Airfreight volumes increased in Aug-2014, driven by domestic markets: IATA

IATA reported (30-Sep-2014) a second month of year-on-year growth in airfreight volumes in Aug-2014 reflected improving demand conditions in some regions. Volume expansion in Aug-2014 was driven by domestic markets, with a month-on-month decline in international volumes likely to be a correction following a strong increase in Jul-2014. Load factors improved overall, increasing strongly in domestic markets but decreasing on international services. Asia Pacific FTKs improved compared to Aug-2013 and early 2014 with recovery in emerging Asia trade volumes. A strong rise in North American FTKs was supported by increasing trade and business activity. European airlines recorded slow growth with the Russia-Ukraine crisis and ensuing sanctions resulting in downward pressure on growth momentum, particularly in countries with significant exposure to Russian industries, such as Germany. Middle East airlines continued to capture growth opportunities with new services to regions of strong and developing trade activity, including Africa and Central America, new product offerings and by providing links between markets such as Asia and Africa. African airlines recorded the strongest growth in FTKs in Aug-2014, but the overall growth trend is inconclusive due to high volatility in volumes and the slowdown in major regional economies. Growth in Latin American volumes continued to be restricted by declines in regional trade volumes earlier in 2014 and weakness in economies such as Brazil. The airfreight market outlook is improving, but future gains may be limited. Volume growth rates are accelerating compared to earlier in 2014, but are still slower than global economic growth. Business confidence indicates slightly stronger growth in future, but improvements are slowed by political and economic risks. [more - original PR] [more - original PR - 2]