By Staff writer
Latest IATA figures shows 6.7% increase in regional freight growth, half of the 14% seen annually between 2012-15
Middle Eastern carriers saw air freight demand increase by 6.7 percent in July compared to the same month last year, according to the International Air Transport Association (IATA).
IATA said in a statement that regional airlines saw capacity increase by 11 percent in the same period.
"The region’s growth rate, while still strong, has eased to half the 14 percent recorded annually between 2012 and 2015. This is mainly attributable to slower freight growth between the Middle East and Asia," IATA said.
Globally, IATA said air freight markets in July showed robust growth in demand. Measured in freight tonne kilometres (FTKs), demand increased 5 percent in July compared to July 2015.
This was the fastest pace in almost 18 months. Freight capacity measured in available freight tonne kilometres (AFTKs) increased by 5.2 percent year-on-year, outstripping demand and keeping yields under pressure.
Despite the subdued global trade backdrop, carriers in the world's four biggest air cargo markets – Asia-Pacific, Europe, North America and the Middle East - reported an increase in freight demand. The strongest growth occurred in Europe and the Middle East, with July demand up by 7.2 percent and 6.7 percent respectively.
"July was a positive month for air freight—which is an all too rare occurrence. Despite that, we must recognize that we face some strong headwinds on fundamental aspects of the business. Global trade growth is sluggish and business confidence is weak. And the political rhetoric on both sides of the Atlantic is not encouraging for further trade liberalization," said Alexandre de Juniac, IATA’s director general and CEO.