Air Freight up 5.9% in October, signalling strong start to Q4
GENEVA – IATA data shows demand for global air freight measured in freight tonne kilometres (FTKs), rose 5.9% in October compared to a year earlier. This was a slowdown from 9.2% annual growth recorded in September, but still exceeded average annual growth of 3.2% over the past decade.
Freight capacity, measured in available freight tonne kilometres (AFTKs), rose by 3.7% year-on-year in October.
October was the 15th consecutive month in which demand growth outstripped capacity growth, IATA said is positive for load factors, yields, and financial performance. It expects freight volumes to grow in 2018, although at a slower pace than in 2017.
“Tightening supply conditions in the fourth quarter should see the air cargo industry deliver its strongest operational and financial performance since the post-global financial crisis rebound in 2010," said Alexandre de Juniac, IATA’s Director General and CEO.
Asa-Pacific currently holds 37.4% of the world air cargo market, followed by Europe with 23.5% and North America with 20.6%
Airlines in all regions reported an increase in total year-on-year demand in October. However, in contrast, international freight growth slowed in all regions except Africa.
IATA said Asia-Pacific airlines saw freight volumes increase by 4.4% and capacity expand by 3.9% in October, compared to the same period last year. Demand for freight is now around 3% higher than the peak reached in the post-financial crisis rebound in 2010.
“The region’s manufacturers continue to enjoy buoyant order books. And the major exporters in China and Japan are reporting growing backlogs supported in part by stronger economic activity in Europe,” IATA said. www.iata.org (ATI).