The International Air Transport Association (IATA) released August 2022 global air cargo markets results, which demonstrated resilience amid economic uncertainties.
- Global demand, measured in freight tonne kilometers (CTKs*), was 8,3% below August 2021 levels (-9,3% for international operations). This result is a small improvement over the 9,7% decline recorded in July 2022 versus July 2021.
- Capacity was 6,3% above that ed in August 2021 (+6,1% for international operations). This is a significant increase from the 3,6% annual increase recorded in July 2022 versus July 2021.
- Several factors should be highlighted in the operating environment:
-
- Global merchandise trade expanded slightly in August and the easing of COVID-19 restrictions in China will positively affect cargo markets.
- While maritime transport is the main favourite, air cargo transport will also benefit from these developments.
- Inflation levels in the G7 countries slowed down for the first time since November 2020.
- Oil prices stabilized in August and the “crack spread” (difference between the price of fuel against a barrel of crude oil) for aviation fuel fell after reaching its peak in June.
- New export orders, a leading indicator of cargo demand and global trade, declined in major economies in all regions except the United States.
“Air cargo transport continues to demonstrate its resilience. Cargo volumes, although below the exceptional performance of 2021, are relatively stable in the face of economic uncertainties and geopolitical conflicts. Markets remain mixed. The month of August presented several indicators with an upward potential: oil prices stabilized, inflation decelerated and there was a slight expansion of globally traded goods. But the reduction in new export orders in all markets, except the United States, indicates that developments in the coming months will have to be watched carefully”, said Willie Walsh, Director General of IATA.
Performance by Region in August 2022
Carriers in Latin America reported a 9,0% increase in air cargo volumes in August 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 August increased by 24,3% compared to the same month in 2021.
Airlines in the Asia-Pacific region reported an 8,3% decline in air cargo volumes in August 2022 compared to the same month in 2021. This result was an improvement over the 9,0% decline recorded in July. Airlines in the region have benefited from the slight increase in commercial and industrial activity due to the relaxation of COVID-19 restrictions in China. Available capacity in the region increased by 13,9% when compared to August 2021 capacity, a significant increase from the 2,7% growth recorded in July.
North America carriers recorded a 3,4% drop in cargo volumes in August 2022 compared to August 2021. This index represents an improvement over the 5,7% drop recorded in July. The easing of restrictions in China has improved demand and a further increase is expected in the coming months. Capacity increased by 5,7% compared to August 2021.
Europe's carriers reported a 15,1% drop in air cargo volumes in August 2022 compared to the same month in 2021. This was the worst performance among all regions for the fourth consecutive month and is related to the war in Ukraine. Labor shortages and high levels of inflation, particularly in Turkey, also affected volumes. Capacity increased by 0,4% in August 2022 compared to August 2021.
The Middle East Carriers ed an 11,3% drop in air cargo volumes in August 2022 versus August 2021. Stagnant cargo volumes to/from Europe have impacted the region's performance. Capacity was down 0,1% from August 2021.
African airlines ed an increase of 1,0% in August 2022 compared to August 2021. This result represents a significant improvement in relation to the growth ed in the previous month (-3,5%). Capacity was 1,4% below August 2021 levels.
