Global air freight demands races to the bottom

Global demand for air cargo fell by by 17.6% YoY in June, capacity dips by 34.1%: IATA

Post By : News Desk
Post Date : July 28, 2020
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Global demand for air cargo, measured in cargo tonne-kilometres (CTKs), fell by 17.6% in June (-19.9% for international operations) compared to the previous year. That is a modest improvement from the 20.1% year-on-year drop recorded in May, IATA indicated.

Global capacity, on the other hand, measured in available cargo tonne-kilometers (ACTKs), shrank by 34.1% in June (‑33.9% for international operations) compared to the previous year. This was on par with the 34.8% year-on-year drop in May.

Belly capacity for international air cargo shrank by 70% in June compared to the previous year due to the withdrawal of passenger services amid COVID-19. This was partially offset by a 32% increase in capacity through expanded use of freighter aircraft.

“Cargo is, by far, healthier than the passenger markets but doing business remains exceptionally challenging. While economic activity is re-starting after major lockdown disruptions there has not been a major boost in demand. The rush to get personal protective equipment (PPE) to market has subsided as supply chains regularized, enabling shippers to use cheaper sea and rail options. And the capacity crunch continues because passenger operations are recovering very slowly.”

~ Alexandre de Juniac, IATA’s Director General and CEO

Regional performance declined in June

All regions recorded declines in June. Airlines in Europe and Latin America suffered the sharpest drops in year-on-year growth in total air freight volumes, while airlines in Asia-Pacific and the Middle East experienced slightly less dramatic declines. Airlines in North America and Africa saw more moderate drops compared to the other regions.

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