Demand for air freight services still booming
But Iata predicts slowdown in recovery as second half progresses
Air freight volumes continued to show dynamic demand in July, according to the latest figures from the International Air Transport Association (IATA).
IATA said scheduled freight traffic showed a 22.7% year-on-year improvement last month.
The rate of growth was lower than the 26.6% recorded in June, but this is mainly attributed to the relative buoyancy of the sector in July 2009, when volumes had already started to recover.
IATA said: “After adjusting for seasonality, the improvement in demand was faster month-to-month in July than it was in June.”
The association also said that cargo demand last month was marginally higher than in the pre-crisis days of early 2008.
However, Giovanni Bisignani, IATA Director General and CEO, said the slow economic recovery in Europe and the US was continuing to impact consumer confidence.
“This is affecting leisure markets and cargo traffic,” he added.
“Following the boost of cargo demand from inventory re-stocking, further growth will be largely determined by consumer spending which remains weak.”
And IATA is predicting a slowdown in air freight market recovery as the second half of the year progresses.
It said: “It is clear that the recovery has entered a slower phase.
“Extraordinary freight growth rates in late 2009 and early 2010 were supported by businesses re-stocking their inventories.
“With the re-stocking cycle completed, air freight demand will be driven by consumer spending and business capital expenditure.
“Weak consumer confidence in Europe and North America will be a negative factor, but strengthening corporate profits are supporting an increase in capital expenditure that could continue to drive robust freight growth.”
IATA said scheduled freight traffic showed a 22.7% year-on-year improvement last month.
The rate of growth was lower than the 26.6% recorded in June, but this is mainly attributed to the relative buoyancy of the sector in July 2009, when volumes had already started to recover.
IATA said: “After adjusting for seasonality, the improvement in demand was faster month-to-month in July than it was in June.”
The association also said that cargo demand last month was marginally higher than in the pre-crisis days of early 2008.
However, Giovanni Bisignani, IATA Director General and CEO, said the slow economic recovery in Europe and the US was continuing to impact consumer confidence.
“This is affecting leisure markets and cargo traffic,” he added.
“Following the boost of cargo demand from inventory re-stocking, further growth will be largely determined by consumer spending which remains weak.”
And IATA is predicting a slowdown in air freight market recovery as the second half of the year progresses.
It said: “It is clear that the recovery has entered a slower phase.
“Extraordinary freight growth rates in late 2009 and early 2010 were supported by businesses re-stocking their inventories.
“With the re-stocking cycle completed, air freight demand will be driven by consumer spending and business capital expenditure.
“Weak consumer confidence in Europe and North America will be a negative factor, but strengthening corporate profits are supporting an increase in capital expenditure that could continue to drive robust freight growth.”
Click here to email the editor and comment on this story
Receive our FREE news email bulletin click here
- 13 − 15 March 2012
- 22 − 23rd March 2012
- 25th April 2012 for 12 weeks.
- 12 − 14 June 2012
