Global air freight demand has continued to grow by double digits, the International Air Transport Association (IATA) reported, hitting 12.1 percent in August on the back of increased demand,
“This was the fifth time in six months of double-digit gains on the previous year’s performance. Demand is growing at exceptional speed when compared to the five-year average growth rate of 4.4%,” the IATA said late Wednesday.
It also noted that freight capacity grew by 4.7% year-on-year. Demand growth continued to significantly outstrip capacity growth, it said, benefiting industry load factors, yields, and financial performance.
World trade volumes went up by 4.2% in the first seven months of 2017 compared with the same period of 2016 due to rising export orders and upbeat business confidence.
IATA said the outlook for air freight remained strong given double-digit gains for several months.
“Rapid growth in cargo demand means that cargo capacity is now growing in response to real cargo demand rather than automatically as carriers responded to passenger demand. The pace of capacity growth, however, has slowed even as freighter fleets are being utilized more intensely. Overall, that should be good news for much beleaguered cargo yields,” IATA Director General and Chief Executive Officer Alexandre de Juniac said.
The Asia Pacific, North America, Europe, Middle East and Africa regions all posted double-digit freight volume growth, with the exception being Latin America that only grew by 8.5%.