The International Air Transport Association (IATA) has released its May 2022 global air cargo markets results.
According to the report, the easing of restrictions related to the Omicron variant in China helped alleviate supply chain issues and improve performance in May.
- Global demand, measured in cargo ton kilometers (CTKs*), was 8,3% below May 2021 levels (-8,1% for international operations). This result represented an improvement over the 9,1% drop recorded in April.
- Capacity was 2,7% higher than in May 2021 (+5,7% for international operations). This result was better than the annual drop of 0,7% ed in April. Capacity increased in all regions, with Asia Pacific showing the highest rate of increase.
- Several factors impacted air cargo performance in May:
– Trading activity increased slightly in May with the relaxation of restrictions related to the Omicron variant in China. Emerging regions also contributed to the growth, showing an increase in volumes.
– New export orders, a leading indicator of cargo demand and world trade, declined in all markets except China.
– The war in Ukraine continues to affect the cargo capacity serving Europe, as several major airlines for cargo transport are from Russia and Ukraine.
“The month of May brought positive news for air cargo, mainly due to the easing of some restrictions related to the Omicron variant in China. Seasonally adjusted, we observed growth (0,3%) after two months of decline. The return of Asian production with the easing of COVID-19 measures, particularly in China, will air cargo demand. The strong recovery in enger traffic has also increased cargo capacity in the hold of enger aircraft, with the exception of some markets where the capacity crisis is more critical. However, the uncertainty in the overall economic situation will have to be watched very carefully.”, said Willie Walsh, director general of IATA.
Performance by Region in May 2022
Airlines in the Asia-Pacific region reported a 6,6% drop in May 2022 compared to the same month in 2021. This index was a significant improvement over the 15,8% drop recorded in April. Airlines in the region were heavily impacted by reduced commercial and industrial activity due to restrictions related to the Omicron variant in China, but this began to ease in May when restrictions were eased. Available capacity in the region dropped by 7,4% compared to May 2021.
North America carriers recorded a 5,7% drop in cargo volumes in May 2022 compared to May 2021. Demand in the Asia-North America market has remained subdued, but other key routes such as Europe-North America remain strong. Capacity increased by 6,8% compared to May 2021. Several carriers in the region are expected to receive new freighters this year, which should help meet pent-up demand on certain routes, if economic adversities do not persist.
Europe's carriers reported a 14,6% drop in air cargo volumes in May 2022 compared to the same month in 2021. This was the worst performance among all regions, which is related to the war in Ukraine. Labor shortages and lower manufacturing activity in Asia due to the Omicron variant also affected volumes. Capacity increased by 3,3% in May 2022 compared to May 2021.
The Middle East Carriers recorded an 11,6% drop in air cargo volumes in May 2022 versus May 2021. The significant benefits of redirecting traffic away from Russia did not materialize. This is likely due to persistent supply chain issues in Asia. Capacity increased by 7,6% compared to May 2021.
Carriers in Latin America reported a 13,8% increase in air cargo volumes in May 2022 compared to the same month in 2021. This was the best result among all regions. Airlines in the region have shown optimism and have introduced new services and capacity and, in some cases, invested in additional aircraft for air cargo in the coming months. Capacity in May increased by 33,3% compared to the same month in 2021.
African airlines recorded a 1,5% drop in air cargo volumes in May 2022 versus May 2021. This result was significantly lower than the growth recorded in the previous month (6,3%). Capacity was 3,0% above the level recorded in May 2021.
