Airfreight upturn at end of 2011

Air freight markets experienced an upturn at the end of 2011, after contracting in most months since mid-2010, according to the latest financial monitor published by the International Air Transport Association. “Month-on-month growth in FTKs (freight tonne kilometres) worldwide increased 1.1% in December 2011, but downside risks to cargo traffic from the Eurozone still remain a possibility in 2012,” the report predicts. Passenger travel also rose in December to a level 5.4% higher than the same month in the previous year. But the trend since mid-year has now clearly slowed, and the impacts of weakening consumer confidence throughout 2011 are finally showing. And despite measures to reduce the freighter fleet, air freight capacity increased in Q4, a likely result of the growth in belly capacity as twinaisle passenger aircraft continued to be delivered. “Cargo load factors remain at weak levels, however good traffic performance has offset some of the capacity increase, and stabilised load factors for the moment,” according to Iata. Focusing on Africa, in the month on month (Dec 2011 vs Dec 2010) comparison, the monitor analysis finds that Africa’s airlines experienced a 1.8% drop in air freight carried (FTKs flown) while there was a 0.7% increase in the freight capacity put into the market (available FTKs) and a 24.2% take-up of the available freight capacity (freight load factor). On a 2011 vs 2010 yearon- year comparison of Africa’s performance, the analysis reports a 1.8% drop in air freight business (FTKs flown), a 2.5% increase in the freight capacity put into the market (available FTKs) and a 25.3% take-up of the available freight capacity on offer (freight load factor). While airline profits worldwide in Q4 were down 55% on last year, North American airlines in contrast to other regions improved performance.