July volumes rise with global trade support, IATA says

Another month, another double-digit increase in airfreight volume growth. A surge in global trade and business confidence indicators pushed up July demand in freight tonne kilometers by 11.4 percent, year-over-year – proving wrong the International Air Transport Association’s (IATA’s) warning that June was likely the peak of the latest growth period.

Instead of peaking at 11 percent growth in June, July numbers outperformed the month that IATA reported as the strongest freight demand increase since 2010, and vastly outpaced the ten-year average growth of 3.1 percent. Freight capacity in available FTKs also increased, y-o-y, by 3.7 percent, in movement that remains positive for yields. Meanwhile, the July load factor increased by three percentage points to 43.7 percent.

Airlines in Africa posted the fastest growth rate in international FTKs with a 34.1 percent increase, y-o-y, for July, which were in line with June’s y-o-y growth numbers, with a surge in traffic between Asia and Africa. North American airlines also saw a dramatic increase in FTKs, with an 18.7 percent increase, y-o-y, during July as a strong U.S. dollar supported imports into the U.S.

Volume growth for European and Asian airlines was also solid, at 12.3 percent and 12 percent, respectively, y-o-y. Middle Eastern and Latin American airlines experienced the slowest growth, as the Middle East faces greater competition for market share and Latin America faces ongoing economic and political volatility, especially in Brazil. Volumes in FTKs for Middle Eastern carriers rose by 9.3 percent, y-o-y, in July, while volumes for Latin American carriers increased by 6.3 percent, y-o-y, for the month.

As per usual, IATA concluded its July analysis with a cautionary note, as director general and CEO Alexandre de Juniac noted that while the rest of the year should be positive for the airfreight industry, “there are signs that the cyclical growth period may be nearing a peak,” and growth rates should slow as the end of the year approaches – which is similar to what he said last month.

To learn more about future innovations in freight forwarding, air freight and logistics, join us at Air Cargo World’s ELEVATE Conference in Miami, Oct. 2. Click here for registration information.