Global air cargo demand increased by five per cent in July 2016, compared to a year earlier – the fastest pace of growth in almost 18 months, according to the International Air Transport Association.
But freight capacity measured in available freight tonne kilometres increased by 5.2 per cent year-on-year, outstripping demand and keeping yields under pressure.
The strongest demand growth was in Europe where freight tonne kilometres were up 7.2 per cent – and capacity rose by only 3.8 per cent, boosting yields. Asia-Pacific and North America also saw demand rising faster than capacity.
But Latin America and Africa both saw demand falling and capacity increasing.
Alexandre de Juniac, IATA’s new director general and CEO, said: “July was a positive month for air freight—which is an all too rare occurrence. Despite that, we must recognise that we face some strong headwinds on fundamental aspects of the business. Global trade growth is sluggish and business confidence is weak. And the political rhetoric on both sides of the Atlantic is not encouraging for further trade liberalization.”