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7-Sep-2016 10:13 AM

Jul-2016 sees strongest growth in global airfreight volumes in almost 18 months: IATA

IATA reported (06-Sep-2016) global FTKs increased 5% year-on-year in Jul-2016, marking the strongest growth in almost 18 months. AFTKs increased 5.2%, keeping yields under pressure. Freight demand increased in Asia Pacific, Europe, the Middle East and North America despite the subdued global trade backdrop. IATA noted the following regional highlights for Jul-2016:

  • Africa: Recorded the largest freight demand decline in seven years. Capacity increased 31.3% on the back of long haul expansion, albeit from a small base;
  • Asia Pacific: Growth was particularly driven by strong increases in the intra-Asia market in recent months. Results of the latest regional business surveys are mixed;
  • Europe: Recorded the fastest regional monthly growth for only the fourth time in a decade. Positive performance corresponds with an increase in export orders in Germany in recent months. Europe joins the Middle East as the only regions where freight volumes have surpassed the level reached during the airfreight rebound following the global financial crisis;
  • Latin America: The region continues to be affected by weak economic and political conditions, particularly in Brazil;
  • Middle East: The growth rate remains strong, but has eased to less than half the 14% rate between 2012 and 2015, mainly due to slower freight growth between the Middle East and Asia;
  • North America: International freight volumes continue to suffer from the strength of the US dollar, which has kept the US export market under pressure;

IATA director general and CEO Alexandre de Juniac said: "July was a positive month for air freight - which is an all too rare occurrence. Despite that, we must recognize that we face some strong headwinds on fundamental aspects of the business. Global trade growth is sluggish and business confidence is weak. And the political rhetoric on both sides of the Atlantic is not encouraging for further trade liberalisation." [more - original PR]

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