IATA sais weak March air freight volumes point to another difficult year

The International Air Transport Association (IATA) released demand growth data for global air freight markets for March 2016 showing a 2.0% drop in volumes measured in freight tonne kilometers (FTKs) compared to the same period last year. In contrast, freight capacity (measured in available freight tonne kilometers or AFTKs) rose by 6.9%, putting increased pressure on already struggling yields. The weak results reflect subdued growth in world trade, exaggerated by the comparison to a particularly strong start to 2015 when air freight volumes were boosted by the effects of the US West Coast seaports strike. The most significant fall in demand was reported by carriers in Asia-Pacific and North America. Combined they account for around 60% of global freight traffic and reported declines of 5.2%, and 1.8%, respectively.