Europe, Middle East posts growth in May air cargo volumes, says Iata

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Europe, Middle East posts growth in May air cargo volumes, says Iata

Dubai - Middle Eastern carriers saw demand expand by 3.2 per cent and capacity rise 9.5 per cent in May 2016 compared to the same period last year

By Staff Report

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Published: Wed 6 Jul 2016, 7:48 PM

Last updated: Wed 6 Jul 2016, 10:17 PM

Europe and Middle East recorded growth in air cargo volumes of 4.5 per cent and 3.2 per cent, respectively, in May 2016, compared to the same period last year, said a Press statement from International Air Transport Association, or Iata on Wednesday.
The global freight demand decreased or flat lined in May across most regions. The global air freight data showed that demand measured in Freight Tonne Kilometers, or FTKs slowed in May with growth falling to 0.9 per cent year-on-year. Yields remained pressured as freight capacity measured in Available Freight Tonne Kilometers, or AFTKs increased by 4.9 per cent year-on-year. 
Broad weakness in world trade volumes, which have largely tracked sideways since the end of 2014, accounts for about 80 per cent of air freight's sluggish performance.

"Global trade has basically moved sideways since the end of 2014 taking air cargo with it. Hopes for a stronger 2016 are fading as economic and political uncertainty increases. Air cargo is vital to the global economy. But the business environment is extremely difficult and there are few signs of any immediate relief," said Tony Tyler, Iata's director general and CEO.
 
Regional performance
European airlines witnessed a 4.5 per cent increase in freight volumes and a 5.7 per cent increase in capacity in May 2016. The positive European performance corresponds with an increase in export orders in Germany over the last few months.
Middle Eastern carriers saw demand expand by 3.2 per cent and capacity rise 9.5 per cent in May 2016 compared to the same period last year. Despite carriers in the region reporting the fastest growth in aggregate, demand conditions have weakened considerably. Annual growth in May 2016 was one-fifth of the pace registered in May 2015. This reflects both an easing in network expansion by the region's main carriers over the past six months and weak trading conditions. 
Asia-Pacific airlines reported a 0.7 per cent decrease in demand for air cargo in May compared to last year. Capacity expanded 3.7 per cent. Airlines in Asia-Pacific continue to face headwinds from weak trade in the region and globally.
North American carriers experienced a decline in demand in year-on-year performance of 0.2 per cent. Freight volumes have suffered from the strength of the US dollar which has kept the US export market under pressure.This has contributed to the freight demand of US carriers remaining in negative territory for the past twelve consecutive months. 
Latin American airlines reported a decline in demand of 9.7 per cent and a decrease in capacity of seven per cent, as economic conditions continued to worsen in Latin America, particularly in the region's largest economy, Brazil.
African carriers saw freight growth in May 2016 of 0.3 per cent compared to the same period last year. African airlines' capacity increased by 22.2per cent year-on-year on the back of long-haul expansion continuing the trend seen since December 2015.
Iata represents some 265 airlines comprising 83 per cent of global air traffic.Total freight traffic market shares by region of carriers in terms of FTK are: Asia-Pacific 38.9 per cent, Europe 22.3 per cent, North America 20.5 per cent, Middle East 14.0 per cent, Latin America 2.8 per cent, Africa 1.5 per cent. - business@khaleejtimes.com
 


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