Blog
Jul 14

IATA Reports 6% Decline in Demand for International Air Cargo Operations

Travel Industry News at TravelNewsAsia.com since 1997
Thursday, 6 July 2023
Media Services Videos / Interviews Podcasts Pictures Travel Industry News
IATA Reports 6% Decline in Demand for International Air Cargo Operations

Dark/Light Mode (06/07/23) IATA's global air cargo data for May 2023 shows weak market conditions with global demand, measured in cargo tonne-kilometers (CTKs), falling 5.2% compared to May 2022 (-6% for international operations).

Capacity, as measured by available cargo tonne-kilometers (ACTKs), rose 14.5% compared to May 2022, primarily driven by belly capacity which increases as demand in the passenger business recovers. Capacity is now 5.9% above pre-pandemic May 2019 levels.

Key factors influencing demand include:

– The global manufacturing Purchasing Managers Index (PMI) indicates an annual contraction of 1.4% in new export orders and a decrease of 5.2% year-on-year in production PMI. This suggests a cooling in global manufacturing demand;

– Global goods trade decreased by 0.8% in April, due to macroeconomic challenges and supply chain constraints. Trading conditions appeared to favor maritime cargo as demand for container shipping contracted by 0.2% while air cargo demand weakened by 6.3% year-on-year; and

Turkish Cargo Airbus A330-200F. Picture by Steven Howard of TravelNewsAsia.com Click to enlarge. Turkish Cargo Airbus A330-200F. Picture by Steven Howard of TravelNewsAsia.com

– The global supplier delivery time PMI increased to 54.5 in May, up from its low of 35 in October 2021, indicating shorter delivery times and some relief for supply chains. However, this is also a sign of weaker global goods trade demand.

“Trading conditions for air cargo continue to be challenging with a 5.2% fall in demand and several economic indicators pointing towards weakness,” said Willie Walsh, IATA’s Director General. “The second half of the year, however, should bring some improvements. As inflation moderates in many markets, it is widely expected that central bank rate hikes will taper. This should help stimulate economic activity with a positive impact on demand for air cargo.”

Asia-Pacific airlines saw their air cargo volumes decrease by 3.3% in May 2023 compared to the same month in 2022, a decrease in performance compared to April of -0.3%, mainly due to the stronger annual contraction in international air cargo demand from -3.5% in April to -6.4% in May. Available capacity in the region increased by 38.3% compared to May 2022 as more belly capacity came online from the passenger side of the business.

North American carriers saw the weakest performance of all regions for the third consecutive month with an 8.1% decrease in cargo volumes in May 2023 compared to the same month in 2022. This was a slight improvement in performance compared to April (-12.4%). Notably, airlines in the region saw the third month of double-digit contractions in volumes on the North America-Europe trade lane (-10.3%). Capacity increased 1.2% compared to May 2022.

European carriers experienced a 6.7% decrease in cargo volumes in May 2023, compared to the same month in 2022. This was an improvement in performance compared to April (-7.7%), in part due to the smaller annual contraction in international CTKs on the Europe-Middle East trade lane, from -4.7% in April to -2.9% in May. The decline in international cargo traffic on markets within-Europe also improved from -16.2% in April to -7.8% this month (seasonally adjusted). Meanwhile, capacity increased 5.6% in May 2023 compared to May 2022.

Middle Eastern carriers experienced a 3.1% year-on-year decrease in cargo volumes in May 2023. This was a slight improvement in performance compared to the previous month (-6.7%). Capacity increased 15.6% compared to May 2022.

Latin American carriers had the only positive performance in May 2023 posting a 3.6% increase in cargo volumes compared to May 2022. This was an improvement in performance compared to April (-1.6%). Capacity in May was up 14.7% compared to the same month in 2022.

African airlines posted a 2.4% decrease in demand compared to May 2022. This was a decline in performance compared to the previous month (-0.9%). Notably, the growth on the Africa to Asia trade route slowed significantly in May from 18.5% in April to 11%, possibly due to the impact of the conflict in Sudan since mid-April. Capacity in May was up 9.2% compared to the same month in 2022.

Latest videos: Somerset Pattaya – Exclusive Video Interview with Natthadol Patthamadilok, Senior General Manager, Will MYAirline Become Your Airline? Exclusive 4K DCI Video Interview with Rayner Teo, CEO, Solomon Islands – Interview with Dagnal Dereveke, Acting CEO, Tourism Solomons, Exclusive Video Interviews with 17 Contestants of Miss International Queen 2023, Tourism Seychelles – Exclusive Interview with Sherin Francis, Principal Secretary, India's Aviation Market – Exclusive 4K Video Interview with Roshan Mendis, EVP and CCO of Sabre Travel Solutions and Living With One Eye – Six Years On by Steven Howard.



