same period a year earlier. Capacity increased by 8.2% over the same period. 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 1.4% increase in freight demand in October 2018 compared to the same period a year earlier. Capacity increased by 1.9% year-on-year. Weaker manufacturing conditions for exporters, and longer supplier delivery times particularly in Germany, Europe’s largest freight flying country, impacted demand. Seasonally-adjusted international air cargo demand remained deflated in October, which could indicate the start of a broader weakening in demand. 

African carriers saw freight demand decrease by 4.2% in October 2018, compared to the same month last year. This was the seventh time in eight months that demand shrank. Capacity increased by 5.4% year-on-year. Demand conditions on all key markets to and from Africa remain weak. Nonetheless, seasonally-adjusted international freight volumes have stopped declining and recovered sharply in recent months.

* required field

Post a comment

Other Stories
Advertisement
Latest News

EFTA signs with Commsoft for OASES MRO IT System

Aviation engineering and maintenance company, Commsoft has signed a contract with the Emirates Flight Training Academy (EFTA) for its MRO IT system, OASES.

Will runway closure awake Dubai’s slumbering giant

In May 2019, Dubai International Airport is closing one of its two runways for 45 days. Alan Dron wonders if this will encourage airline customers to try out the under-used Dubai World Central?

AIM Altitude delivers logo feature for Oman Air

AIM Altitude has produced a striking and unique feature panel to be showcased in the First-Class cabins of Oman Air’s Boeing 787-9 aircraft, recently launched on its Muscat to London route.

Rolls-Royce signs TotalCare contract for MEA aircraft

As part of its widebody fleet renewal, the Lebanese carrier Middle East Airlines – Air Liban (MEA) has decided to purchase four new and two option Airbus A330-900neo powered by Rolls-Royce Trent 7000 engines due to deliver in 2021.

Private - at a price

Private aircraft ownership comes with its own set of considerations, all focused on maintaining airworthiness through planned and unplanned events. Chuck Grieve spoke to leading Middle East maintenance, repair and overhaul (MRO)

Middle East and North Africa business aviation association attracts new board members

Ali Alnaqbi, founding & executive chairman of the Middle East and North Africa Business Aviation Association (MEBAA) has welcomed a host of senior industry figures to the organisation he founded in 2006.

Boeing SK0311018051218
See us at
AIME19BTA3005120219SaudiAirshowBT0711140319Aviation Africa BT0607280219