The latest global air cargo market data released by the International Air Transport Association (Iata), covering July 2023, reveals a continuing trend of recovering growth rates since February.
According to a statement from the organisation, July air cargo demand was tracking just 0.8% below the previous year’s levels.
Although demand is now basically flat compared to 2022, this is an improvement on recent months’ performance, which is particularly significant given declines in global trade volumes and rising concerns over China’s economy.
Global demand, measured in cargo tonne-kilometres (CTKs), tracked at 0.8% below July 2022 levels (-0.4% for international operations).
This was a significant improvement over the previous month’s performance (-3.4%).
Capacity, measured in available cargo tonne-kilometres (ACTKs), was up 11.2% compared to July last year (8% for international operations).
The strong uptick in ACTKs reflects the growth in belly capacity (29.3% year-on-year) due to the summer season.
"Compared to July 2022, demand for air cargo was basically flat. Considering we were 3.4% below 2022 levels in June, that’s a significant improvement. And it continues a trend of strengthening demand that began in February,” said Willie Walsh, Iata’s director general.
How this trend would evolve in the coming months, he added, would be something to watch carefully.
“Many fundamental drivers of air cargo demand, such as trade volumes and export orders, remain weak or are deteriorating.
“And there are growing concerns over how China’s economy is developing. At the same time, we are seeing shorter delivery times, which is normally a sign of increasing economic activity. Amid these mixed signals, strengthening demand gives us good reason to be cautiously optimistic."
African airlines recorded the strongest performance in July, with a 2.9% increase in cargo volumes compared to the same month last year. Notably, Africa–Asia routes experienced significant cargo demand growth (10.3%). Capacity was 11.0% above July 2022 levels.
