Sunday, 7th August 2022
<To guardian.ng
Search
Breaking News:

African carriers, others record air cargo growth in June, says IATA

By Chika Goodluck-Ogazi
05 August 2016   |   4:39 am
African carriers have recorded 0.4 per cent freight growth in June 2016 compared to the same period last year, as the airlines’ capacity in the continent surged by 19.9 per cent year-on-year on the back of long-haul expansion, which continued the trend seen since December 2015.
Tony Tyler

Tony Tyler

African carriers have recorded 0.4 per cent freight growth in June 2016 compared to the same period last year, as the airlines’ capacity in the continent surged by 19.9 per cent year-on-year on the back of long-haul expansion, which continued the trend seen since December 2015.

In its released data for global airfreight demand in June 2016, the International Air Transport Association (IATA) recorded a rise in freight tonne kilometers of 4.3 per cent year-on-year.

This, according to IATA, was the fastest pace of growth in 14 months. Freight capacity measured in available freight tonne kilometers (AFTKs) increased by 4.9 per cent year-on-year, keeping yields under downward pressure, it noted.

The body stated that freight demand increased year-on-year in June across all regions with the exception of Latin America, which recorded a 9.8 per cent decrease, compared to the same period last year, adding that Middle East and Europe posted the fastest demand growth in June with year-on-year increases of 8.0 per cent and 5.1 per cent respectively.

Speaking, the Director General, IATA, Tony Tyler said that: “June saw an improvement in demand for air freight. That’s good news. However, we cannot read too much into one month’s performance. Air cargo markets have been in the doldrums for several years during which there were several false starts on indications for improvement.

“We will continue watching developments closely, keeping in mind that the air freight business environment is fragile. Global economic growth remains sluggish, world trade volumes continue to trend downwards and the industry faces heightened uncertainty in the aftermath of the Brexit vote”.

Highlighting the performance of each region, it said that Asia-Pacific airlines reported a 3.5 per cent increase in demand for air cargo in June compared to last year, while capacity expanded by 3.6 per cent.

According to IATA, the Asia-Pacific airfreight market has been improving in recent months, most notably the large ‘within Asia’ market. Nonetheless freight volumes from ‘emerging Asia’ continued to face headwinds from weak trade in the region and globally, it stated.

It noted that North American carriers saw freight volumes expand by 4.3 per cent in June 2016 compared to the same period last year. While the capacity increased 4.0 per cent, international freight volumes continued to suffer from the strength of the United States (US) dollar, which has kept the US, export market under pressure.

IATA added that European airlines witnessed a 5.1 per cent increase in freight volumes and a 4.9 per cent increase in capacity in June 2016.
It noted that the positive European performance corresponds with signs of an increase in export orders in Germany over the last few months, as seasonally adjusted freight results for Europe are now trending upwards.

Middle Eastern carriers posted the largest increase in freight volumes of all regions for the 16th consecutive month in June with 8.0 per cent year on year and capacity increased by 8.7 per cent.
Although the leader in market growth, the Middle East’s international freight growth rate for the first six months of 2016 is less than half the 14.3 per cent average growth for the same period in 2015.
Latin American airlines reported a decline in demand of 9.8 per cent and a decrease in capacity of 2.6 per cent. The region continues to be blighted by weak economic and political conditions, particularly in the region’s largest economy, Brazil, stated IATA.

In this article