Capacity, measured in Air Cargo Tonne Kilometres increased by 7.3% compared to March 2023. With cross-border trade and industrial production continuing to show an upward trend, this year is shaping up to be a solid one for air cargo, says Willie Walsh, Director General, IATA.
CT Bureau
In the latest data released by IATA for March 2024, “International air cargo demand increased by 10.3 per cent over the previous March. This contributed to a strong first quarter performance, which slightly exceeded the exceptionally strong 2021 first quarter performance during the pandemic. With cross-border trade and industrial production continuing to show an upward trend, this year is shaping up to be a solid one for air cargo,” said Willie Walsh, Director General, IATA.
- Total demand, measured in cargo tonne-kilometers (CTKs), rose by 10.3 per cent compared to March 2023 levels (11.4% for international operations). This is the fourth consecutive month of double-digit year-on-year growth.
- Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 7.3 per cent compared to March 2023 (10.5% for international operations).
Operating environment
- Global cross-border trade and industrial production increased by 1.2 per cent and 1.6 per cent respectively, in February.
- In March, the manufacturing output Purchasing Managers’ Index (PMI) climbed to
51.9, indicating expansion. The new export orders PMI also increased to 49.5, remaining slightly below the 50
threshold that would indicate growth expectations. - Inflation saw a mixed picture in March. In the European Union (EU) and Japan, inflation rates decreased to 2.6 per cent and 2.7 per cent respectively, while increasing in the USA to 3.5 per cent. China experienced a deflation of minus 0.01 per cent. A return to deflation is forecast after February’s brief period of inflation.
March regional performance
Middle Eastern carriers saw 19.9 per cent year-on-year demand growth for air cargo in March. The Middle East–Europe market was the strongest performing region with 38.3 per cent growth, ahead of Middle East-Asia, which grew by 19.6 per cent year-on-year. March capacity increased as much as 10.6 per cent year-on-year.
Asia-Pacific Airlines saw 14.3 per cent year-on-year demand growth for air cargo in March. Cargo demand on the Asia-Europe route increased by 2.7 ppt to 17.0 per cent and within the Asia market, the same grew by 6.7 ppt to 11.8 per cent. Cargo capacity increased by 14.3 per cent year-on-year.
As per IATA, North American carriers witnessed a 0.9 per cent year-on-year demand growth for air cargo in March—the weakest among all regions. European carriers saw 10.0 per cent year-on-year demand growth for air cargo in March. Intra-European air cargo rose by 24.7 per cent year-on-year. Europe–Middle East routes saw demand grow by 38.3 per cent year-on-year, while Europe–North America expanded by 2.9 per cent year-on-year. Cargo capacity in March increased 8.0 per cent year-on-year. Latin American carriers saw 9.2 per cent year-on-year demand growth for air cargo in March. The cargo capacity increased 7.0 per cent year-on-year.
African airlines saw 14.2 per cent year-on-year demand growth for air cargo in March. Demand in the Africa–Asia market increased to 22.9 per cent. However, this was a 19.8 ppt decrease compared to the performance in February and the largest contraction across the major route areas. March capacity increased by 17.3 per cent year-on-year.
Monitoring air freight traffic and capacity allows deriving CLF, a key indicator that illustrates the balance between demand and supply within the industry. Rising load factors are beneficial for airlines because they drive revenue and profitability at a given capacity. In March, the industry recorded a CLF of 47.3%. This ratio is 2.2 ppt higher than in the previous month and stands for a 1.3 ppt increase compared to March 2023.
