Air, Business, Freight News

IATA Sees Continued Growth in Demand

[ December 6, 2024   //   Gary G Burrows ]

The International Air Transport Association, or IATA, said global air cargo markets showing continued annual growth in demand in October.
Total demand, measured in cargo tonne-kilometers, or CTKs*, rose 9.8 percent compared to October 2023 levels (10.3 percent for international operations) for a 15th consecutive month of growth, said IATA, which represents some 330 airlines comprising more than 80 percent of global air traffic.
Capacity, measured in available cargo tonne-kilometers, or ACTKs, increased by 5.9 percent compared to October 2023 (7.2 percent for international operations). This was largely driven by an 8.5 percent increase in international belly capacity. Dedicated freighter capacity increased by 5.6 percent, the seventh consecutive month of growth with volumes nearing 2021 peak levels, IATA said.
“Global air cargo yields (including surcharges) continue to rise, up 10.6 percent on 2023 and 49 percent on 2019 levels,” said Willie Walsh, IATA’s director general. “While 2024 is shaping up to be a banner year for air cargo, we must look to 2025 with some caution. The incoming Trump administration’s announced intention to impose significant tariffs on its top trading partners – Canada, China and Mexico – has the potential to upend global supply chains and undermine consumer confidence. The air cargo industry’s proven adaptability to rapidly evolving geopolitical and economic situations is likely to be tested as the Trump agenda unfolds.”
Year-on-year, industrial production rose 1.6 percent in September while global goods trade increased 2.4 percent for a sixth consecutive month of growth. The increase in trade is partly due to businesses stockpiling inventory ahead of potential disruptions, like the U.S. port strike.
Global manufacturing activity rebounded in October. The Purchasing Managers Index (PMI) for global manufacturing output was above the 50-mark, indicating growth. However, the PMI for new export orders, remained below the 50-mark, suggesting ongoing uncertainty and weakness in global trade.
Regionally, North American carriers saw 9.5 percent year-on-year demand growth for air cargo in October. Capacity increased by 5.8 percent year-on-year. Asia-Pacific airlines saw 13.4 percent demand growth for air cargo in October. Capacity increased by 9.3 percent. European carriers saw 7.6 percent demand growth for air cargo in October. Capacity increased 3.9 percent.
U.S. headline inflation, based on the annual Consumer Price Index (CPI), rose 0.17 percentage points to 2.58 percent in October, ending a six-month decline. In the same month, the inflation rate in the EU increased by 0.24 percentage points to 2.33 percent. China’s consumer inflation fell to 0.29 percent in October, sparking concerns of an economic slowdown.

Tags: IATA