International Air Transport Association says capacity outstrips demand in Middle East region
Middle East-based airlines saw freight volumes expand by 5 percent in October compared to the same month a year earlier, according to the International Air Transport Association (IATA).
The aviation authority said on Wednesday that regional capacity increased by 8.8 percent over the same period.
IATA said: "There are signs of a pick-up in seasonally-adjusted international air cargo demand helped by more trade to/from Europe and Asia."
Globally, IATA said air freight demand rose 3.1 percent in October, with the pace of growth up from a 29-month low of 2.5 percent in September.
Freight capacity rose by 5.4 percent year-on-year in October which was the eighth month in a row that capacity growth outstripped demand.
Growing international e-commerce and an upturn in the global investment cycle are supporting growth but demand continues to be negatively impacted by a contraction in export order books in all major exporting nations in October plus weakened consumer confidence compared to very high levels at the beginning of 2018, IATA added.
“Cargo is a tough business, but we can be cautiously optimistic as we approach the end of 2018. Slow but steady growth continues despite trade tensions. The growth of e-commerce is more than making up for sluggishness in more traditional markets. And yields are strengthening in the traditionally busy fourth quarter. We must be conscious of the economic headwinds, but the industry looks set to bring the year to a close on a positive note,” said Alexandre de Juniac, IATA's director general and CEO.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.