The International Air Transport Association (IATA) has released data for global air freight markets in September 2017 showing that demand (measured in freight tonne kilometers or FTKs), rose 9.2% compared to the same month in 2016.
This was the slowest pace of growth seen in five months. However, it was still significantly higher than the five-year average growth rate of 4.4%.
*African carriers however posted the largest year-on-year increase in demand of all regions within the period, with freight volumes rising 17.7%.
While IATA described this as a slowdown from August, it declared that the performance was still more than twice the five-year average growth pace of 8.9%.
While capacity increased by 2.6% over the same time period, demand has been boosted by very strong growth on the trade lane to and from Asia which increased by more than 67% in the first eight months of the year.
However the upward trend in seasonally-adjusted volumes has flattened in recent months just as freight capacity (measured in available freight tonne kilometers or AFTKs), rose by 3.9% compared to September of last year less than half the pace of demand growth. This is positive for industry load factors, yields, and financial performance.
According to the IATA Director General, Alexandre de Juniac: “Demand for air cargo grew by 9.2% in September. While that’s slower than in previous months, it remains stronger than anything we have seen in recent memory. But there are signs that this demand spurt may have peaked. So it becomes even more important to reinforce the industry’s competitiveness.”