Headlines: Qantas' SVP for Asia Returns to Singapore with Expanded Remit as Airline Increases Flights IHG Signs Hotel Indigo in Thonglor District of Bangkok, Thailand Radisson Signs Resort on Naisoso Island, Fiji Minor Hotels to Expand NH Collection Brand to Maldives SITA to Upgrade Technology and Services at 43 of India's Biggest Airports Langham Signs Second Ying'nFlo Hotel in Hong Kong Conrad Hotel Opens in Shenzhen, China Hahn Air Adds 12 Airlines to Network Hong Kong Airlines Launches Flights to Nagoya, Japan Country in Asia Pacific Orders Two Long-Range Patrol Aircraft IHG Partners A.P.K Real Estate for a Holiday Inn Express & Suites Hotel in Bangkok, Thailand Accor Opens Third Hotel in Rayong, Thailand Icelandair Orders 13 A321XLR and Leases 4 A321LR Aircraft Mandarin Oriental Signs Third Luxury Hotel in London, England In-Flight Wireless Charging Takes Off with United Airlines Air Canada's Third Airport Lounge in USA Features an Outdoor Terrace Sabre Working with HRS to Better Manage Disrupted Air Travel TFE Hotels Opens Adina Serviced Apartments in Vienna, Austria Major Redevelopment of JFK Airport's Terminal 8 to Promote New York Choice Opens First Ascend Hotel Collection Property in Asia Somerset Pattaya – Exclusive Video Interview with Natthadol Patthamadilok, SGM Solomon Islands – Interview with Dagnal Dereveke, Acting CEO, Tourism Solomons Dusit Thani Maldives Opens Seaplane Lounge SITA Chosen as Airport Management System Provider for Noida Airport Minor Hotels Appoints Ian Di Tullio as Chief Commercial Officer Norse Atlantic to Launch Flights to Miami from Paris and Berlin Robert Lowe Appointed GM of Mandarin Oriental Ritz Madrid Holiday Inn Hotel Opens in Riyadh, Saudi Arabia Airbus Inaugurates New A320 Family FAL in Toulouse, France IATA Partners Aviation Impact Accelerator Will MYAirline Become Your Airline? Exclusive 4K DCI Video Interview with Rayner Teo, CEO IATA Reports 6% Decline in Demand for International Air Cargo Operations Air Astana Opens Ticket Sales on Flights Between Almaty and Jeddah, Saudi Arabia Sabre Acquires Hospitality E-Commerce Provider, Techsembly IHG Signs First voco Hotel in Lebanon Qatar Airways Reports Impressive FY2022/23 Numbers Viva Aerobus Signs MOU with Airbus for 90 A321neo Aircraft Kuwait Airways Appoints APG as Online GSA in Morocco IATA Revises HKIA's Passenger Traffic Projections Rolls-Royce Acquires Team Italia / Onyx Marine Marriott Opens Seventh Ritz-Carlton Hotel in Japan Cebu Pacific Takes Delivery of 8th New Aircraft This Year Saudia Launches Thrice Weekly Direct Flights to Third Destination in England Jetstar to Increase Flights Between Australia and Seoul, South Korea Pradyot Rana Appointed GM of Shinta Mani Mustang Bensley Collection Resort in Nepal Airbus H160 Receives FAA Certification Trip Group Establishes Global Childcare Subsidy Four Seasons Promotes Two in Hawaii; Names Alastair McAlpine as GM of Four Seasons Osaka Survey Reveals Gen Z and Millennials Want More Regional Travel Experiences BA and London Heathrow Partner Connecting with Nature in Hillingdon Project IHG Signs Holiday Inn Resort in Kasauli, India Vietnam Airlines Signs MOU with Visa to Advance Digital Transformation China Airlines to Launch Taipei – Kumamoto Flights in September Spain to Host IATA World Sustainability Symposium in October Patrick Duff Returns to Maldives as Vakkaru's Resort Manager Son Bunyola Hotel Opens in Tramuntana Mountains of Mallorca Holiday Inn Express Hotel Opens Near Hartsfield-Jackson Atlanta Airport Thai Airways Adds Four Single-Class A320s to Fleet Korean Air Delivers First of Eight AH-6 Fuselages to BDS Airbus to Recruit 13,000+ People in 2023 Hong Kong Airlines to Expand Fleet with Three Airbus A330s Minor Opens First Avani Hotels in Italy and Spain ICAO Air Navigation Commission Concludes 3-Day Visit to Singapore More Travellers Ready to Fly Despite Concerns Over Delays, Cost and Airport Congestion Korean Air and GS Caltex to Test SAF on Select International Routes Rooftop at The Dorchester Hotel in London Reopens Cathay Pacific Aiming to Recruit 800+ Cadet Pilots in 2023-2024 Mandarin Oriental Guangzhou Opens MiniMO-Inspired