in General Aviation

African air cargo carriers post fastest growth of any region

Posted 5 March 2020 · Add Comment

The International Air Transport Association (IATA) has eleased data for global air freight markets showing that demand, measured in cargo tonne kilometers decreased by 3.3% in January 2020, compared to the same period in 2019. However, African cargo see an increase in demand of 6.8%

 

”January marked the tenth consecutive month of year-on-year declines in cargo volumes. The air cargo industry started the year on a weak footing. There was optimism that an easing of US-China trade tensions would give the sector a boost in 2020. But that has been overtaken by the COVID-19 outbreak, which has severely disrupted global supply chains, although it did not have a major impact on January’s cargo performance. Tough times are ahead. The course of future events is unclear, but this is a sector that has proven its resilience time and again,” said Alexandre de Juniac, IATA’s Director General and CEO.

 

Cargo capacity, measured in available cargo tonne kilometers (ACTKs), rose by 0.9% year-on-year in January 2020. Capacity growth has now outstripped demand growth for 21 consecutive months.

 

It is unlikely that the COVID-19 outbreak had very much to do with January’s weak performance. Lunar New Year in 2020 was earlier than in 2019. This skewed 2020 numbers towards weakness as many Chinese manufacturers would be closed for the holiday period. February performance will give a better picture of how COVID-19 is impacting global air cargo.

 

African carriers posted the fastest growth of any region for the 11th consecutive month in January 2020, with an increase in demand of 6.8% compared to the same period a year earlier. Growth on the smaller Africa-Asia trade lanes (up 12.4% in 2019) contributed to the positive performance. Capacity grew 5.9% year-on-year.

 

 

Other regional performance

 

Asia-Pacific airlines saw demand for air cargo contract by 5.9% in January 2020, compared to the year-earlier period. This was the sharpest drop in freight demand of any region for the month. Capacity growth was flat. Seasonally-adjusted cargo demand rose slightly however, following the thawing of US-China trade relations. The impact from COVID-19 is expected to affect February’s performance.

 

North American airlines saw demand decrease by 1.3% in January 2020, compared to the same period a year earlier. Capacity increased by 3.4%. Seasonally-adjusted cargo demand rose slightly however, amid a more supportive operating environment and following the thawing of US-China trade relations.

 

European airlines posted a 3.7% decrease in cargo demand in January 2020 compared to the same period a year earlier – more than double the 1.3%% drop in year-on-year demand in December. Seasonally-adjusted demand also dropped sharply, disrupting the positive trend that started mid-2019. Capacity decreased by 3.0% year-on-year.

 

Middle Eastern airlines’ cargo volumes decreased 1.4% in January 2020 compared to the year-ago period. Capacity increased by 2.9%. Against a backdrop of operational and geopolitical challenges facing some of the region’s key airlines, seasonally-adjusted freight volumes ticked down in January, but a modest upwards trend has been sustained. However, given the Middle East’s position connecting trade between China and the rest of the world, the region’s carriers have significant exposure to the impact of COVID-19 in the period ahead.

 

Latin American airlines experienced an increase in freight demand in January 2020 of 1.4% compared to January 2019 – reversing the 2.5% decrease in December. Seasonally-adjusted freight volumes in the region also ticked upwards, underpinned by new route connections, which is a positive development for the region’s carriers. Capacity increased by 2.4% year-on-year.

Other Stories
Advertisement
Latest News

Cam and buy me...!

Cameroon’s president has ordered that national airline, Camair-Co, should be prepared for privatisation. Alan Dron looks at how attractive the debt-laden carrier might be to external investors?

Qatar Airways to launch three weekly flights to Abuja

Qatar Airways will operate three weekly flights to Abuja, Nigeria via Lagos from 27 November 2020 becoming the sixth new destination announced by the national carrier of the State of Qatar since the start of the pandemic.

Still no economic visibility for Air Mauritius

The Mauritian national carrier is still facing an abyssal financial problem. Administrators say that there’s a lack of economic visibility due to the new wave of restrictions on international travel imposed by a good part of Europe and

Fighting fit - air arms continue to power up

A number of African air forces are making significant improvements to their fighter and other capabilities.

JetHQ opens Egypt sales base

Aircraft transaction and brokerage company JetHQ has expanded its capabilities to meet the needs of its clients in Egypt by appointing Sherif Abouzeid to head its newly created office in the country as vice president of sales, Egypt.

WTM Africa will go ahead as virtual event in April 2021

The World Travel Market (WTM) Africa has received the approval to go ahead in April 2021 as a live hybrid event.

Aviation Africa 2021 SK
See us at
Aviation Africa 2021Aviation MENA 2021CONNECT BT0610090421