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, August 2, 2017: The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), grew by 10.4% in the first-half of 2017 compared to the first-half of 2016. This was the strongest first half-year performance since air cargo's rebound from the Global Financial Crisis in 2010 and nearly triple the industry's average growth rate of 3.9% over the last five years.

Freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 3.6% in the first half of 2017 compared to the same period in 2016. Demand growth continues to significantly outstrip capacity growth, which is positive for yields.

Air cargo's strong performance in the first half of 2017 was confirmed by June's results. Year-on-year demand growth in June increased 11% compared to the same year-earlier period. Freight capacity grew by 5.2% year-on-year in June.

The sustained growth of air freight demand is consistent with an improvement in global trade, with new global export orders remaining close to a six-year high. However, there are some signs that the cyclical growth period may have peaked. The global inventory-to-sales ratio has stopped falling. This indicates that the period when companies look to restock inventories quickly, which often gives air cargo a boost, may be nearing an end. Regardless of these developments, the outlook for air freight is optimistic with demand expected to grow at a robust rate of 8% during the third quarter of this year.

“Air cargo is flying high on the back of a stronger global economy. Demand is growing at a faster pace than at any time since the Global Financial Crisis. That's great news after many years of stagnation. And, even more importantly, the industry is taking advantage of this momentum to accelerate much-needed process modernization and improve the value it provides to its many customers,” said Alexandre de Juniac, IATA's Director General and CEO.

Regional Performance

All regions experienced positive freight growth in the first half of 2017. Carriers in Asia Pacific and Europe accounted for two-thirds of the increase in demand.

Asia-Pacific airlines' freight volumes grew 10.1% in June 2017 compared to the same period in 2016 and capacity grew by 7.8%. This contributed to a growth in freight demand of 10.1% in the first half of 2017 compared to the first half of 2016. Seasonally adjusted international freight volumes are now 4% above the level reached in 2010 following the global financial crisis bounce-back. Demand growth has been strongest, between 13-15%, on international routes within Asia as well as between Asia and Europe. Capacity in the region increased 4.8% in the first half of 2017.

North American carriers saw freight demand increase by 12.7% in June 2017 year-on-year and capacity increase by 3%. This contributed to strong growth in demand in the first half of 2017 of 9.3% in contrast to the negative growth seen during the same period in 2016. Capacity grew by 1.5% in the first half of 2017. Seasonally adjusted international volumes remain very strong, surging by an annualized rate of more than 30% in the second quarter. 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 14.3% year-on-year increase in freight demand in June 2017 and a capacity rise of 6.1%. The healthy results helped boost cargo volumes for the first half of 2017 by 13.6%. The ongoing weakness of the Euro persists in boosting the performance of the European freight market which continues to benefit from strong export orders. Capacity in the region increased by 5.4% in the first half of 2017.

Middle Eastern carriers' freight volumes increased 3.7% year-on-year in June 2017 and capacity increased 2.2%. This contributed to an increase in demand in the first half of 2017 of 7.6%, well below the 10.8% average annual rate seen over the past five years. The slowdown in growth is mainly due to strong competition from carriers in other regions particularly on the Asia-Europe route rather than a significant decrease in demand which has continued to trend upwards at a solid rate of around 10% in annualized terms since early 2017. For the first time in 17 years the region's share of total international freight flown in the first half of 2017 has fallen. Capacity in the region increased by 1.5% in the first half of 2017.

Latin American airlines experienced a growth in demand of 9.8% in June 2017 compared to the same period in 2016 - the fastest since November 2010 - and an increase in capacity of 2.9%. June's positive results contributed to the region posting a marginal increase in demand of 0.3% for the first half of 2017. However, seasonally adjusted international volumes remain 10% lower than at the peak in 2014. Capacity fell by 0.6% in the first half of 2017. The region continues to be blighted by weak economic and political conditions, particularly in its largest economy, Brazil.

