Global air cargo demand witnesses a robust 18.4 percent year-on-year increase in January, marking the second consecutive month of double-digit percentage growth, reveals data from the International Air Transport Association (IATA).
Global air cargo demand experienced a substantial 18.4 percent year-on-year surge in January, marking a noteworthy second consecutive month of double-digit percentage growth, according to data released by the International Air Transport Association (IATA). The remarkable increase was highlighted as the highest registered since the recovery phase in summer 2021 post the Covid pandemic.
The surge in demand was driven by several factors, with the booming e-commerce sector playing a pivotal role. The January increase was also influenced by last year’s Lunar New Year holiday, occurring in mid-January, resulting in factory closures during the latter half of the month. Reports also suggested a modal shift due to the Red Sea shipping crisis.
IATA’s data revealed that cargo tonne kilometres (CTK) for the month were 2.8 percent higher than pre-Covid 2019 levels, showcasing a strong rebound. Additionally, available capacity increased by 14.6 percent, with belly space continuing to be added to the market. The cargo load factor demonstrated improvement, rising by 1.4 percentage points to 45.7 percent.
IATA Director General Willie Walsh commented on the robust start to the year, with the e-commerce sector playing a crucial role in keeping air cargo demand above the growth levels in both trade and production since the last quarter of 2023. However, he also noted the uncertainty surrounding China’s economic slowdown as a potential counterweight to the positive trend.
IATA emphasised that air cargo demand growth outpaced global cross-border trade and production. While global cross-border trade increased by 1 percent in December compared to the previous month, it was down 0.2 percent year on year. The manufacturing output Purchasing Managers’ Index (PMI) improved, indicating expansion, and the new export orders PMI increased but remained below the critical 50 thresholds.
Regional performance varied, with Asia Pacific airlines witnessing a substantial 24.6 percent year-on-year increase in air cargo volumes in January. North American carriers registered a 9.3 percent increase, European carriers saw a 16.4 percent increase, Middle Eastern carriers had the strongest performance with a 25.9 percent year-on-year increase, Latin American carriers experienced a 13.4 percent increase, and African airlines saw a 17 percent increase. Overall, the industry’s performance demonstrated a robust start to 2024, raising optimism for sustained growth and recovery.
