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 and Tourism

 
  Share

Dubai, UAE, July 6, 2017:  The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometers (FTKs), grew 12.7% in May 2017 compared to the year-earlier period. This was up from the 8.7% annual growth recorded in April 2017 and is more than three times higher than the five year average growth rate of 3.8%. 

Freight capacity, measured in available freight tonne kilometers (AFTKs), grew by 5.2% year-on-year in May 2017. 

The continued growth of air freight demand is consistent with an improvement in world trade. This, in turn, corresponds with new global export orders remaining close to a six-year high in May. There are, however, some signs that the cyclical growth period may have peaked. The global inventory-to-sales ratio, for example, has started rising. This indicates that the period when companies look to re-stock inventories quickly, which often gives air cargo a boost, has ended.  Regardless of these developments, the outlook for air freight is optimistic with demand expected to grow at a robust rate of 8% during Q3 2017. 

“May was another good month for air cargo. Demand growth accelerated, bolstered by strong export orders. And that outpaced capacity growth which should be positive for yields. But the industry can't afford to rest on its laurels. With indications that the cyclical growth period may have peaked, the onus is on the industry to improve its value proposition by accelerating process modernization and enhancing customer-centricity,” said Alexandre de Juniac, IATA's Director General and CEO.

Air freight market detail - May 2017

  World
Share1
May 2017 (% year-on-year)
FTK AFTK FLF (%-pt)2 FLF (level)3
TOTAL MARKET 100.0% 12.7% 5.2% 3.0% 45.2%
Africa 1.6% 27.6% 14.7% 2.6% 26.2%
Asia Pacific 37.4% 11.3% 6.2% 2.5% 54.7%
Europe 23.5% 15.0% 5.7% 3.8% 46.5%
Latin America 2.8% 6.7% 7.1% -0.1% 33.7%
Middle East 13.9% 10.2% 1.7% 3.5% 45.6%
North America 20.7% 13.9% 4.1% 3.1% 36.4%

1% of industry FTKs in 2016     2Year-on-year change in load factor     3Load Factor Level

Regional Performance

All regions, with the exception of Latin America, reported year-on-year double-digit increases in demand in May 2017. 

Asia-Pacific airlines' freight volumes expanded 11.3% in May 2017 compared to the same period a year earlier and capacity increased by 6.2%. Demand growth has been strongest, between 13-15%, on international routes within Asia as well as between Asia and Europe.  Seasonally-adjusted volumes are now 3% above the volumes reached following the 2010 post-global financial crisis bounce-back. 

North American carriers posted an increase in freight volumes of 13.9% in May 2017, and a capacity increase of 4.1%. Seasonally-adjusted volumes rose again in May, after a jump in April, indicating signs of a lasting pick up. 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 15.0% increase in freight volumes in May 2017 and a capacity increase of 5.7%. International freight volumes grew by 15.2% year-on-year in May with airlines benefiting from strong demand on the Europe-Asia market. The ongoing weakness of the Euro persists in boosting the performance of the European freight market which continues to benefit from strong export orders. 

Middle Eastern carriers' year-on-year freight volumes increased 10.2% in May 2017. This was a sharp jump from the 3.1% dip in April. The recent swings in the growth rate appear to be mainly a reflection of the more volatile monthly data last year. Capacity increased 1.7%. Seasonally-adjusted freight volumes maintained their upward trend. Demand between the Middle East and Europe remains strong, increasing 19% so far this year but traffic to Asia has weakened, growing by just over 1%. 

Latin American airlines experienced a growth in demand of 6.7% in May 2017 compared to the same period in 2016. Capacity increased by 7.1% over the same period. Seasonally-adjusted volumes grew slightly in May however they remained 12% lower than at the peak in 2014. The region's carriers have managed to adjust capacity, which has limited the negative impact on the load factor. 

