Subscribe Free
in General Aviation

Middle Eastern carriers see freight demand expand by 7.7%

Posted 31 May 2016 · Add Comment

The International Air Transport Association (IATA) released demand growth results for global air freight markets for April 2016 showing a 3.2% increase in demand measured in freight tonne kilometers (FTKs) compared to the same period last year.

Yields remained pressured as April freight capacity (measured in available freight tonne kilometers or AFTKs) increased by 6.6% year-on-year.  ​​The increase in demand was broad-based across all regions with the exception of Latin America. The strongest growth occurred in the Middle East and Europe, with April demand up by 7.7% and 6.8%, respectively, compared to the same period last year. 

Middle Eastern carriers saw demand expand b​y 7.7% and capacity rise 11.0% in April 2016 compared to the same period last year. Although carriers in the region continued to report the fastest growth in aggregate, the April growth rate was about half that recorded in April 2015. This reflects both a slowdown in network expansion by the region’s main carriers over the past six months and weak trading conditions. 

While growth appears to be stronger than in the preceding months of 2016, this is largely due to the disappearance from the comparison data of distorting factors associated with the 2015 strike at seaports on the US West Coast.

Overall, the demand for air cargo remains soft and lags behind the relatively robust growth on the passenger side of the business. This is largely driven by weak world trade. The first quarter of 2016 saw the first annual decline in trade volumes since the global financial crisis in 2009, and the World Trade Organization (WTO) predicts only sluggish growth for the remainder of 2016.

“While the April uptick in demand growth for air cargo is encouraging, the overall economic environment is not. The decline in global trade does not bode well for air cargo markets in the months ahead,” said Tony Tyler, IATA’s Director General and CEO.

Asia-Pacific airlines’ demand for air cargo was basically flat with a 0.1% rise in April compared to last year. Capacity expanded 2.8%. The largest factor impacting this stagnation is weak trade—globally and in the region.

North American carriers experienced a significant upward swing in year-on-year performance as the exaggerated effects of last year’s US seaport disruption wore off. Demand grew by 4% in April 2016 compared to the same period last year, significantly better that the 0.8% drop the previous month.

 

European airlines witnessed a 6.8% increase in freight volumes in April 2016, the highest growth since November 2013. The strong European performance corresponds with an increase in export orders in Germany over the last few months. Despite European cargo demand trending upwards, performance remains weak in historical terms. Seasonally adjusted demand in April 2016 was only 1.5% higher than mid-2011. 

 

Latin American airlines reported a decline in demand of 5.9% and a drop in capacity of 0.7%, as economic conditions continued to worsen, particularly in the region’s largest economy, Brazil.

 

African carriers saw flat-line freight growth in April 2016 compared to the same period last year. Notably, on the back of long-haul expansion, the capacity for African airlines surged by 24.3% year-on-year. This is more than double the pace of any other region in recent months.

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Etihad conference is in good health

Etihad hosted the fifth edition of its acclaimed annual Aviation Health Conference, in the UAE capital yesterday. The conference was accredited for the first time by the International Academy of Aviation and Space Medicine.

Aviation safety academy to be built in Dubai South

The ambitions of Dubai to create a true aviation hub in its new Aviation City development at Dubai South have been given another boost with the announcement that Dynamic Advanced Training, a specialist provider for aircrew training has

Jazeera Airways begins Indian growth with Hyderabad inaugural

Kuwaiti low-cost carrier Jazeera Airways, has inaugurated its daily flights to Rajiv Gandhi International Airport in Hyderabad, India.

EgyptAir and LOT begin codeshare between Cairo and Warsaw

EgyptAir and LOT Polish Airlines have signed a codeshare agreement for passengers flying between Warsaw and Cairo. Due to this cooperation, both airlines customers will take advantage of convenient connections on LO and MS codes via

GDC Middle East awarded contract by Sierra Nevada Corporation

GDC Middle East has been awarded a sub-contract by U.S. contractor, Sierra Nevada Corporation (SNC) to upgrade King Air 350 aircraft to Special Mission (ISR) aircraft.

Dubai Airshow: Turkish Technic and SAEI consolidate maintenance partnership

Turkish Technic. and SAEI (Saudia Aerospace Engineering Industries) signed an MoU during the Dubai Airshow.

Sky Prime SK3010301117
See us at
Aviation Africa BT18418Istanbul Airshow BT 2018Aviation Show 267291117AAS2017_BT0711061217Global Aerospace BT28218AIME BT1204240118BIAS BT271017161118