Middle Eastern airlines’ freight volumes contracted 4.5 percent in January as global air cargo demand slumped to a three-year low, according to the International Air Transport Association (IATA).
IATA said capacity increased by 4.1 percent compared to the year-earlier period, adding that seasonally-adjusted international air cargo demand, which trended upwards for the past three months helped by stronger trade to/from Europe and Asia, has started to decline.
Globally, IATA said air cargo demand decreased 1.8 percent in January, the worst performance in the last three years.
Freight capacity rose by 4 percent year-on-year in January - the eleventh month in a row that capacity growth outstripped demand growth.
Demand for air cargo continues to face significant headwinds as global economic activity and consumer confidence have weakened.
”Air cargo markets contracted in January. This is a worsening of a weakening trend that started in mid-2018. Unless protectionist measures and trade tensions diminish there is little prospect of a quick re-bound,” said Alexandre de Juniac, IATA’s director general and CEO.
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