IATA reports slight improvement in air cargo in May-2020, but lack of capacity continues
IATA reported (30-Jun-2020) a slight improvement in the global air cargo market in May-2020, but noted capacity remains unable to meet demand due to the loss of bellyhold operations resulting from the large number of parked passenger aircraft. Details include:
- Global airfreight demand decreased 20.3% year-on-year in May-2020, an improvement from the 25.6% drop recorded in Apr-2020;
- Overall capacity decreased 34.7%, with a 66.4% drop in bellyhold capacity partially offset by a 25.2% increase in freighter capacity;
- Load factor increased 10.4pp in May-2020, following a 12.8pp increase in Apr-2020, suggesting there is pent up demand which cannot be met due to the lack of capacity;
- IATA stated global export orders continue to fall but at a slower pace. The Purchasing Managers Index for new manufacturing export orders improved from the trough seen in Apr-2020 but remains in contraction.
IATA director general and CEO Alexandre de Juniac commented: "The gap between demand and capacity shows the challenge in finding the space on the aircraft still flying to get goods to market. For that the prospects for air cargo remain stronger than for the passenger business but the future is very uncertain. Economic activity is picking up from April lows as some economies unlock. But predicting the length and depth of the recession remains difficult". [more - original PR] [more - original PR - II]