March Sees Air Cargo Record Fourth Month of Double-Digit Growth

by News Desk 1 year ago Transport International Air Transport Association (IATA)

In March, demand increased by double digits year over year for the fourth time running, with cargo tonne-kilometres flown significantly more than during the same period in the previous year.

The March 2024 report from the International Air Transport Association (IATA) reveals robust growth in global air cargo markets, maintaining a steady upward trend. Total demand, measured in cargo tonne-kilometers (CTKs*), surged by 10.3% compared to March 2023 levels (with international operations experiencing an 11.4% increase). This marks the fourth consecutive month of double-digit year-on-year growth. Capacity, gauged in available cargo tonne-kilometers (ACTKs), also saw an uptick, rising by 7.3% compared to March 2023 (with international operations showing a 10.5% increase).

Key highlights from the operational landscape include:

1. Global cross-border trade and industrial production witnessed positive growth in February, with increases of 1.2% and 1.6% respectively.

2. March saw an expansion in manufacturing output Purchasing Managers’ Index (PMI), reaching 51.9, indicating growth. However, the new export orders PMI edged slightly below the 50 threshold, standing at 49.5, hinting at tempered growth expectations.

3. Inflation trends in March varied across regions. While the EU and Japan experienced declines to 2.6% and 2.7% respectively, the US witnessed a rise to 3.5%. Conversely, China reported a marginal deflation of -0.01%, marking a return to deflation after a brief inflationary period in February.

Performance by Region in March:

Asia-Pacific carriers led in demand growth for air cargo, with a notable 14.3% year-on-year increase. Demand for the Asia-Europe route rose by 2.7 ppt to 17.0%, and within Asia, market growth climbed by 6.7 ppt to 11.8%. Capacity also surged by 14.3% year-on-year.

North American carriers experienced the most subdued demand growth at 0.9% year-on-year. Notable growth was seen on the North America–Europe trade lane, up by 2.9% year-on-year, while Asia–North America saw a 4.7% year-on-year increase. However, March capacity dipped by -1.9% year-on-year.

European carriers recorded a solid 10.0% year-on-year demand growth for air cargo in March. Intra-European air cargo notably surged by 24.7% year-on-year, while routes like Europe–Middle East and Europe–North America expanded by 38.3% and 2.9% year-on-year respectively. Capacity increased by 8.0% year-on-year.

Middle Eastern carriers showcased the strongest performance, with a remarkable 19.9% year-on-year demand growth for air cargo in March. The Middle East–Europe market emerged as the top performer with a 38.3% growth rate, surpassing Middle East-Asia which grew by 19.6% year-on-year. March capacity increased by 10.6% year-on-year.

Latin American carriers witnessed a solid 9.2% year-on-year demand growth for air cargo in March, with capacity also increasing by 7.0% year-on-year.

African airlines observed a significant 14.2% year-on-year demand growth for air cargo in March. However, the Africa–Asia market saw a notable decrease to 22.9%, marking a 19.8 contraction compared to February. March capacity increased by 17.3% year-on-year.

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