IATA reports 11.4% increase in global air freight demand in July 2017
New data from the International Air Transport Association (IATA) has revealed that demand for the global air freight market increased by 11.4% in July this year compared to the same period last year.
The growth is measured in freight tonne kilometres (FTKs) and marks the fourth time in five months that witnessed a double-digit annual growth.
The latest increase in demand for the sector is four times greater than the ten-year average growth rate of 3.1%.
The IATA report also noted that freight capacity rose by 3.7% in July this year compared to the same period last year.
Increase in air freight demand continues to surpass capacity growth, which is positive for the airline and the industry’s financial performance.
According to IATA, increase in the air cargo sector is fuelled by a slight growth in global trade, rising export orders and positive business confidence indicators.
However, the demand might soon reach its peak.
IATA director general and CEO Alexandre Juniac said: “July was a strong month for air cargo with double-digit growth.
“And for the third consecutive month demand for air freight grew at a faster pace than demand for air travel.
“While the outlook for the rest of the year remains positive, there are signs that the cyclical growth period may be nearing a peak.”
The IATA report further revealed that with a 33.7% volume increase, Africa witnessed the largest growth this year.
Asia-Pacific airlines’ cargo volumes rose to 11%, while capacity increased by 6.3%.
Airlines in North America recorded an 11.9% increase in freight volumes, while European carriers posted a 12.1% increase in freight demand.
Middle Eastern carriers’ recorded a 9.3% increase in freight volumes, and Latin American airlines witnessed a 5.8% growth in demand in July compared to the same period last year.