Air cargo remains in the doldrums

The global air cargo market has remained in the doldrums, according to the latest airlines financial monitor from the International Air Transport Association (Iata) – covering the market up to end November. “Despite a monthly improvement in the freight market,” said the report, “levels are still relatively low for the year, having fallen 4% since the highs at the start of 2011.” Meantime, freight space remained balanced for the latter part of last year, with losses on the one hand having been replaced by gains on the other. According to Iata, freight capacity was showing stability in November, and indeed, has shown a flat to stable trend for some months – reductions in freighter capacity have been offset by increases in twinaisle passenger aircraft with cargo capacity. There has been another balancing act, with new aircraft deliveries adding to cargo capacity and some aircraft being taken out of storage. This offsetting the fact that preceding months had seen weak economic conditions and high fuel prices pushing aircraft into storage and retirement. There has been a similar compensatory balance between freighters and passenger aircraft. According to Iata, although airlines have taken measures to manage freighter fleet capacity with aircraft reductions, the increase in passenger aircraft has brought on new cargo capacity in any case. But gaining the right percentage usage of the air cargo capacity around the world has proved impossible for the airlines. Iata said that, although freight load factors showed some improvement in November, the overall market conditions had continued to deteriorate, with load factors 6% lower than their peak in mid-2010.