Air cargo looks to be on solid ground to continue its strong performance into the second half of 2024, while Asia and Middle East-Asia trade lanes increased by around 20 per cent, 21 per cent and 15 per cent, respectively, says Willie Walsh, Director General, IATA.
CT Bureau
IATA in its data for June 2024 showed global air cargo markets registering continuing strong annual growth in demand. This contributed to an exceptional first half-year performance for air cargo, with volumes exceeding 2023 and 2022, and even the record-breaking 2021 levels.
“The global air cargo demand surged in June. Strong growth across all regions and major trade lanes combined for a record-breaking first-half performance in terms of CTKs. Maritime shipping constraints and a booming e-commerce sector are among the strongest growth drivers. The sector has remained impervious to ongoing political and economic challenges, and the USA customs crackdown on e-commerce deliveries from China. The industry looks to be on solid ground to continue its strong performance into the second half of 2024,” said Willie Walsh, Director General, IATA.
In the month of June, the PMI Purchasing Managers Index (PMI) for international manufacturing output indicated expansion (52.3), while the new export orders PMI registered a small contraction, falling just below the critical 50-point benchmark to 49.3. Global cross-border trade expanded 0.1 per cent month-on-month in May, while the industrial production stayed level compared to the previous month.
- Total cargo demand, measured in CTKs, increased by 14.1 per cent compared to June 2023 levels (15.6% for international operations). This is the seventh consecutive month of double-digit year-on-year growth.
- Capacity, measured in ACTKs, increased by 8.8 per cent as compared to June 2023 (10.8% for international operations).
- Total half-year (H1) demand increased by 13.4 per cent compared to H1 2023, by 4.3 per cent compared to H1 2022, and by 0.02 per cent compared to H1 2021.
- Inflation was a mixed picture in June. In the European Union and Japan, inflation rates stayed constant compared to the previous month at 2.6 per cent and 2.8 per cent, respectively, while dropping in the US to 3 per cent. In contrast, CHina’s inflation rate remained near zero (0.3%) reflecting weak domestic demand amid high unemployment, slow income growth, and a crisis in the real estate sector, a trend that has persisted since 2023.
Regional performance
Asia-Pacific airlines saw 17.0 per cent year-on-year demand growth for air cargo in June—the strongest among all regions. Demand on the Africa-Asia trade lane grew by 37.5 per cent YoY. Asia and Middle East-Asia trade lanes rose by 20.3 per cent, 21.0 per cent and 15.1 per cent, respectively. Capacity increased by 10.7 per cent year-on-year.
North American carriers saw 9.5 per cent YoY demand growth in June, the weakest among all regions. Demand on the North America-Europe route saw an increase of 6.7 per cent, while the Asia-North America trade lane, the world’s largest, grew by 12.8 per cent
Middle Eastern carriers saw 13.8 per Cent YoY demand growth for air cargo in June. As mentioned above, the Middle East–Europe market performed particularly well with 30.2 per cent annual growth, ahead of Middle East–Asia which grew by 15.1 per cent YoY. June capacity increased 6.9 per cent YoY, the largest annual increase in five months.
June capacity increased by 6.0 per cent year-on-year. European carriers saw 16.1 per cent YoY demand growth for air cargo in June. Intra-European air cargo rose by 16.7 per cent compared to June 2023, the sixth month in a row of double-digit annual growth. Europe–Middle East and Europe–Asia routes saw demand increase by 30.2 per cent and 20.3 per cent, respectively. June capacity increased 9.1% year-on-year.
Latin American carriers saw 13.1 per cent year-on-year demand growth for air cargo in June. Capacity rose by 15.5 per cent YoY. Latin America posted the second-highest increase in global demand growth at 17.2 per cent in June, up 6.3 percentage points.
African airlines saw 11.8 per cent YoY demand growth for air cargo in June. Demand on the Africa-Asia market increased by 37.5 per cent against June 2023, the strongest performance of all trade lanes. June capacity increased by 23.8% year-on-year.
