Double-digit growth for global air freight demand in July
GENEVA – International Air Transport Association (IATA) data for global air freight markets showing that demand, measured in freight tonne kilometres (FTKs), increased by 11.4% in July 2017 compared to the same period a year ago. It was the fourth time in five months that double-digit annual growth has been recorded.
July’s year-on-year increase in demand is nearly four times higher than the 10-year average growth rate of 3.1%.
Freight capacity, measured in available freight tonne kilometres (AFTKs) grew by 3.7% on-year in July 2017.
IATA says demand growth continues to significantly outstrip capacity growth, which is positive for airline yields and the industry’s financial performance.
The robust growth in air cargo demand is consistent with an uptick in global trade, rising export orders and upbeat business confidence indicators, IATA said.
There are, however, signs that demand growth for air freight may be nearing a peak. Seasonally-adjusted air freight volumes were flat in June and fell in July; and the global inventory-to-sales ratio has stabilised.
IATA says air cargo often sees a boost in demand at the beginning of an economic upturn as companies look to restock inventories quickly. This tapers as inventories are adjusted to new demand levels. www.iata.org (ATI).