Subscribe Free
in General Aviation

Middle Eastern carriers saw air freight demand increase by 6.7% in July

Posted 6 September 2016 · Add Comment

The International Air Transport Association (IATA) released data for global air freight markets in July 2016 showing robust growth in demand.

Measured in freight tonne kilometers (FTKs), demand increased 5.0% in July 2016, compared to July 2015. This was the fastest pace in almost 18 months. Freight capacity measured in available freight tonne kilometers (AFTKs) increased by 5.2% year-on-year, outstripping demand and keeping yields under pressure. 

Despite the subdued global trade backdrop, carriers in the world's four biggest air cargo markets – Asia-Pacific, Europe, North America and the Middle East - reported an increase in freight demand. The strongest growth occurred in Europe and the Middle East, with July demand up by 7.2% and 6.7% respectively, compared to the same period last year.

Middle Eastern carriers saw air freight demand increase by 6.7% in July 2016 year-on-year. Capacity increased by 11%. The region’s growth rate, while still strong, has eased to half the 14% recorded annually between 2012 and 2015. This is mainly attributable to slower freight growth between the Middle East and Asia.

“July was a positive month for air freight—which is an all too rare occurrence. Despite that, we must recognize that we face some strong headwinds on fundamental aspects of the business. Global trade growth is sluggish and business confidence is weak. And the political rhetoric on both sides of the Atlantic is not encouraging for further trade liberalisation,” said Alexandre de Juniac, IATA’s Director General and CEO.

Regional Performance

 

Asia-Pacific airlines reported a 4.9% increase in demand for air cargo in July compared to last year. In particular, growth has been driven by strong increases in the large ‘within Asia’ market in recent months, but the latest business surveys from the region paint a mixed picture. Capacity in the region expanded 2.7%.


North American carriers saw freight volumes expand 4.1% in July 2016 compared to the same period last year, and capacity increase by 3.4%. International freight volumes (which grew 1.3% in July) continue to suffer from the strength of the US dollar which has kept the US export market under pressure.

 

European airlines posted the largest increase in freight demand of all regions in July, 7.2% year-on-year. Capacity increased 3.8%. The positive European performance corresponds with an increase in export orders in Germany over the last few months. Europe’s freight volumes have now surpassed the level reached during the air freight rebound following the Global Financial Crisis. The only other region to achieve this is the Middle East. 

 

African carriers recorded a 6.8% decrease in year-on-year freight demand in July 2016 – the largest decline in seven years. African airlines’ capacity surged by 31.3% on the back of long-haul expansion (from a small base).

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Dubai Airshow will see its largest number of exhibitors

"When the Dubai Airshow opens its doors in under a month at DWC, Dubai Airshow site, visitors can expect to see a larger number of exhibitors and exciting new features in addition to the appearance of industry heavyweights and niche

UAE Space Agency welcomes Kuwaiti delegation

The UAE Space Agency has welcomed an official delegation from the Kuwaiti scientific, research and academic institutions visiting the UAE this week to learn about the experience, achievements and future plans of the UAE space sector.

Bahrain International Defence Exhibition and Conference takes place

The first edition of Bahrain International Defence Exhibition and Conference covering air, land and sea is taking place on October 16-18 at Bahrain International Exhibition & Convention Centre.

Gama takes full control of Middle East business

Gama Aviation has bought out its partners in the Gama MENA business based in Sharjah.

Dubai Airports wins at Aviation Business Awards

Dubai Airports, Dubai International (DXB), and Dubai World Central (DWC), were honoured with two awards at the 11th Aviation Business Awards on Wednesday.

Danger of the deadly dust

The harsh climate and environment of the Middle East and North Africa imposes unique challenges for military aviators and particularly for the operators of rotary wing and vertical lift aircraft. Jon Lake reports.

Kuwait Aviation SK1909310118
See us at
DASAS BT3006161117Aviation Show 267291117Aviation Africa BT18418DIAC BT1105121117Global Aerospace BT28218AIME BT1204240118AIMA Africa 2017DAS BT1105161117