September Air Freight Demand Slows Slightly but Still Up 9.2%
The International air transport Association (IATA) released data for international air freight markets in September 2017 showing that demand (measured in freight metric ton kilometers or FTKs), rose 9.2% compared to an equivalent month in 2016. This was the slowest pace of growth seen in 5 months. However, it absolutely was still considerably above the five-year average rate of growth of 4.4%
Freight capacity (measured in accessible freight metric ton kilometers or AFTKs), rose by 3.9% compared to September of last year - less than half the pace of demand growth. this can be positive for industry load factors, yields, and money performance.
It seems that the industry has passed a cyclical growth peak. The upward trend in seasonally-adjusted freight volumes in Q3 has relieved and therefore the inventory-to-sales ratio within the USA is currently trending sideways. this means that the amount once firms look to stock inventories quickly-which usually offers air cargo a boost-has ended.
"Demand for air cargo grew by 9.2% in September. whereas that" slower than in previous months, it remains stronger than something we've seen in recent memory. however there are signs that this demand spurt might have peaked. therefore it becomes even a lot of vital to reinforce the industry" aggressiveness by fast the modernization of its several antiquated processes," said Alexandre de Juniac, IATA" Director General and CEO.
With year-to-date demand growth of 10.1%, the IATA forecast of 7.5% growth in air freight demand for 2017 seems to own important upper side potential though the height of the economic cycle has passed
Airlines in all regions reported a rise in year-on-year demand in September.
Asia-Pacific airlines saw freight volumes increase by 9.3% in September 2017, compared to identical amount last year.
North american carriers announce a rise in freight volumes of 7.4% for the month; the region also posted the second quickest international rate of growth among regions (11.0%). capacity multiplied 1.4%.
European airlines posted a 10.3% increase in freight demand in September 2017, and a capacity increase of 5.6%. issues that the recent strengthening of the euro might have affected the region's exporters haven't materialized.
Middle Eastern carriers' year-on-year freight volumes multiplied 8.9% in September 2017 and capacity multiplied 2.6%.
Latin American airlines tough a growth in demand of 7.6% in September 2017 and capacity multiplied by 5.9% compared to the same amount in 2016.
African carriers announce the biggest year-on-year increase in demand of all regions in September 2017, with freight volumes rising 17.7%.