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Mon 7 Mar 2016 03:46 PM

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MidEast carriers post 8.8% growth in January cargo business

IATA says region's airlines continue to enjoy strong growth in freight volumes, helped by fleet expansion

MidEast carriers post 8.8% growth in January cargo business
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Middle Eastern carriers resumed their strong growth trend in cargo volumes at the beginning of 2016, expanding 8.8 percent in January, according to the International Air Transport Association (IATA).

The region's freight load factor was broadly stable, declining just 0.3 percent to 39.2 percent during the month compared to the year-earlier period, IATA said in a statement.

"The region’s airlines continue to enjoy strong growth, helped by large-scale network and fleet expansion," said the statement.

Globally, IATA said air freight markets in January showed a rise in freight tonne kilometres (FTK) of 2.7 percent compared to January 2015.

This continues the improving trend witnessed toward the end of 2015, and is the fastest pace since April of last year. The freight load factor fell 1.8 percent, indicating that yields are likely to come under further pressure.

Total FTKs in January surpassed the previous all-time peak reached in February 2015, IATA added with all regions except the smallest markets of Africa and Latin America expanding.

IATA said despite this good start, the underlying weak trade performance makes it unlikely that growth will accelerate significantly in the coming months.   

"It is good news that volumes are growing, but yields and revenues are still under tremendous pressure. Air cargo plays a vital role in our globalized and fast-paced world in which trade is the foundation for long-term prosperity. Removing barriers to trade is a win-win," said Tony Tyler, IATA’s director general and CEO.

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