AIR CARGO DEMAND SHOWS IMPROVEMENT IN JUNE
On 7 August, the International Air Transport Association (IATA) released its June 2023 global air cargo data, which highlighted the smallest year-over-year contraction in demand since February 2022. This data suggests a potential turning point for the industry.
In terms of cargo tonne-kilometers (CTKs), demand witnessed a moderate 3.4% decline compared to June 2022, with international operations experiencing a slightly larger contraction of 3.7%. Notably, this reduction is considerably milder than previous months, indicating a potential positive shift for the industry's recovery. Although demand for the first half of 2023 decreased by 8.1% compared to the same period in 2022, June's demand was only 2.4% below the pre-pandemic levels recorded in June 2019.
Available cargo tonne-kilometers (ACTKs) exhibited a 9.7% year-over-year increase in June 2023, albeit at a slower growth rate compared to previous months. This reflects airlines' strategic adjustments in response to demand uncertainties. For the first half of 2023, capacity surged significantly by 9.9% compared to the previous year, currently standing 3.7% above June 2019 levels.
In Europe, carriers witnessed a 2.8% decrease in cargo volume in June 2023 compared to the same month in 2022. This performance represents an improvement over May's figures (-6.6%), partially attributed to the Europe-North America trade route. Capacity, on the other hand, increased by 4.4% compared to June 2022.
Willie Walsh, IATA’s Director General, expressed a sense of optimism, as he foresees the potential for central banks to stimulate economic activity by easing inflation in major economies, which could provide much-needed relief to the air cargo sector.
Source: IATA