African carriers' posted the largest year-on-year increase in demand of all regions in May 2017 with freight volumes growing 27.6%. Capacity increased by 14.7% over the same time period. Demand has been boosted by very strong growth on the trade lanes to and from Asia which have increased by nearly 57% so far this year. However seasonally adjusted growth has levelled off in recent months. 



Posted by : GoDubai Editorial Team
Viewed 11175 times
Posted on : Thursday, July 6, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Passenger Demand Moderates from Recent Peak but Stays Strong
Next Story : British Airways Announces Partnership with the White Company
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
100% Vegan New… Body Yogurts 15 Seconds to Glowing Healthy-looking Skin Spoon It on
Therése Neaimé- Sold to perfection
Linda Paradis brings non-invasive ink removal to Dubai
Timeless Ties
Sony's PXW-Z280, World's first 4K 3-chip Camcorder with new 1/2-type Exmor R CMO...
Martin Hoping for Amstel Gold as Irishman Leads Team to Ardennes Classics
Tommy Hilfiger's SS2018 men's and women's watch collection
COLAB - Dry Shampoo
ORANGE & BERGAMOT Awaken the Cult Icon New Additions
Accessories Collection 2018 Gentleman Attitude
Al-futtaim Names Its New Dubai Lifestyle Mall – ‘Festival Plaza'
Skyline Mega Fitness Challenge Sparked Positivity and Happiness
FOREO delivers the ultimate festival survival kit for a glow-on-the-go.
Samsung launches Exciting Smartphone Trade-In Program with Galaxy S9 or S9+
Summertime Beauty Picks at Glambeaute.com
Enhance skin radiance, smoothness and brightness in just 14 days, with the new J...
Get the best bargains at Dragon Mart's End of Season Clearance Market
Dubai Sports Council Pavilion a big hit at Bangkok SportAccord
Dubai-based Al Kasir Group launches three Crypto assets backed by diamonds
Skyline University College Economics Day 2018: One Step towards Tomorrow
Get Vibrant and lively hair with Rahua's new Color Full Range
A Royal Ramadan Experience by Master Chef Mama in Pullman Dubai Creek City Centre
New XE 300 Sport Edition Wins Gripping Ice Race
New Blow Out Bar and Make-Up Studio SWISH by Immaclife Opens in Abu Dhabi in Apr...
Filorga Mesotherapist Derma Roller
Rolling Cones, a new luxury ice cream concept, launches at the Hyatt Regency Dub...
The Perfect Gift Mark
du to Offer New 9.7-inch iPad With Apple Pencil Support
Finnair to offer a hand baggage only ticket type on selected North Atlantic routes
Abu Dhabi Ship Building Company Launches Two 64-Meter Landing Ships for the Kuwa...
Penny Scallan Design Launches in the Middle East
Mumzworld Announce Recruitment Drive To Empower Women in the Middle East
Sheikh Sultan bin Ahmed Al Qasimi Leads Sharjah Contingent to Kuwait Arab Media Forum
MINI at Auto China Beijing 2018
The new BMW M2 Competition
Genesis G70 Luxury Sedan Arrives in Middle East
10 Kg gold for 100 winners at Malabar Gold & Diamonds
Exclusive, Limited‐Edition, Swiss‐Made Cryptocurrency Watches
Olivia Burton Marble Florals - Embrace these styles for a new artistic way to wo...
Toshiba Releases New, Powerful Surveillance and Video Streaming Internal Consume...
Pandora Shine Discover A New Way to Shine
Lingual Orthodontic Treatment now a reality at Al Mariffa Medical Center
Qualcomm Unveils the Vision Intelligence Platform Purpose-built for IoT Devices ...
Understanding what women want Balmain reveals the Madrigal Mini II
Munich Airport reports record net annual profit of €155 million for 2017
Adamavi - Elegant, Timeles S, and Reliable
Stylish Nursing wear at Mums and Bumps
Airport Show Attracts Influential Aviation Leaders for Global Airport Leaders Fo...
Pandora Spring Embrace Nature's Beauty
Village Street Sale at The Outlet Village offers designer outfits at great prices