GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Travel, Tourism and Hotels

 
  Share

Dubai, UAE, July 6, 2017:  The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), grew 12.7% in May 2017 compared to the year-earlier period. This was up from the 8.7% annual growth recorded in April 2017 and is more than three times higher than the five year average growth rate of 3.8%. 

Freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 5.2% year-on-year in May 2017. 

The continued growth of air freight demand is consistent with an improvement in world trade. This, in turn, corresponds with new global export orders remaining close to a six-year high in May. There are, however, some signs that the cyclical growth period may have peaked. The global inventory-to-sales ratio, for example, has started rising. This indicates that the period when companies look to re-stock inventories quickly, which often gives air cargo a boost, has ended.  Regardless of these developments, the outlook for air freight is optimistic with demand expected to grow at a robust rate of 8% during Q3 2017. 

“May was another good month for air cargo. Demand growth accelerated, bolstered by strong export orders. And that outpaced capacity growth which should be positive for yields. But the industry can't afford to rest on its laurels. With indications that the cyclical growth period may have peaked, the onus is on the industry to improve its value proposition by accelerating process modernization and enhancing customer-centricity,” said Alexandre de Juniac, IATA's Director General and CEO.

Air freight market detail - May 2017

  World
Share1
May 2017 (% year-on-year)
FTK AFTK FLF (%-pt)2 FLF (level)3
TOTAL MARKET 100.0% 12.7% 5.2% 3.0% 45.2%
Africa 1.6% 27.6% 14.7% 2.6% 26.2%
Asia Pacific 37.4% 11.3% 6.2% 2.5% 54.7%
Europe 23.5% 15.0% 5.7% 3.8% 46.5%
Latin America 2.8% 6.7% 7.1% -0.1% 33.7%
Middle East 13.9% 10.2% 1.7% 3.5% 45.6%
North America 20.7% 13.9% 4.1% 3.1% 36.4%

1% of industry FTKs in 2016     2Year-on-year change in load factor     3Load Factor Level

Regional Performance

All regions, with the exception of Latin America, reported year-on-year double-digit increases in demand in May 2017. 

Asia-Pacific airlines' freight volumes expanded 11.3% in May 2017 compared to the same period a year earlier and capacity increased by 6.2%. Demand growth has been strongest, between 13-15%, on international routes within Asia as well as between Asia and Europe.  Seasonally-adjusted volumes are now 3% above the volumes reached following the 2010 post-global financial crisis bounce-back. 

North American carriers posted an increase in freight volumes of 13.9% in May 2017, and a capacity increase of 4.1%. Seasonally-adjusted volumes rose again in May, after a jump in April, indicating signs of a lasting pick up. The strength of the US dollar continues to boost the inbound freight market but is keeping the export market under pressure. 

European airlines posted a 15.0% increase in freight volumes in May 2017 and a capacity increase of 5.7%. International freight volumes grew by 15.2% year-on-year in May with airlines benefiting from strong demand on the Europe-Asia market. The ongoing weakness of the Euro persists in boosting the performance of the European freight market which continues to benefit from strong export orders. 

Middle Eastern carriers' year-on-year freight volumes increased 10.2% in May 2017. This was a sharp jump from the 3.1% dip in April. The recent swings in the growth rate appear to be mainly a reflection of the more volatile monthly data last year. Capacity increased 1.7%. Seasonally-adjusted freight volumes maintained their upward trend. Demand between the Middle East and Europe remains strong, increasing 19% so far this year but traffic to Asia has weakened, growing by just over 1%. 

Latin American airlines experienced a growth in demand of 6.7% in May 2017 compared to the same period in 2016. Capacity increased by 7.1% over the same period. Seasonally-adjusted volumes grew slightly in May however they remained 12% lower than at the peak in 2014. The region's carriers have managed to adjust capacity, which has limited the negative impact on the load factor. 

