Global air cargo demand rises 1.5% YoY in August 2023

Capacity, measured in available cargo tonne-kilometres (ACTKs), was up 12.2 per cent compared to August 2022—11.8 per cent for international operations. This was largely related to belly capacity which rose 30 per cent YoY as airlines ramped-up operations to meet peak-northern summer travel season demand, the International Air Transport Association (IATA) said in a press release.

In August, both the manufacturing output purchasing managers index (PMI) at 49.4 and new export orders PMI at 47.0 saw a slight improvement to the previous month. They remained, however, below the critical threshold represented by the 50 mark, indicating a continuing, if slower, annual decline in global manufacturing production and exports.

Global cross-border trade contracted for the fourth month in a row in July, decreasing 3.2 per cent YoY. This reflects the cooling demand environment and general macroeconomic conditions.

Inflation saw a mixed picture in August, with an increase in US consumer prices for the second month in a row. Meanwhile in Europe and Japan, consumer and producer prices fell. In China, which is fighting deflationary pressures, consumer prices rose.

“Air cargo demand grew by 1.5 per cent over the previous August. This is the first YoY growth in 19 months, so it is certainly welcome news. But it is off a low 2022 base and market signals are mixed. Looking ahead, while many uncertainties remain, we can take some optimism from PMI data moving towards positive territory. This is particularly significant as we head into air cargo’s traditional peak year-end season,” said Willie Walsh, IATA’s director general.

In August 2023, the air cargo industry experienced varied performances across different regions.

Asia-Pacific airlines were a highlight, with a 4.9 per cent increase in cargo volumes compared to August 2022. This was bolstered by growth in major trade lanes like Europe-Asia and Middle East-Asia, which rose to 8.8 per cent and 3.5 per cent respectively. The region also saw an impressive 28.5 per cent increase in available capacity.

North American carriers saw a slight decline of 1.2 per cent in volumes, but this was an improvement over July’s 5.4 per cent drop, and capacity increased by 2.7 per cent.

European carriers had a marginal decline of 0.2 per cent in air cargo volumes but showed improvement from July’s figures with a 3.6 per cent increase in capacity.

Middle Eastern airlines enjoyed a 1.4 per cent rise in cargo volumes and a significant 15.7 per cent capacity boost.

Latin American carriers led the pack with a 6.2 per cent surge in cargo volumes and a 13.7 per cent rise in capacity.

Conversely, African airlines lagged, recording a 4.7 per cent decline in cargo volumes, although capacity was up by 3.8 per cent.

Fibre2Fashion News Desk (NB)