Momentum Continues for Air Freight
The climb is headlined by a 14.1% increase in total demand, according to the IATA.
June 2024 data gathered by the International Air Transport Association (IATA) is now available, revealing that annual growth in demand is continuing to climb.1 And overall, when analyzing the first half of the year, volume has surpassed last year, 2022, and 2021 levels.
Total demand, which is measured in cargo tonne-kilometers (CTKs), increased by 14.1% compared to June 2023 levels2 (15.6% for international operations). These numbers represent the seventh straight month of double-digit year-on-year growth. Capacity, measured in available cargo tonne-kilometers, rose by 8.8% compared to June 2023 (10.8% for international operations). When examining half years, total half-year (H1) demand increased by 13.4% when compared to H1 2023, by 4.3% compared to H1 2022, and by 0.02% compared to H1 2021.
There were also other factors that impacted these statistics, including:
- In June, the purchasing managers index (PMI) for global manufacturing output and new export orders PBI suggested expansion and contraction, at 52.3 and 49.3 respectively.
- Inflation for the month of June was a “mixed picture,” as described by the IATA. For instance, in the European Union and Japan, inflation rates were fairly constant when compared to the past month, at 2.6% and 2.8% respectively; in the United States, it fell to 3.0%. Meanwhile, the rate in China stayed near zero (0.3%), just as it did in May.3
"Air cargo demand surged in June,” pointed out Willie Walsh, IATA’s director general. “Strong growth across all regions and major trade lanes combined for a record-breaking first-half performance in terms of CTKs. Maritime shipping constraints and a booming e-commerce sector are among the strongest growth drivers.
“Meanwhile, the sector has remained largely impervious to ongoing political and economic challenges, and the US customs crackdown on e-commerce deliveries from China. Air cargo looks to be on solid ground to continue its strong performance into the second half of 2024."
According to the chart above, there was a 17.0% year-on-year demand growth for air cargo in June for Asia-Pacific airlines. There was also high demand in the Africa-Asia trade lane, which grew by 37.5% year-on-year, while the Within Asia, Europe-Asia, Within Asia and Middle East-Asia trade lanes rose by 21.0%, 20.3%, and 15.1% respectively. There was even a capacity increase of 10.7% year-on-year.
Examining the passenger side,3 total passenger demand rose 9.1% compared to June 2023, and overall, total capacity increased by 8.5%.
“Demand grew across all regions as the peak Northern summer travel season began in June,” added Walsh. “And with overall capacity growth lagging demand we saw a very strong average load factor of 85% achieved in both domestic and international operations.
“Operating with such high load factors is both good and challenging. It makes it even more important for all the stakeholders to operate with equal levels of efficiency to minimize delays and get travelers to their destinations on schedule. As the Olympic Games unfold in Paris, there is pride across the aviation industry for its continuing role in supporting the Olympic story by bringing many of the athletes, fans, and officials together.”
References
1. June Air Cargo Demand Surges 14.1%, Boosting Strong First Half Performance. IATA. July 30, 2024. Accessed July 31, 2024. https://www.iata.org/en/pressroom/2024-releases/2024-07-30-01/
2. Saraceno N. Reduction in Air Cargo Demand Slows Down for June. Pharmaceutical Commerce. August 7, 2023. Accessed July 31, 2024. https://www.pharmaceuticalcommerce.com/view/reduction-in-air-cargo-demand-slows-down-for-june
3. Saraceno N. Passenger Demand Up 10.7% in May. Pharmaceutical Commerce. July 8, 2024. Accessed July 31, 2024. https://www.pharmaceuticalcommerce.com/view/air-freight-demand-continues-for-may