Rooms for Children Akasa Air Orders Four Boeing 737-8 Aircraft US Air Force's First T-7A Red Hawk Completes Inaugural Flight; Enters EMD Phase Asia Pacific Airlines Carried 21.4 Million International Passengers in May 2023 Sabre Integrates Carbon Emissions Data from Google into POS Tools Hong Kong Airport Reports May 2023 Traffic Qantas Makes Changes to Group Management Committee Marriott to Expand Presence in Affordable Midscale Segment in Canada and USA IHG Expands Hotel Indigo Brand to Panama City, Florida Crefisa to Charter E190-E2 to Top Football Teams in South America BA Euroflyer to Launch Flights Between London Gatwick and Fuerteventura Munich Airport Renews Contract of CEO Jost Lammers Emirates Becomes Official Airline of Etoile Sportive du Sahel Pan Pacific Signs Serviced Suites in Bangkok, Thailand Narai Hospitality Signs Franchise Agreement for Le Meridien Phuket Mai Khao Beach Resort Martin Schnider Appointed GM of Mandarin Oriental Kuala Lumpur JAL to Use Insight Accelerator on Boeing 787 Fleet Sabre Begins Asia Pacific Roadshow AAPA Confirms Appointment of Captain Roshan Joshi as Technical Head SpiceJet Signs Interline Agreement with Hahn Air Alexis Vidal Joins ATR as Senior Vice President Commercial Iraqi Airways Celebrates Delivery of First Boeing 787 Dreamliner Marriott Opens First Tribute Portfolio Hotel in Montreal, Canada Pictures from Miss International Queen 2023 Transgender Beauty Pageant in Pattaya, Thailand Exclusive Video Interviews with 17 Miss International Queen 2023 Contestants Martin Wuethrich Returns to Hua Hin as GM of the Marriott Resort & Spa Qantas Orders Nine Additional Airbus A220-300 Aircraft Alton Aviation Publishes Commercial Aircraft and Engine Fleet Forecast 2023-2033 DHC-6 Twin Otter Classic 300-G Unveiled on First Day of Paris Air Show 2023 Sabre Upgrades Airport Experience with iCoupon Partnership Pimalai Resort on Koh Lanta Appoints Olivier Pauchard as F&B Manager Embraer Names First Three Suppliers for eVTOL Aircraft Qatar Airways Launches Seasonal Flights to Trabzon, Türkiye Minor Expands Tivoli Brand to Portopiccolo Sistiana, Italy Mandarin Oriental Encourages Guests to Explore New York by Bicycle China Airlines Unveils Plan to Lease Two Additional Airbus A350-900 Aircraft Rolls-Royce to Begin Testing Small Gas Turbine Designed to Power Hybrid-Electric Flight Brazilian Air Force Takes Delivery of First KC-390 in FOC Configuration Air Astana Opens Ticket Sales on Flights Between Almaty and Tel Aviv, Israel AirAsia X to Resume Flights Between Kuala Lumpur and Amritsar, India Mandarin Oriental Partners Tailwind Air for Seaplane Experience Between NYC and Boston Airline Associations Call for Global Alignment of Airport Slot Regulations Embraer Inaugurates First KC-390 Full Flight Simulator IHG Opens Two Hotels in British Columbia, Canada Hotels in London Report Highest RevPAR Since October 2022 Travel and Tourism Industry Deal Activity Down 41% Traveloka Becomes an Affiliate Member of UNWTO Elbit Systems to Showcase Nano Spear and New Drone Detection Solution at PAS2023 Miss International Queen 2023 Interview with Alisa Phanthusak, MD of Tiffany's Show Pattaya Tourism Seychelles – Exclusive Interview with Sherin Francis, Principal Secretary Living With One Eye – Six Years On by Steven Howard India's Aviation Market – Interview with Roshan Mendis, EVP / CCO of Sabre Travel Solutions HD Videos and Interviews Podcasts from HD Video Interviews RSS Feed – Travel Industry News Ticker – Travel Industry News Travel Industry News Archives Travel Trade Shows High-Res Picture Galleries Travel News Asia – Latest Travel Industry News

Subscribe to our Travel Industry News RSS Feed Travel Industry News RSS Feed from TravelNewsAsia.com. To do that in Outlook, right-click the RSS Feeds folder, select Add a New RSS Feed, enter the URL of our RSS Feed which is: https://www.travelnewsasia.com/travelnews.xml and click Add. The feed can also be used to add the headlines to your website or channel via a customisable applet. Have questions? Please read our Travel News FAQ. Thank you.

About The Author

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.