The International Air Transport Association (IATA) has reported that the global air cargo market maintained its robust momentum in August 2024, with demand continuing to outpace capacity.
This marks the ninth consecutive month of double-digit year-over-year growth, highlighting the sector’s resilience and strong rebound performance.
We take a look at the key performance figures for the month, together with a regional breakdown.
August Air Cargo Performance
According to the IATA August report, total demand, measured in cargo tonne-kilometers (CTKs), surged by 11.4% compared to the same period last year.
This growth was driven by a combination of factors, including a steady increase in global trade, the booming e-commerce sector, and ongoing capacity constraints in maritime shipping.
Capacity, measured in available cargo tonne-kilometers (ACTKs), also expanded but at a slower pace, rising by 6.2% year-over-year. This increase was primarily attributable to the growth in belly capacity, which was boosted by the strong performance of the passenger market.
Despite the record levels of capacity, the air cargo industry has witnessed a significant improvement in yields, which surged by 11.7% compared to 2023 and 46% compared to pre-pandemic levels.
This indicates that the sector is effectively managing supply and demand, ensuring that carriers are able to command premium rates for their services.
Current Market Challenges
While the overall trend remains positive, there are some underlying factors that could potentially impact the market’s future trajectory. Industrial production remained stagnant in August, and global cross-border trade experienced a slight decline.
Moreover, the Purchasing Managers Index (PMI) for both global manufacturing output and new export orders fell below the 50-mark, suggesting contraction in these sectors.
Inflation rates also exhibited a mixed picture in August. While the US and EU saw a decline in inflation, Japan and China experienced increases.
These inflationary pressures could influence consumer spending and, consequently, demand for air cargo.
Regional Performance Breakdown
Regionally, Asia-Pacific airlines continued to dominate the market, with demand growth of 14.6% year-over-year.
North America, on the other hand, recorded the lowest growth rate at 4.8%. Europe, the Middle East, Latin America, and Africa also saw strong demand increases.
Key Regional Highlights
Asia-Pacific: The region continued to lead the market with strong demand growth, driven by robust trade flows within the region and with other parts of the world.
North America: While the overall growth was slower compared to other regions, demand remained healthy, supported by the region’s strong economy and growing e-commerce market.
Europe: European carriers experienced solid demand growth, benefiting from increased trade activity and the region’s strategic location.
Middle East: The Middle East continued to demonstrate strong performance, particularly on routes to Europe, leveraging its strategic geographic position and modern infrastructure.
Latin America: The region witnessed healthy demand growth, driven by economic recovery and increased trade with other parts of the world.
Africa: African airlines recorded moderate demand growth, supported by the region’s growing economy and increasing trade connections.
Conclusion
Overall, the global air cargo market remains in a strong position, with continued growth driven by a combination of factors. The market continues to demonstrate resilience and adaptability in the face of global economic fluctuations.
However, it will be worthy to monitor economic indicators and geopolitical developments to assess potential risks and challenges that could impact the sector’s continued performance.
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