African carriers had the fastest growth in year-on-year freight volumes, up 31.6% in June 2017 and a capacity increase of 7.6%. This contributed to freight demand growing 25.9% in the first half of 2017 – the fastest of all regions. Demand has been boosted by very strong growth on the trade lanes to and from Asia which have increased by nearly 60% in the first five months of 2017. Capacity grew 11.2% in the first half of the year. Seasonally adjusted growth has levelled off in recent months; however growth is set to remain in double digits for the remainder of 2017.



Posted by : GoDubai Editorial Team
Viewed 7412 times
Posted on : Wednesday, August 2, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Jazeera Airways announces Q2 2017 financial results, reports double digit growth in operating and ne...
Next Story : DC Aviation Al-Futtaim adds Challenger aircraft to managed fleet
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
Michael Kors Presents Spring 2018 Jewelry
Max Fashion #ForgetFilters Campaign Celebrates Living for the Moment
Malabar Gold & Diamonds makes historic gain Opens 11 showrooms in a day across 6...
IKEA Welcomes Children in-store to Spread Love for the Arabic Language as Part o...
Sports Bras Banishing Bounce by 83% arrive in store
LG Exploring New Commercial Opportunities With Expanding Robot Portfolio
Transform Your Lips With Glitter Flip Liquid Lipsticks from Ciaté London
We Sheet You Not! Foreo Announces End of Face Mask Epidemic
Transform Your Skin In 2018 with QNET's Revolutionary Elixa Skincare
Experience the ultimate beauty extravaganza as MyBeautyFest kicks off with the i...
Qabala joins Air Arabia's Azerbaijan network
Golden Bridge Rectangle Diamonds designed to dazzle
Michael Kors Presents Spring 2018 Watches
AIGNER Love
New Year, New Skincare!
Bubble Clown by Matt Barnes
Coach presents the Grand Stainless Steel Bracelet Watch Collection
OMEGA and Pyeongchang 2018
Land Rover's 70th Anniversary Begins With Restoration of ‘Missing' Original 4x4
Garden Party Style and Cult Classics: Swatch Launches Spring-summer 2018 Collection
Corum Bubble Art For Those Who Appreciate A Work Of Art
Shimmering Gilda takes on a silvery sheen
Marine Torpilleur Military made for men who chart their own destiny
Joyalukkas grows presence in Singapore with new showroom on Serangoon Road
New Year – New Savings now with Al-Futtaim Honda
Spring/Summer 18' Beauty Picks from Missha Cosmetics
Samsung Delivers Vision for Open and Intelligent IoT Experiences to Simplify Eve...
Samsung Electronics' 2018 Smart TVs Become First to be Industry-Certified for En...
Scuderia Ferrari presents the latest RedRev Watch Collection
Dubai Culture Organises ‘Carnival of Ideas'
EUROSTAR presents seven global tech majors at CABSAT 2018
Signature Scents for Your Home
Malabar Gold & Diamonds strengthens its global position as a leading jewellery r...
Nissan and NASA extend research into autonomous mobility services
Nissan reaffirms importance of electrification at World Future Energy Summit
World Future Energy Summit's inaugural Mobility Conference to discuss future of ...
Dubai Tour team line-up announced: 16 teams of seven riders at the start
Abu Dhabi Quality and Conformity Council Completes Verification of Fuel Meters a...
Mashreq Bank offering credit cards for every passion
Renault-Nissan-Mitsubishi Launches a Venture Capital Fund to Invest Up to $1 Bil...
Panasonic Jaguar Racing Set Their Sights on Marrakesh E-Prix
HP Fuels the Future of Computing at CES 2018
Mido's Baroncelli Prisma - A sparkling play of prisms enhanced by 51 diamonds'
Governments to Signal Support for IRENA Key Role in Global Energy Transformation
ZAKK Air specialised headset for athletes launched in UAE
LG's Award-winning 4k Uhd Projector to Debut at CES 2018
HH Sheikh Hasher Bin Maktoum Al Maktoum opens CABSAT 2018
Dallas Picks Ericsson for Smart Cities Traffic Solution
Property Remains Preffered 2018 Investment Asset for UAE Residents
His Highness Sheikh Hasher bin Maktoum bin Juma Al Maktoum Visits du's Stand on ...