African carriers' posted the largest year-on-year increase in demand of all regions in May 2017 with freight volumes growing 27.6%. Capacity increased by 14.7% over the same time period. Demand has been boosted by very strong growth on the trade lanes to and from Asia which have increased by nearly 57% so far this year. However seasonally adjusted growth has levelled off in recent months. 



Posted by : GoDubai Editorial Team
Viewed 12206 times
Posted on : Thursday, July 6, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Passenger Demand Moderates from Recent Peak but Stays Strong
Next Story : British Airways Announces Partnership with the White Company
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
The Overnight Success Podcast Brought to You by Maria Hatzistefanis
Glisten & Glow this Festive Season with Skin Republic Masks
D1 Milano Launches Exlcusive Limited Edition Collection –The Khaleeji
The Incredible Power of the Mushroom!
Carl F. Bucherer Celebrates Its Anniversary With the Heritage Tourbillon Double ...
GaGà Milano unveils six extra-special watches to celebrate Neymar's genius
Beware of Cheap Beauty Deals: They May End Up Being More Costly
8 Jours Grande Taille - a new avatar on iconic timepiece
Tissot Lady Heart Flower Powermatic 80
Get Ready for The Festive Season with The Body Shop's Enchanted by Nature Gift C...
Sukin's Top Holiday Picks for a Supple-Skin Winter Season
Switch your hair colour safely for the new season with Rahua's Color Full range
Omega Raises Its Warranty On All Watches to 5 Years
Everyday care for your baby's hair with Fifi & Friends!
Bringing you warmth and shine this festive season
Season's Greetings 2018
Twelve Holiday Gifts for the Beauty-Obsessed Woman
The Smile Bar Opens Its First Store in the UAE
Chloé Eyewear's Feminine Appeal Seen Through the Lens of the New “Rosie” Style
#MKGO Bold: Michael Kors Unveils Bold New Arrivals
Triumphant First Daman Dxb Swimfest at Jumeirah Beach Hotel
Indulge Your Love for Animal Print with M&S
Alina Anwar Couture Launches in UAE
Must-have festive Christmas jumpers and tees for the whole family
Purely Pandora Classics With a Twist
Author Dubai Abulhoul Calls for the Preservation of Emirati Folktales
Starbucks announces the return of festive favourites
Parah dedicates its Fall/Winter 2018/19 collection to femininity
Le Clos Excited About the First Daman DXB Swimfest
National Geographic Launches Mars 2 into Orbit with Season 2 Premiering Nov 15 ...
Give an abandoned or neglected cat their forever home at Kittysnip's adoption da...
Land Rover Supports Red Cross Disaster Projects Worldwide
‘Celebrate 2019 Now' with special deals from Al-Futtaim Toyota
New 1948 Seamaster Watches Join the Ranks
EDCC organizes largest UAE Pavilion at debut SNSR in Saudi Arabia
Dubai Customs helps brand owners to recycle 18 m counterfeit items
Sprint for a Great Cause at Al Maha
Emirates Steel signs new long-term iron ore pellet supply deal with Vale
Department of Culture and Tourism – Abu Dhabi Organises ‘Herfaty' Programme in A...
Jameel Arts Centre, Dubai opens with an ambitious set of exhibitions and program...
Unilever MENA calls for collective action as it's revealed that 54% of consumers...
Etihad Airways Launches Model Diary of Xiaowen at China International Import Expo
The Sharjah Stamp Exhibition celebrates the Year of Zayed
Top five new things to do at Golden Mile Galleria this season
A new 2019 Toyota Rush grade hits the road
Add a festive sparkle to your eyes with Palladio Beauty
Presenting Katrina Kaif in her hottest desi avatar as Suraiyya in Thugs of Hindostan
Babson College onboard as Education Partner at the GOV HR Summit
Dubai Customs organizes workshop on blockchain technology in customs business
IKEA Promises 25 Years of Quality Guarantee