IATA’s figures for September show global air freight demand up 9.2%

Despite a slow down in demand, compared to the same period in 2016, September 2017 global freight market figures rose 9.2%, well ahead of the five-year average of 4.4%. Freight capacity in freight tonne kilometers (FTKs) was up 3.9% compared to September 2016, which is positive for industry load factors, yields and financial performance.
According to Alexandre de Juniac, IATA’s Director General and CEO: “Demand for air cargo grew by 9.2% in September. While that’s slower than in previous months, it remains stronger than anything we have seen in recent memory. But there are signs that this demand spurt may have peaked. So, it becomes even more important to reinforce the industry’s competitiveness by accelerating the modernization of its many antiquated processes.”
With year-to-date demand growth of 10.1%, the IATA forecast of 7.5% growth in air freight demand for 2017 appears to have significant upside potential. Airlines in all regions reported an increase in year-on-year demand in September, a summary of which is given below:
Asia-Pacific airlines saw freight volumes increase by 9.3% in September 2017, compared to the same period last year. Capacity in the region expanded 5.3%. Demand growth was strong on all the major routes to, from and within Asia-Pacific, consistent with strong export order books for the region’s manufacturers.
North American carriers posted an increase in freight volumes of 7.4% for the month; the region also posted the second-fastest international growth rate among regions (11.0%). Capacity increased 1.4%.
European airlines posted a 10.3% increase in freight demand in September 2017, and a capacity increase of 5.6%. Concerns that the recent strengthening of the euro might have affected the region’s exporters have not materialized.
Middle Eastern carriers’ year-on-year freight volumes increased 8.9% in September 2017 and capacity increased 2.6%. Strong competition, particularly on the Asia-Europe route, means that Middle East carriers are not seeing as healthy a pickup in the seasonally-adjusted traffic trend as carriers in other regions.
Latin American airlines experienced a growth in demand of 7.6% in September 2017 and capacity increased by 5.9% compared to the same period in 2016. International freight volumes rose by 8.6% over the same period. This is well above the five-year average rate of 0.1%. The pick-up in demand reflects signs of economic recovery in the region’s largest economy, Brazil.
African carriers posted the largest year-on-year increase in demand of all regions in September 2017, with freight volumes rising 17.7%. This is a slowdown from August but still more than twice the five-year average growth pace of 8.7%. Capacity increased by 2.6% over the same time period.