August 4, 2016
According to data from the International Air Transport Association (IATA) global air cargo volumes were up 4.3% in June, the fastest pace of monthly growth in 14 months.
The association says cargo holds were not fully utilized as freight capacity (measured in available freight tonne kilometers) increased by 4.9% year-on-year, keeping yields under downward pressure.
Freight demand increased across all regions in June with the exception of Latin America which recorded a 9.8% decrease, compared to the same period last year. The Middle East and Europe posted the fastest demand growth in June with year-on-year increases of 8.0% and 5.1% respectively.
North American carriers saw freight volumes expand 4.3% in June 2016 compared to the same period last year. Capacity increased 4.0%. International freight volumes continue to suffer from the strength of the US dollar which has kept the US export market under pressure.
"June saw an improvement in demand for air freight. That's good news. However, we cannot read too much into one month's performance. Air cargo markets have been in the doldrums for several years during which there were several false starts on indications for improvement. We will continue watching developments closely, keeping in mind that the air freight business environment is fragile. Global economic growth remains sluggish, world trade volumes continue to trend downwards and the industry faces heightened uncertainty in the aftermath of the Brexit vote," said Tony Tyler, IATA's Director General and CEO.