The International Air Transport Association released data for August 2023 global air cargo markets, showing that year-on-year air cargo demand grew for the first time in 19 months.
Global demand, measured in cargo tonne-kilometers (CTKs), increased by 1.5 per cent compared to August 2022 levels (2 per cent for international operations).
Capacity, measured in available cargo tonne-kilometers (ACTKs), was up 12.2 per cent compared to August 2022 (11.8 per cent for international operations).
This was largely related to belly capacity which rose 30 per cent year-on-year as airlines ramped-up operations to meet peak-northern summer travel season demand.
Several factors in the operating environment should be noted:
- In August, both the manufacturing output Purchasing Managers Index or PMI (49.4) and new export orders PMI (47.0) saw a slight improvement to the previous month. They remained, however, below the critical threshold represented by the 50 mark, indicating a continuing, if slower, annual decline in global manufacturing production and exports.
- Global cross-border trade contracted for the fourth month in a row in July, decreasing 3.2 per cent year-over-year. This reflects the cooling demand environment and general macroeconomic conditions.
- Inflation saw a mixed picture in August, with an increase in US consumer prices for the second month in a row. Meanwhile in Europe and Japan, consumer and producer prices fell. In China, which is fighting deflationary pressures, consumer prices rose.
“Air cargo demand grew by 1.5 per cent over the previous August,” says IATA director general Willie Walsh.
“This is the first year-on-year growth in 19 months, so it is certainly welcome news. But it is off a low 2022 base and market signals are mixed. Looking ahead, while many uncertainties remain, we can take some optimism from PMI data moving towards positive territory. This is particularly significant as we head into air cargo’s traditional peak year-end season.”
Asia-Pacific airlines saw their air cargo volumes increase by 4.9 per cent in August 2023 compared to the same month in 2022. This was a significant improvement in performance compared to July (+2.3 per cent).
Carriers in the region benefited from growth on two major trade lanes: Europe-Asia (up from 3.1 per cent in July to 8.8 per cent in August) and Middle East-Asia (up from 2.7 per cent in July to 3.5 per cent in August).
Additionally, the within-Asia trade lane also performed better in August, with international CTKs contracting by 4.7 per cent compared to the 9.7 per cent annual decline in July. Available capacity for the region’s airlines increased by 28.5 per cent compared to August 2022 as more belly capacity came online from the passenger side of the business.
