2-Feb-2017 8:47 AM

IATA: Global airfreight volume growth in 2016 nearly double the five year average

IATA stated (01-Feb-2017) global FTK growth of 3.8% year-on-year in 2016 was nearly double the average industry growth rate over the last five years. All regions except Latin America experienced positive freight growth and European carriers accounted for nearly half the total annual increase in demand. Freight volumes recovered in 2H2016 after a weak start to the year. The uptick in demand was attributed to a strong peak season, increased shipments of silicon materials and a turnaround in new export orders. IATA director general and CEO Alexandre de Juniac said: "Looking ahead, strong export orders are good news. But there are headwinds. The most significant is stagnant world trade which also faces the risk of protectionist measures. Governments must not forget that trade is a powerful tool for growth and prosperity. The air cargo industry must also improve its competitiveness." IATA noted the following regional details:

  • Africa: Freight demand growth was slower than 2015 and capacity increased 25.5% in 2016 due to long-haul expansion, particularly by Ethiopian Airlines, causing a decrease in load factor;
  • Asia Pacific: Seasonally adjusted volumes returned to levels reached during the post global financial crisis rebound in 2010. Increased demand is captured in the positive regional business survey outlook;
  • Europe: Recorded the largest cargo volume increase of all regions in 2016. The seasonally adjusted growth trend is strong and corresponds with a sustained increase in export orders in Germany and ongoing weakness in the Euro;
  • Latin America: Saw the second consecutive year of declining demand, but seasonally adjusted growth is in line with the start of 2016. The region continues to be impacted by weak economic and political conditions, particularly in Brazil;
  • Middle East: Recorded the second fastest growth rate of all regions in 2016, but the slowest pace of growth since 2009 and well below the 12% annual rate over the last decade. The slowdown is mainly due to weak Middle East-Asia and Middle East-Europe volumes;
  • North America: The strength of the US dollar continued to boost the US inbound market but kept the export market under pressure. [more - original PR]

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