in General Aviation

African carriers' saw freight demand increase by 10.6% in February

Posted 6 April 2017 · Add Comment

The International Air Transport Association (IATA) has released demand growth results for global air freight markets for February 2017 showing an 8.4% increase in demand measured in freight tonne kilometers (FTKs) compared to the same period last year.

After adjusting for the impact of the leap year in 2016, demand increased by 12% -- almost four times better than the five-year average rate of 3.0%. 

Freight capacity, measured in available freight tonne kilometers (AFTKs), shrank by 0.4% in February 2017.

The continued growth of air freight demand in 2017 is consistent with an uptick in world trade which corresponds with new global export orders remaining at elevated levels in March. Of particular note is the expanded volume of semi-conductor materials typically used in high-value consumer electronics.

African carriers’ saw freight demand increase by 10.6% (or more than 14% adjusting for the leap year) in February 2017 compared to the same month last year and capacity increase by 1.0%. Year-to-date demand has increased by 16.2%, helped by very strong growth on the trade lanes to and from Asia. The increase in demand has helped the region’s seasonally-adjusted load factor rise by 2.8 percentage points so far in 2017. 

“February further added to the cautious optimism building in air cargo markets. Demand grew by 12% in February—about four times the five-year average rate. With demand growing faster than capacity, yields got a boost. While there are signs of stronger world trade, concerns over the current protectionist rhetoric are still very real,” said Alexandre de Juniac, IATA’s Director General and CEO.

The rapid growth of niche markets such as cross-border e-commerce and time and temperature sensitive pharmaceutical are showing robust growth as noted at the World Air Cargo Symposium held in Abu Dhabi last month. “Any optimistic look at the future sees growing demand for specialized value added services. Shippers are telling us that the key to turning the current uptick in the cargo industry’s fortunes into longer-term growth is modernizing our antiquated processes. We must use the current momentum to push ahead with the elements of the e-cargo vision—including the e-air waybill which is nearing 50% market penetration,” said de Juniac. 

Regional Performance 

All regions, with the exception of Latin America, reported an increase in demand in February 2017. 

Asia-Pacific airlines posted the largest year-on-year demand increase among regions in February 2017 with freight volumes growing 11.8% (more than 15% adjusting for the leap year). Capacity increased by 2.0% over the same time. The increase in demand is captured in the positive outlook from business surveys in the region and is reflected in the increase in trade across Asia-Pacific’s main freight lanes to, from, and within the region, which have strengthened considerably over the past six months. Seasonally-adjusted volumes dipped slightly in February but remained up considerably since early 2016 and are now back to the levels reached in 2010 during the post-global financial crisis bounce-back. 

North American airlines’ freight volumes expanded 5.8% (or more than 9% adjusting for the leap year) in February 2017 compared to the same period a year earlier, and capacity decreased by 3.1%. This was driven in part by the strength of freight traffic to and from Asia which increased by 5.7% year-on-year in January. The further strengthening of the US dollar continues to boost the inbound freight market but is keeping the export market under pressure. 

European airlines posted a 10.5% (or around 14% adjusting for the leap year) increase in freight volumes in February 2017 and a capacity increase of 1.4%. The ongoing weakness of the Euro continues to boost the performance of the European freight market which has benefitted from strong export orders, particularly in Germany, over the last few months. 

Middle Eastern carriers’ year-on-year freight volumes increased 3.4% (or approximately 7% adjusting for the leap year) in February 2017 and capacity decreased 1.7%. Seasonally adjusted freight volumes continue to trend upwards and demand remains strong between the Middle East and Europe. Despite this, growth has eased from the double-digit rates which were the norm over the past ten years. This corresponds with a slowdown in network expansion by the region’s major carriers. 

Latin American airlines experienced a contraction in demand of 4.9% (or around 1% adjusting for the leap year) in February 2017 compared to the same period in 2016 and a decrease in capacity of 7.2%. Recovery in seasonally-adjusted volumes also stalled with demand 14% lower than at the peak in 2014. And freight volumes have now been in contractionary territory in 25 out of the last 27 months. The region’s carriers have managed to adjust capacity, which has limited the negative impact on the load factor. Latin America continues to be blighted by weak economic and political conditions.

 

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

African countries to attend Dubai's 2019 Airport Show

The 19th edition of the world’s largest annual airport exhibition in Dubai later this month will see a record participation of 211 Hosted Buyers, many coming from Africa.

Ethiopian to launch flight services to Marseille

Ethiopian Airlines has finalised all preparations to launch a thrice weekly flight to Marseille, France as of July 02, 2019.

O.R Tambo International Airport named African Airport of the Year

O.R Tambo International Airport, South Africa’s biggest and busiest port of entry, was named African Airport of the Year at the Air Cargo Africa conference and exhibition. This was the fourth time the airport has won the award.

FAI Technik receives FAA approval for EASA MRO licence

FAI Technik, the maintenance division of Germany’s FAI Aviation Group, has now received FAA approval for its EASA Part 145 licence. This follows similar approvals from the Nigerian authorities in October 2018.

Cabo Verde Airlines to enter into partnership with TAAG-Angola Airlines

Cabo Verde Airlines has entered a strategic partnership with TAAG Angola Airlines, the national airline of Angola, in a codeshare agreement of flights operated by TAAG between Luanda and Sal.

EgyptAir moves six flight operations at Cairo International Airport

EgyptAir is to move six of its flight operations from terminal two (TB2) instead of Terminal three (TB3) at Cairo International Airport (CAI), while the arrival flights from the same points will be landing at TB3 as usual.

Connect MEIA SK1402010519
See us at
Connect MEIA BT1402010519